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A nanny contract is a formal document between parents and a nanny that outlines the nanny's responsibilities and compensation. A nanny is distinct from a babysitter, as nannies typically take on long-term care of children, including household duties, meal preparation, and daily care. Some families may choose to hire a live-in nanny who lives full-time with them. To find a nanny, parents are advised to seek referrals from family and friends and explore websites like Care.com or Sittercity.com, which offer a variety of options and reviews for potential nannies.