When netting zero dollars, would you put 20k towards college or a better infant care provider?

[Anonymous]

With limited funds, would you put the $ in infant care or towards college funds? HHI about 200k, bought a house last year with a big DP, two rentals, but we still net zero after mortgage and childcare costs. One person's earning potential is limited, the other's salary may go up but who knows. Currently job searching.

We can put our infant son at Daycare A that is ok but not that great or with provider B whom we like much better and the adult child ratio there half than the daycare A. But option B is pricier and it means we need to use $600 each month from our savings. If we go with B for the next 3 years before preschool starts, that's a something like 21k difference.

If I invest the $600 instead, 20k might turn into something much bigger and help the child better. Currently we end up net zero if we fund retirement and put $300 in his 529 (I know his college fund is underfunded but we are not aiming to fund 100% of costs).

Ideally I would like to go with B but want to fully understand the ramifications of doing that. As long as the infant is kept alive and gets ok care, maybe $$ is better spent for later?

[Anonymous]

First few years are very important developmentally. Spend the money on better care.

For example, with a high staff:child ratio, some kids will be left crying for a while, as the provider attends to other babies. For little ones, that can be really traumatic.

[Anonymous]

So are ratios 2:1 vs 4:1 OR
3:1 vs 6:1

As long as the ratios are ones you are comfortable with I would select the less expensive daycare.

Is it in a home vs a center? Is there TV vs non TV?

You know the difference and can decide for yourself what your family needs are.

[Anonymous]

Will you feel ok with yourself at work each day knowing your kid is in substandard care? I wouldn't do it.

[Anonymous]

Anonymous wrote:So are ratios 2:1 vs 4:1 OR
3:1 vs 6:1

As long as the ratios are ones you are comfortable with I would select the less expensive daycare.

Is it in a home vs a center? Is there TV vs non TV?

You know the difference and can decide for yourself what your family needs are.

It's 2:1 v 4:1. No TVs in either.

[Anonymous]

Anonymous wrote:So are ratios 2:1 vs 4:1 OR
3:1 vs 6:1

As long as the ratios are ones you are comfortable with I would select the less expensive daycare.

Is it in a home vs a center? Is there TV vs non TV?

You know the difference and can decide for yourself what your family needs are.

I would not dip into savings and an 4:1 ratio is not bad.

[Anonymous]

I would not dip into savings because of a 4:1 ratio. Find another daycare you like, that is the same price as the 4:1 ratio one now.

The first few years are important, sure. But not really. If your child is safe and loved and stimulated appropriately at daycare, that's really all they need.

[Anonymous]

We found an in-home with a 2:1 ratio for $1200 / month in Arlington. No TV. Loving caregivers. I feel like we won the lottery; we put $800 / month into the 529 that we would've paid a commercial daycare.

There are unicorns out there, you just have to look.

[Anonymous]

Better infant care

[Anonymous]

What makes option B better? I've toured a lot of centers and in-home providers and once you're above the $250/week threshold, I didn't find a strong correlation between quality & price. Price seemed to be more a reflection of the rent that the center was paying, and perhaps a premium that was meant to signal better care, but didn't necessary mean better care, ie - more administrative oversight, which can provide some value, but also may not mean much.

[Anonymous]

Anonymous wrote:We found an in-home with a 2:1 ratio for $1200 / month in Arlington. No TV. Loving caregivers. I feel like we won the lottery; we put $800 / month into the 529 that we would've paid a commercial daycare.

There are unicorns out there, you just have to look.

Name? contact info?

[Anonymous]

Put into an emergency fund, then maybe college.

[Anonymous]

I would go with the cheaper one. If you want to switch when your child turns 15 or 18 months, that would make more sense to me.

[Anonymous]

Definitely put that money towards college. What does an infant need -- milk and diaper changes all day? I'm pretty sure at 4:1 they are providing that. Any "learning" or "stimulation" offered by the pricey option won't mean a thing to your child or his development -- college money will matter a whole lot more.

[Anonymous]

For an infant, no. For a preschool, yes spend the money.

Do you want to post your monthly budget for tips on how to save? This forum is usually good at pointing out items to cut.