How much will nanny care cost?

A nanny is usually your most expensive option. Keep in mind that when you hire a nanny you become an employer, and the government expects you to pay your nanny's Social Security taxes and fulfill other responsibilities.

Depending on where you live and how stiff the competition is for qualified candidates, you'll probably pay a nanny between about $350 and $700 a week — though your costs could be lower if it's a live-in situation. (According to the International Nanny Association, nanny salaries are highest in Massachusetts, New York, and Connecticut.)

Since a nanny is an employee, many parents pay for their nanny's health insurance. If you do this, the nanny usually picks her own health plan and provides you with the financial breakdown. You can then decide to pay for all or part of the premium. You may also want to offer other benefits, such as paid holidays, vacation, and sick days.