I don't know why I like to torture myself. I calculated how much money I actually make after taxes and daycare (basing taxes on higher tax bracket b/c of me and DH). I do not currently get any benefits at my job (on DH's insurance) and not eligible for 401K until 1yr of employment. I bring home a whopping 38% of my salary. That is disgusting to me. No wonder there are so many moms who can't "afford" to work. I guess I'm "lucky??" I have a fairly high paying job.
So what percentage of your gross salary do you bring home after taxes and daycare?
Re: I did the math
TBH, I've never done the math but I will get a fully funded pension and I carry the medical benefits (which are very generous) and I'd work for the medical benefits alone because what's offered through my H's work is expensive and not great coverage.
Anyway, I had a few thoughts about your post: 1. Why are you only deducting daycare costs from your salary, IMO it's a household expense, same as car payment, mortgage, etc. so both salaries go towards the cost 2. 38% is a lot more than 0%, and you've admitted to having a high paying job, so say you make 100k/yr, that's 38k you're bringing in. Hardly chump change, in fact, that's many people's annual salary BEFORE any deductions. 3. Do you want to SAH? If not, then what does it matter if you're bringing home 10%, or 50%? I mean, it will never be 100% because taxes exist and if you enjoy working then unless it's costing you money it doesn't really matter. 4. Are there intangible benefits you're not including such as fulfillment of long term career goals, adult time, etc.?
I'm a little puzzled that you find 38% to be disgusting. That seems a very strong sentiment. ::shrug::
I'm still posting here because I'm technically still employed until the end of July. I am staying home next year though ("year" because I'm a teacher...school year.) Daycare expenses for two would leave me bringing home $200 a month. It just wasn't enough to justify working and I want to stay at home with the kids. I'll go back when they are in school or when we just have one in daycare. It does seem sad when your take-home pay is less than half!
Totally agree with this. I don't understand at all why women deduct the entire amount of daycare when doing this deduction (as if it is soley their responsibility). It is a household expense just as the mortgage, utlities, vehicles, etc.
Another pet peeve is when women foolishly don't recognize or consider that 401K money that is being deducted and not part of your take home. It is still YOUR money. You are taking it home just not every month and it is often matched by employers at a rate far higher then you could make investing money. Don't discount the financial security earning that money gives you and your family now and in the future.
I honestly am not even sure how I would calculate childcare in my situation since we don't pay my parents to watch DD, but they live with us so we pay the increased expense of food, utilities, cable package (parents request), occasional thank you gifts etc.
It doesn't matter to me though because I don't want to stay at home and I know I am not paying to work.
MH is the one who makes the least between the 2 of us and if we had 2 in day care it would suck up 72% of his "take home pay" (We currently only have 1 but we'd like to have another).
That is 28% of the sum he brings home after taxes and after he contributes to a retirement fund and health care and dental for our whole family.
Though I make much more than him, the benefits at my job are not very great, plus my company is one of those that has been playing with the idea of not providing coverage for spouses next year.
Sorry I should have stated up front that I would much prefer to SAH than work. I am not receiving benefits or 401k from my company, and do not feel all that fullfilled in my career. I do look at daycare as coming fully out of my salary b/c I hope to eventually stay home, as soon as we can manage without the income I do bring home. I guess 38% is "disgusting" to me, b/c being a working mom causes me a lot of stress and disappointment, and I feel like I'm barely getting anything out of it.
I'm at about 30% after taxes, nanny and 401k. The amount my employer matches is minor (maybe 3 percent), but I do put in a little extra. If I take 401k out of the equation, it is about 34%. However, I have a nanny (as opposed to daycare) so my cost is higher than the typical person and DH's income alone puts us in the 2nd to highest federal tax bracket so everything I make is taxed at a high rate. However, we have no state income tax (just property and sales tax) so I also may be lower than some other ladies.
Unlike others, I do see the point of including childcare cost in the equation because I know for me personally that if I didn't work, I would not have this expense. If it were just an issue of finances, I absolutely would not continue to work because the little bit I make does not affect our standard of living and we are well capable of not only living, but also saving money on DH's income. However, I also feel like that if I left my field for several years, I would have a very difficult job getting back into my field. Also, I don't think I would be happy being a full-time SAHM.
2011: FSH 13.3 & E 99; AMH 0.54 2nd FSH 6.2 E 40's AFC: 8
BFP from Clomid/IUI ~ Pre-e and IUGR during pregnancy ~ DS born 9/4/12
Feb./March 2013: AMH less than 0.16 (undectable) and AFC = 4;
BFP from supps ~ DS#2 due May 2014
May 2014 January Siggy Challenge:
This. I occasionally calculate "take home" pay for both DH and I, and in each case I calculate out the full cost of childcare and then add in the cost of a traditional preschool, because if either of us stayed home, that's the amount by which our household net income would decrease. That's just accurate math. (And yes, there are other factors in that calculation too -- 401k employer contributions, likely raises during the period of "unemployment", the re-entry penalty that we would have to pay when returning to work, etc).
