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A nanny contract is a formal document between parents and a caretaker, outlining the nanny's responsibilities and compensation. A nanny is dedicated to the long-term care of children, differing from a babysitter, who typically provides temporary care. Nanny responsibilities may include household duties, meal preparation, and everyday care. Some families opt for a live-in nanny who resides full-time with them. To find a nanny, parents are advised to seek referrals from family and friends and to explore websites like Care.com or Sittercity.com for a variety of options and reviews.