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[quote=Anonymous]Hi all! Does anyone have a gauge of what you should be spending on daycare expenses should be a relation to your household income?  I know its not a question to ask in a vacuum without seeing a person's full budget, but I am trying to get a sense of whats normal around here.

We have a 2 year old son and are going to start trying for a second baby soon. DS goes to daycare in Old Town Alexandria (we live outside of Old Town) and right now are paying $1656/mo for his tuition. Infant rates at his daycare are $1892/mo and they have small sibling discounts (10% and 5% respectively).

Our pretax HHI is $270K. We have a small mortgage ($2300)- bought a small, cheap house (when we made less and were a little too risk averse)  that we are quickly outgrowing and are considering selling/renting out for a larger home.....one small car payment, no debt and are able to save fairly well in our retirement, college and emergency savings accounts while still living well and taking vacations.

I recognize our lifestyle will change with another kid and a larger mortgage ($3500/$4000) and am prepared for that.

But when I think of $40k plus a year on daycare costs, I start breaking a sweat! I think (hope!) we can afford it, but are we spending too much?  We are happy with the daycare and DS loves it so I would prefer not to move and find a cheaper option.

And at what point do you consider just hiring a nanny?  I dont know what they go for in this area but I imagine $50k++ and employment taxes, etc.  Its likely out of the question, but I am always curious about what the breaking point is on daycare vs. nanny.

Thank you!

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