That makes sense to me. That's how I feel too (generally). I would much prefer to stay home at least for a few years while I have to pay our nanny a crapload. I take home 50% of my pay and it depresses me too. I've also done the math and I just can't afford to stay home right now. Anyway I totally get what you're trying to say OP.
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Awww, OP I'm sorry you're feeling down
After my 401k (10% contribution) and taxes (DH carriers our insurance), daycare for two leaves me with 52%. It works for me because I don't have a desire to SAH. If I did though I'm sure it would be tough for me to mentally deal with the thought of working when SO much money is being used on childcare.
DD #1 passed away in January 2011 at 14 days old due to congenital heart disease
DD#2 lost in January 2012 at 23 weeks due to anhydramnios caused by a placental abruption
18%, but that is after what I take out for retirement (22.5%), taxes, and daycare. I'm very happy working 33hrs/wk. I'm not interested in SAHM no matter what the cost.
ETA: recalculated, it's actually 24% working part time. I'm not going to bother figuring out what it would be if I went back to FT.
I do not count the money that goes into my retirement plan (20% of my base salary) as lost money. It is mine. I also do not deduct daycare just out of my salary. DH and I both work.
Regardless, I work because I love my job, have a fully funded pension and will be able to retire at age 50. If I alone paid for daycare, then it would be less than 10% of my take home salary.
If I paid for Daycare I would be bringing home 75% of my salary after tax and daycare, BUT my daycare is unbelievably cheap for this HCOL area AND it's not full time because DH works nights so we only need about 25 hours per week of care. If DH paid for daycare it would take up almost 50% of his salary after taxes (but he carries our insurance and FSA account)
Our mortgage is the one that scares me, it takes up 75% of my salary after taxes, and DH's work wouldn't even cover our mortgage if I lost my job. When we bought the house (2007) we both had much higher paying jobs and either of us could cover the mortgage, and then some.
DC will cost us (after our second is born), approx 1/4 of our gross income 1/3 of our net (combined).
I only have 401K taken from my paycheck and basically I could pay DC on about 1/2 my take home each month.
DH carries the insurance(his is better by far), and has 401K taken from his checks, - if DC were taken out of his checks, he basically works to cover DC, gas, insurance and his 401K contributions.... now that stinks!
I agree with others--day care and full day private school tuition are household (both income) expenses, but for purposes of the exercise and my own curiousity I calculated it. I also have to remind myself that there are plenty of less expensive options for our DD#1 for preschool--we just felt strongly that the one we chose is the best for her, even if it means paying a pretty steep tuition. Once she starts full time K in 2014, the cost will be half. But--I am pregnant with #3, so that savings will be eaten up by baby #3's day care costs. So next year it will be even higher. I just keep reminding myself that this is temporary, and in 5 years once they are all in school (even private Catholic) we will be swimming in extra cash (HA!) compared to what we are paying now. Good early child care is expensive, no two ways about it.
Before my annual bonus factored in, after DC/tuition for two and taxes is 38%. When I factor in what it will be next year with 2 in DC and one with private tuition, it is 24% (depressing, but still would not change my choice to work).
After my annual bonus is factored in, after DC/tuition for two and taxes is 46%. When I factor in what it will be next year with 2 in DC and one with with private tuition, it is 33%.
However, if I look ahead a few years, when all are school age and also including costs for after care and a summer nanny, and even while factoring in no increase to my pay, we will be at 72% without bonus and 76% with bonus.
Will baby #3 be another girl?
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I'm sorry you feel stuck working in a job that you don't enjoy. Since it sounds like you can't change things at this moment, I would try to focus on the positive that 38% is giving you, so extra savings, or whatever.
And perhaps work out why being a WM makes you feel stressed and disappointed to see if there are places you/H can adjust to make life better. Because it's not fair to you to be miserable every day.
I can see if you are looking to SAH why you'd consider DC only from yours, but there will still be expenses related to children for things like trips to the zoo, play dates, preschool, etc. Granted, not as much as daycare, but it's not like they will never incur expenses beyond food/clothes. If I were to SAH I'd definitely need a budget for fun outings, because I'd go coo-coo stuck at home with no money to do anything. And then as kiddos get older they do sports, band, etc. Always something lol.
Anyhow, I'm sorry you're feeling like that 38% isn't worth the negatives of your current situation.