The Economics of a Nanny Share
The Arbitrage of Care
A Nanny Share is when two families employ one nanny to care for their children simultaneously. It is one of the most effective ways to access high-quality care at a lower price point.
The Math
- Standard Rate: Let's say a top-tier nanny charges $35/hr.
- Share Rate: In a share, the nanny typically earns a premium (20-30% more) for managing two children from different families. The new rate is ~$45/hr.
- Split Cost: Each family pays two-thirds of the nanny's standard rate. So, each family pays $22.50/hr.
The Result:
- Nanny earns $45/hr (vs $35).
- Families pay $22.50/hr (vs $35).
Key Considerations
- Host Family: Who hosts? Often families alternate weeks/months.
- Payroll: Each family is a separate employer. You cannot combine payments into one check legally. Both must issue W-2s.
- Compatibility: Parenting styles (sleep training, diet, discipline) must align, or the nanny will be caught in the middle.