What Percent of Your Income Do You Spend on Childcare?

[Anonymous]

The title says it all. I earn $75k. With two children under 4, childcare costs are $50k. Should I just stay home until the youngest is in Kindergarten?

[Anonymous]

My childcare costs $1600/month, which is about 1/3 of my monthly takehome. We are a 2-income family and could thrive on just my husband’s salary, but I love my work.

[Anonymous]

I don’t have kids yet but this is nightmarish. Where do you live?

[Anonymous]

$200 a week and we make roughly $2100 after taxes, 401k and insurance a week. So 10% of take home.

[Anonymous]

Anonymous wrote:I don’t have kids yet but this is nightmarish. Where do you live?

NWDC

[Anonymous]

Currently about 15% of MY income but I’ll have another kid in daycare in a few months, so double that.

Without knowing your job and how much longer both kids will be in daycare, it’s hard to say. I’m generally of the mindset that women miss out on too much by taking themselves out of the workforce for childcare (missed retirement, missed promotions, healthcare, etc.). Even if you’re breaking even, there’s still a long term benefit to working.

If you have a job that can easily be picked up later, that’s a slightly different question.

[Anonymous]

Anonymous wrote:The title says it all. I earn $75k. With two children under 4, childcare costs are $50k. Should I just stay home until the youngest is in Kindergarten?

Can you easily reenter the workforce?

[Anonymous]

I choose to stay home because of child care costs. After taxes, it wasn't worth it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The title says it all. I earn $75k. With two children under 4, childcare costs are $50k. Should I just stay home until the youngest is in Kindergarten?

Can you easily reenter the workforce?

I cannot. The gap in the resume would be detrimental in my field.

[Anonymous]

Anonymous wrote:Currently about 15% of MY income but I’ll have another kid in daycare in a few months, so double that.

Without knowing your job and how much longer both kids will be in daycare, it’s hard to say. I’m generally of the mindset that women miss out on too much by taking themselves out of the workforce for childcare (missed retirement, missed promotions, healthcare, etc.). Even if you’re breaking even, there’s still a long term benefit to working.

If you have a job that can easily be picked up later, that’s a slightly different question.

This. There are exceptions, but really would you ever advise someone to take 3 plus years off of work? The max 401k contribution of 19k plus any match will absolutely make a difference in retirement.

[Anonymous]

Then it seems pretty obvious right? Will your oldest child be eligible for the PK3 lottery?

[Anonymous]

Anonymous wrote:The title says it all. I earn $75k. With two children under 4, childcare costs are $50k. Should I just stay home until the youngest is in Kindergarten?

You need to find cheaper childcare, enter the PK3 lottery, and look at Communikids and the other more geographically doable CBOCs for any child over three.

We had three kids in childcare at one point in NWDC, center care, 4300 a month for all three.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The title says it all. I earn $75k. With two children under 4, childcare costs are $50k. Should I just stay home until the youngest is in Kindergarten?

Can you easily reenter the workforce?

I cannot. The gap in the resume would be detrimental in my field.

Don’t quit.

Can you make more money? You can earn 50k as a nanny...you’re a professional earning only $75k??

[Anonymous]

I assume you mean strictly the cost of daycare or a nanny, and not all the other costs that would be there regardless (clothes, toys, food, etc.). We pay roughly $21,600/year for our 2 year old to be at a center full-time. I make $90,000 and DH makes $250,000 (excluding stock), so I guess that comes out to roughly 6% of our pre-tax income.

With 1 kid and no plans for another, we don't particularly need my income, but it allows us to more easily afford luxuries, put money away for college and retirement, and it gives DH flexibility to take more risks, work-wise. I'm a fed, so my job isn't going anywhere anytime soon. I also love my work and DD loves her daycare program, so I don't want to quit.

[Anonymous]

If you can make ends meet both ways (minimum ends as in housing, food, loan payments) then it isn't a near term financial question it is a long term financial question and personal one. Look out to your earnings both ways for the next decade not the next 3 years, combined with your personal preferences. And both partners pay for childcare not just thr woman!