Childcare is a business like any other. We pay taxes and social security, we network, we attend workshops and take classes that better us and expand our knowledge. We invest time and money in our business, so why not use our business to invest in our financial health and start nanny savings for retirement?
For those 9-5ers out there, stocks and trading are easily accessible through water cooler talk and employee bonuses, but for those of us who work in childcare, the only investments we discuss with our co-workers are juice boxes and LOL Surprise. However, these tips and apps make saving money and investing both simple and easy. If you can get your kids to do their homework and eat their greens, trading and investing will be a walk in the park (without the stroller). Here is our top ten list of ways nannies can start preparing for retirement.
Robinhood is an app that allows you to buy and trade stock without having to shell out any of your hard earned date night cash on commissions or fees, making it a great option to invest more of your nanny money for retirement!
Acorns is the best app if investing has you feeling stumped. Acorns links to your bank account, rounding up everything you spend to the nearest dollar and transferring them to your Acorns account to be invested automatically. An awesome option for nannies to plan ahead for retirement with minimal effort.
A live-in nanny has great responsibilities, and opportunities for great savings. In a place like Los Angeles where rents are exorbitant, being a live-in nanny can allow you to put all of the money you would spend on rent and commuting to work to your retirement fund instead
Do you really need that unlimited data plan? Yes it’s nice to be able to hand your kids an iPad with Baby Shark queued up for those desperate moments, but cutting back on your screen time in general will help you lead by example, and save you lots of cash for your retirement!
Who needs a trainer when you are surrounded by elementary-aged kids? Skip the monthly gym membership that you’re too tired to use after a long day of nannying, and schedule workout activities with your kids while on the clock. Kicking the soccer ball or shooting hoops gets your steps in while tiring them out for bed time. It’s a way to bond during play time, and, instead of spending money to keep healthy, you’re making it!
Stash is a great tool for beginner investors and especially for nannies looking to put away money. It lets you invest as little as $5 and teaches you as you go. It also has articles and tips loaded with a wealth of information on investing.
IRA’s are a great option for nannies saving for retirement. Contributing to one of these accounts cuts your tax bill and gives you options to invest. While you’re meal prepping and picking kids up from school, your IRA is growing until you’re ready to retire.
If you’re questioning whether or not something is worth buying, think about how many hours you have spent corralling kindergartners and changing diapers. Would you trade 4 hours of disinfecting high chairs for that new jacket? If not, don’t buy it! Instead, put away that cash for when you’ve changed the last diaper of your nanny career.
Nanny shares are a great way for nannies to generate extra income for retirement without working extra hours. Team up with two families at a time and watch your nanny retirement fund grow! Not sure how nanny shares work? Reach out to us with any questions.
A live-in nanny has great responsibilities, and opportunities for great savings. In a place like Los Angeles where rents are exorbitant, being a live-in nanny can allow you to put all of the money you would spend on rent and commuting to work to your retirement fund instead. Interested in a live-in situation? Check out our job page or let us know! We would be more than happy to help you find your live-in family.
Dining out can be the biggest drain on your bank account. A meal eaten out now is money taken from your nanny retirement fund. Take your meal prep skills out of your family’s house and into your home! Ask your nanny family if you could cook your own meals while cooking theirs, this way you don’t have to feel like you’re working when you’re off the clock. You can save money by eating home cooked meals and save time by utilizing their kitchen (which, let’s face it, probably has a veggie spiralizer).
Still confused as to how you can get a head start on your nanny retirement? Reach out to us with any questions or concerns and we’ll help you formulate a plan. Nannying is a rewarding and sometimes taxing career, you deserve to feel prepared for your retirement.