I'm calling it my "raise"- when DS starts kindy at the end of August our childcare costs will go from $1300 a month to $350. WOOT! We promised our friends we'd get a babysitter and actually go out to eat with them to celebrate- instead of us cooking for them at our house so we can save the cost of a sitter. And DH and I have some major remodeling projects we've put off. We may upgrade some furniture that we've had since college. We still don't have a bedroom set- just a mattress and frame and some crappy mismatch ikea dressers. I might even splurge on a once a month house cleaner. I'm tired of living in squalor!
By January 1 we'll set up a plan to start contributing the excess to our retirement accounts and student loan debt. But until January 1, I'm going to just enjoy spending money. Excuse me while I go play with my calculator some more...
Re: S/O: what are WM doing with your childcare "raise"?!
DS starts kindergarten this year, too, but I don't think our childcare payment will go down much at all. Between paying for full day kindy and after care, plus all those days off and vacations, it's going to be pretty close to what it is now, I think. Next year!
But we are boring, and will just put it toward retirement, paying down student loans, a new car fund, and all that fun stuff. I want to talk about getting someone to come in and clean, but I doubt that will happen.
Given that I am pregnant with #3 now, our "raise" is a long way away. However, being the type A planner I am, I have already given this quite a bit of thought and have the following ideas in mind.
Since by the time all 3 are in school our annual savings will be close to $25k (we plan on sending the kids to private school with tuition and are also factoring in after care and summer nanny costs), we will be shifting most of that right into their college savings. We save $250 per month per child now, and will bump that up to around $650 per month per child. We will also pad our next house savings, as my goal is to save a large enough down payment for our next house to only have a mortgage similar to what we currently pay on our 15 year mortgage and try and pay it off early so that the house will be paid off by the time the kids are in college.
For us--the savings will likely only be "short term" as we live in a big city and will likely need to pay for private high school tuition, which is about the same as what we pay in day care. Unless our kids test in to the really good college prep schools--but they are practically impossible to get into.
Will baby #3 be another girl?
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After that retirement, then college funds.
We already have DS1 in extra activities, so while there will be additional for DS2, we do have some of the extras currently in our budget.
Our preschool was never terribly expensive. With DS going to a private school for kindergarten, we'll actually be paying more :-(
However, now on my off days, I'll get to get those to myself! And I know exactly what I'll be doing!
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
It's a ways off for us, but the current plan is to use that money for extra savings, and of course if kiddos are into expensive hobbies/sports some may go there. I'd like to allow them opportunities to do fun things if we can afford it. So hopefully some cool family vacations too.