Growing up, I was fortunate to have what people now call a village. Both of my parents were firefighters who worked 24-hour shifts and were able to trade off at the fire station so one of them could be home with us. My grandparents were regular babysitters, and nearly all of my immediate family lived within 30 minutes.
At the time, I obviously didn't think about what any of that was worth. Now, as a financial advisor, I realize just how much money that kind of support can save a family.
Many parents today don't have the same setup. Families live farther apart, grandparents are working longer, and two-income households leave less flexibility when a child is sick or daycare closes. As that informal support disappears, the cost doesn't disappear with it. It moves onto the family budget.
Almost No Free Options Before Kindergarten
According to Care.com’s 2026 Cost of Care Report, parents now spend an average of 20% of household income on childcare, and nearly a third say they're dipping into savings just to cover it.
Here on the Westside of Los Angeles, full-time infant care can easily run $2,000 to $3,500 or more per month. For one child, that's roughly $24,000 to more than $40,000 a year.
What makes the first few years especially difficult is that families have limited access to free childcare before reaching the public-school system.
California's expansion of transitional kindergarten has helped by providing a free option beginning at age four for eligible children, but families can still spend several years paying for care before getting there.
Add a second young child and childcare can quickly become one of the largest expenses in the household.
This is also where grandparents can completely change the financial picture. If a grandparent covers even two days of childcare each week, that help can be worth thousands of dollars a year. Add in sick days, school pickups, or the occasional weekend and the value grows even more.
Should you keep working?
For families in Los Angeles, childcare can become expensive enough that it is worth asking whether having both parents work still makes financial sense during those early years.
If one parent earns less than roughly $100,000, there are situations where the math can get surprisingly close. A $90,000 salary isn't $90,000 of spendable income. After federal and California taxes, childcare, commuting, and other work-related expenses, the amount that second income actually adds to the household may be much smaller than expected.
That doesn't mean someone should automatically leave the workforce. Stepping away has its own financial consequences, including lost retirement contributions, benefits, career progression, and future earnings.
The important thing is to run both scenarios. This is something we help families do in a financial plan. We can compare two working parents with full-time childcare against one parent temporarily staying home while also accounting for retirement savings, benefits, future income, and what changes once the child reaches school age.
The same goes for family support. If grandparents currently provide “$1,500” worth of childcare each month, what happens if that help is suddenly unavailable? Would the budget comfortably absorb it, or would other savings goals need to change?
A financial plan shouldn't assume your village will disappear, but it also shouldn't depend on everyone being available forever.
How You Can Be Prepared
These are exactly the kinds of conversations I have with new and expecting parents, and it's one of the reasons I regularly teach From Crib to College, a financial planning class for new parents at The Pump Station.
We talk about childcare, saving for college, life insurance, estate planning, budgeting, and how having a child changes financial decisions you may not have thought twice about before. Understanding what your own village is worth, what it would cost to replace it, and how that fits into the rest of your financial life deserves to be part of the plan as well.
If this resonates with you, you can sign up for my next From Crib to College class at The Pump Station here.
Mia Samson is a Financial Advisor of Santa Monica, California-based Gerber Kawasaki Inc., an SEC-registered investment firm with approximately ~$4.78B billion in assets under management and assets under advisement as of 06/30/26. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which course of action may be appropriate for you, consult your financial advisor. No strategy assures success or protects against loss. Readers shouldn't buy any investment without doing their research to determine if the investments are suitable for their situation. “All investments involve risk and one should consult a financial advisor before making any investments. Past performance is not indicative of future results."
Gerber Kawasaki Wealth & Investment Management is an investment advisor located in California. Gerber Kawasaki Wealth & Investment Management is registered with the Securities and Exchange Commission (SEC). Registration of an investment advisor does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. Gerber Kawasaki only transacts business in states in which it is properly registered or is excluded or exempted from registration. A copy of Gerber Kawasaki Wealth & Investment Management 's current written disclosure brochure filed with the SEC which discusses, among other things, Gerber Kawasaki Wealth & Investment Management's business practices, services and fees, is available through the SEC's website at: IAPD - Investment Adviser Public Disclosure - Homepage .
