Nanny vs. Daycare: Cost, Care, and Choosing the Right Fit for Your Family

So you need to go back to work? Childcare decisions are among the most important choices you’ll make as a parent. If you’re weighing the pros and cons of hiring a nanny versus enrolling your child in daycare, you’re not alone. Both options offer valuable benefits depending on your family’s needs, schedule, and budget. Below, we’ll break down the key differences so you can make the most informed decision for your little one.

Difference between a nanny and daycare

What Is a Nanny?

A nanny is an household employee hired by a family. They provides in-home care for your child on a consistent schedule. Their duties often include bottles or meals, following a routine, developmental play, light child-related chores, and sometimes errands or meal prep related to the child.

Many [but not all] nannies hold certifications in CPR and first aid, and might have a background in early childhood education. If you hire a nanny through a reputable agency they will also have verifiable experience, references and a comprehensive background check.

There are several variations of nanny care:

• Full-time nannies [30 hours or more]
• Part-time nannies [10-30 hours per week]
• Live-in nannies, who reside with the family [hours may vary]

What Is Daycare?

Daycare provides care outside the family’s home in a center-based or in-home setting. These programs should be licensed and regulated, with specific caregiver-to-child ratios and structured safety requirements.

Most daycares offer predictable daily routines, early learning activities, and opportunities for social interaction. Larger centers may follow a curriculum designed to promote early cognitive and social development.

Key Differences Between Nanny and Daycare

a. Cost & Budget

Hiring a nanny generally costs more than daycare enrollment. In addition to an hourly or weekly rate, families employing a nanny are responsible for taxes, paid time off, and sometimes healthcare contributions, mileage and other considerations.

Daycare costs vary by region and quality of the program, but centers are almost always the more affordable option. Some families may qualify for government subsidies or employer-based childcare credits for a licensed daycare.

Costs vary WIDELY, but in Boston Mass [which is on the higher end] for full-time daycare for one baby you can expect to pay $20,000-$30,000 per year, whereas a nanny for 40 hours can run you $60,000-$75,000 a year [base salary without benefits, taxes or overtime].

Thankfully both daycare and nanny rates have “sibling discounts”. In fact, if you have three children it actually might become cheaper to have a nanny vs daycare depending on the circumstance. However, in most scenerios daycare is the more affordable and more commonly used childcare option.

b. Schedule & Flexibility

Nannies offer customizable schedules and can provide overnight, weekend, or travel support. They can start early, end late or even sometimes offer a split schedule. Care happens in your home, saving time on daily drop-offs and pickups. Nannies may also be able to offer services such as meal preparation of laundry for your child.

Daycares operate on set hours [Typically between 630am-6pm] and close for holidays or staff training days, offering less flexibility but predictable structure.

Both nannies and daycares expect the concept of guaranteed hours. This means that even if you aren’t using the time, you’ve paid for that slot.

c. Socialization & Development

Nannies provide individualized attention and routines designed around your child’s developmental needs.

Daycare programs encourage early peer interaction, cooperative play, and structured learning.

Research shows minimal long-term developmental differences between the two, so it often comes down to your family’s priorities: personalized care vs. social group learning.

Families seeking a blend of both may consider a nanny share—two families splitting the cost of one caregiver while offering socialization benefits.

d. Health, Illness & Safety

Nanny care typically means fewer germs and consistent exposure to one caregiver.

Daycares have more children, increasing exposure to common colds and viruses, though they also follow strict cleaning and safety protocols. Most daycares require children to stay home when ill, so families often need a backup plan for sick days.

In this instance, nannies are the clear winner. Germs typically aren’t something to fear, illness is part of strengthening the immune system. However, missing work can be challenging for parents. They may need to arrange alternative care if they are too sick to attend.

e. Caregiver Relationship & Continuity

Many families form lasting bonds with their nannies, often describing them as “part of the family.” Nannies can offer a sense of continuity and stability, which is especially beneficial in the early years. Secure attachment is extremely important for infants and toddlers, and parents often feel more at ease leaving their baby with someone that they trust and that knows and understands their little one.

In daycare, multiple caregivers may rotate throughout the day, and there might be a higher turnover. In addition the children change rooms and main teachers every year or so. Athough well-run centers maintain consistency with primary teachers in each room, and a slow and intentional transition between classrooms.

Nanny or Daycare: Which Option Is Better for Your Family?

There’s no one-size-fits-all answer. Some families value the convenience, routine, and social setting of daycare, while others prefer the personalized, home-based attention of a nanny. It comes down to what works for your family and your goals. If you want to set up a time to chat about the Pros and Cons of hiring a nanny; We’d love to chat with you!

How Well Supported Family Can Help

If you are pregnant or have a newborn and you aren’t ready to make a long term decision, we might be able to help in the meantime! We have a team of Newborn Care Specialists and Postpartum Doulas that offer overnight, daytime and 24/7 care through the first 3-6 months of your baby’s life. While our postpartum team isn’t speficially”chilcare”, we ARE experts in newborn care and can help bridge a gap in support. Many Parents choose to have care from a Newborn Care Specialist until they feel ready for less-specialized support with a nanny or at a daycare center.

Well Supported Family has teams in many metro areas across the USA [Boston, NYC, NJ, Stamford, Phoenix, Chicago, Atlanta, Miami, Tampa and more].

Or if you’re ready to hire a nanny, we can help with that as well!

Schedule a free consultation to chat through options and solutions.

FAQ Section

Is a nanny more expensive than daycare?
Yes, hiring a nanny is typically more costly because it includes wages, taxes, and benefits with a much lower adult to child ratio.

Can I use both a nanny and daycare?
Yes! Some families use daycare part-time and hire a nanny for mornings, evenings, or travel.

What’s the difference between a nanny and a Postpartum Doula?
A nanny provides long-term childcare. A Postpartum Doula supports recovery, education, and family adjustment in the early weeks after birth. A Postpartum Doula is not childcare and typically does not stay with one family long term.

How do I find a qualified Nanny?
Start with referrals and trusted agencies like Well Supported Family, which screens all caregivers and ensures high standards of experience and professionalism.

Do you offer care in my state?
Yes, we currently serve families in multiple states across the U.S. including New England, New York, New Jersey, Illinois, Georgia, Florida, and Arizona.