Summer Camp: 4 Ways to Reduce Costs

When I was growing up, my parents always shipped me off to summer camp and I loved it. Now that my oldest daughter is five, I'm ready to sign her up instead of sending her to day care for the season. So I recently started researching some popular programs here in New York City and almost had a heart attack. The four that were recommended to me cost over $7,000 for an eight-week session. I decided to call the American Camp Association (ACA) for some advice on how I could spend less without sacrificing on fun.

It turns out that $7,000 is not all that pricey for a day camp in my area. The northeast is home to some of the most expensive programs in the country. But that doesn't mean that a parent can't find a cheaper alternative. Summer camps across the country tend to average $100 to $800 a week, according to the ACA. In addition to shopping around for the cheapest ones in your area, you can also save some money by taking advantage of discount programs and tax breaks offered by Uncle Sam. Here are some suggestions for trimming your tuition bill:

1. Early-Bird Discounts
Most camps offer an early-bird discount in the Fall. But I recently noticed that a few programs are still advertising this special through mid-February. Write a check now and you could save up to $300 for some of the more expensive day and resident camps.

2. Sibling Discounts
Send two kids to the same camp and you could save up to another 10%. This type of discount doesn't tend to expire. But if you wait until the last minute, the program you like may not have spots for both of your children.

3. Financial Assistance
There's no harm in asking for a little help. Indeed, 90% of summer camps offer financial aid, according the ACA. And 55% give away more than $10,000 in assistance each summer.

If you don't think you'll qualify for financial aid, ask about payment plans that allow you to spread out the fee over a few months.

4. Tax Breaks
Once kids hit elementary school many parents forget that they can take advantage of child care related tax breaks. If both parents are working (or looking for employment) and your children are under the age of 13, Uncle Sam offers two ways to save money on summer camp expenses.

First, parents should make sure they take advantage of the Child and Dependent Care Tax Credit. This is worth 20% to 35% of child care expenses up to $3,000 for one child and $6,000 for two kids or more. And the good news is that the IRS considers summer camp a form of child care since it allows parents to work.

Second, check with your employer to see if it offers a dependent care flexible spending account. If it does, you're allowed to set aside up to $5,000 annually for child care expenses.

As for my daughter, she won't get to go to the fancy day camps all her friends seem to attend. I'm going to start looking into programs at the local YMCA. If you live outside of a major city, you could also consider investigating camps run by your local municipality since they often offer relatively inexpensive programs.

How much do you spend on your child's summer camp?

Stacey Bradford is the author of The Wall Street Journal Financial Guidebook for New Parents.
Swimming In Color image courtesy of Flickr, CC 2.0.
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