When considering childcare options for your family, au pairs can be more cost-effective than nannies. However, upfront expenses like agency fees and flight costs must be considered. Other expenses include a phone or mobile data plan (if your au pair will have their own), utilities, and household basics (towels, mats, toothbrush holder, etc). It would help if you also covered reasonable transportation costs when your au pair is working with you.
Agency Fees
Au pairs aren’t just babysitters. The State Department regulates them to undergo rigorous screening, training, and criminal background checks to ensure they’re safe for your family. Additionally, they often have specialized experience with infants (required for working with children under 2) and spend extra time in training. Au pair agencies charge registration and program fees to recruit, screen, and train au pairs and manage the matching process and visa processing for both the au pair and host family. These agencies also provide year-round support to au pairs and hosts locally and from their central office. Families can save on au pair program costs if they sign up for a repeat host au pair program. These discounts can include a one-time match fee credit and reduce the total cost of the au pair experience to your family. In addition to these upfront expenses, you will be responsible for ensuring your au pair can attend any required classes or courses they need to complete. This can be done through a generous travel allowance, a car for them to drive, or offering a phone with enough monthly data.
Weekly Stipend
Au pairs must work 45 hours per week in their host family’s home in exchange for room and board. As a result, au pair wages are essentially tied to federal minimum wage levels with deductions made for room and board. Au pairs also do not receive overtime pay, unlike hourly employees who may earn overtime for working more than 40 hours a week. The weekly stipend is a central component of the au pair program, offering numerous benefits to both au and host families. This arrangement ensures that au pairs receive a consistent income to cover their living expenses, fostering financial stability during their stay abroad. For au pairs, the stipend is a valuable resource, allowing them to explore the host country, participate in cultural activities, and take language courses, enhancing their overall experience. Host families, in turn, benefit by providing a structured compensation that contributes to a positive and supportive living environment for the au pair. The weekly stipend not only facilitates a fair exchange of services but also promotes a sense of financial security, contributing to the success of the cultural exchange program.
Educational Stipend
Many au pairs seek more cultural experience with their host families than child care. They develop close relationships and often feel like an additional family member. These relationships have a powerful impact on young children and support healthy development. The program’s educational component provides mutually beneficial opportunities for au pairs and host families to learn more about American culture, values, and leadership. Host families must pay a scholarly contribution towards their au pair’s education component. If an au pair is rematched after their study, sponsors must arrange the equitable cost distribution between the new and former host families. In addition, sponsors are responsible for finding new placements for au pairs if they cannot be rematched and must end their program early. These complex arrangements can result in unexpected expenses for the old and new host families. These costs must be factored into the overall program’s finances.
Travel Expenses
In addition to housing and food, host families must also pay for au pairs’ travel expenses. These can vary depending on the country and how far away your au pair’s home is from yours. Some au pairs can apply for a grant to help cover the cost of language courses and travel costs to the school. They should also keep some of this money aside to cover the expense of their return journey. In addition, they should also consider paying in whole or partly the health, accident, and liability insurance required by regulations. Families are also responsible for their au pairs’ educational contribution. This includes fees for credited classes such as linear algebra or cooking. Families can also contribute to extra types your au pair might want to take in their spare time. Finally, you’ll need to factor in your au pair’s two weeks of vacation during their program year.
Personal Expenses
Aside from the program fees billed to au pairs, many families cover additional expenses such as cell phone, health insurance, and travel insurance. These can quickly add up, but they’re not a necessary part of the au pair program. Au pairs are motivated by a variety of reasons. Some want to learn a new language, stay home for a year, or boost their career. But most choose to become au pairs because they love children and they’re looking for stability, purpose, and a way to make a difference in the lives of their host family members. It’s no wonder that when Castle Miller tweeted, “raising kids is like indentured servitude,” it was the tweet heard around the personal finance world—and, of course, the internet’s dark corners concerned with fair labor practices.
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