Reply to Can A Family Pay $1000, a week for Nanny one Baby?

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Reply to "Can A Family Pay $1000, a week for Nanny one Baby?"

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[quote=Anonymous][quote=Anonymous]I am wondering if OP is from another country where it is more normal to have in-home workers.

My mom had her first babies in the 1950s and also had this idea that I could find a nice retired lady from church that would come in for part week at a reasonable rate, as that's what she did with her first babies.  I think those ladies worked for "pin money" and also just because they liked babies.  But that's not hte world we live in.

$1000 a week seems low to me, because you also have to play employer side taxes, workers comp, and unemployment insurance.  It definitely cost us more than that.

Thinking about it as a straight percentage of your take-home salary is not really the best way to analyze iit, from a financial perspective.  Take a woman that makes $80K after taxes and is paying $60K for childcare -- she might say, that's not worth it.  But that $20K put in the bank and earning interest really is meaningful.  Plus, each year she is likely to get a salary increase (that likely will exceed the increase in childcare costs).  And, more imfportantly, she needs to think about her entire career.  If she stays in the workforce and her salary increases every year by even 2%, then after 30 years of working, she will have significant savings for retirement and her kid's college, etc.  If she takes five years out from the workforce, will she be able to re-enter the workforce at the same rate and in the same type of job, or will her alary be set back significantly?  This depends a LOT on the field -- historically, people like teachers and nurses could re-enter their professions easily and without much of a hit to their salary.  But for people like lawyers or doctors, it is much harder to re-enter after you've been out of practice for years.  You  have to think about your whole career trajectory, not just "gee, this seems like a lot of money to spend at this particular moment."

But I also agree that most working parents do not use a nanny, because it  does not make financial sense.  For some profesionals that work late with longer commutes, it may be the only viable choice though.[/quote]

So are the mom and the dad both paying $60,000? Because paying for care for their child is not coming just out of the mom’s salary, right?
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