Reply to Does anyone have a HHI less than 100k?

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[quote=Anonymous][quote]PP with the budget. I know how much daycare costs, as mentioned I am ignoring it for now. Also, that budget is only 42k year, so there is still room for daycare if absolutely needed. But, at what point is income greater than daycare costs, 40/50/60k. [b]At 30k it is a no brainer that parent should SAH[/b], the benefits outweigh the costs in my opinion. Even 40-50k if spouses income is near the 90-100k+ mark[/quote].

I don't know that that is always true.  An income of 30K would probably net ~23K at the most after taxes, probably more because people at the lower income scale qualify for the childcare tax credit, dependents, if you put anything into retirement that is not taxable, possibly even the EITC depending on how much the spouse makes.  If you have one kid in daycare at 1200 a month, that leaves 8600-10,000 in additional income from working.  If your spouse is only making 30/40/50/ even 60K, an extra 8-10K per year goes a long way toward helping out with rent, food costs, etc.

Additionally, often times, people are not going to make 30K forever.  If it's a graduate school stipend, a fellowship, a paid internship, some lowly paid entry level job for a competitive field, etc. your earning potential is definitely going to increase over time, and the 30K might be temporary.  If two people are making 30K with a baby and paying for daycare, it won't be a luxurious life, but still leaves enough left over for bills.[/quote]

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