$ you bring home after paying for childcare...?

mobiz

i am not asking for dollars (unless you want to volunteer) but i'm just wondering if what you make after paying for childcare makes your working 'worth' it.

i'll preface it also with this--if you LOVE your job and want to work regardless, then i would figure you could break even and it wouldn't matter.

however i don't love my job and am working purely to bring in money....right now my childcare costs for just DS are about 33% of my take home pay so i still bring home enough money to make it 'worth' it to me. but the cost for two kids (DS in preschool and infant in daycare) seems to be working out to cost 100% of what i make. so i'm struggling to figure out what to do after this baby is born.

obviously i would never ask people what they make, but i am always just curious where other people fall in this situation.....

jlaOK

Right now, I work part-time (3 days a week). Daycare for DS is 25% of my take home pay. This isn't too bad but we are thinking of TTC for #2 which means daycare would be 50%+ of my take home pay. I'll probably increase to working 4 days when this happens but even if I didn't it would still be 100% worth it for me to work. Not only do we need my salary to pay bills, but it also gives us the flexibility to do things like save for our kids college. Also, when all the kids are in school full time I will have been working continuously in the industry and won't have trouble going back to full time if I want.

OrangeSmoke

I have 2 in DC and they eat up about 1/3 of my TAKE HOME pay.

With baby #3, I expect that'll go up to 1/2.

But there is a lot more to my job than the take home pay.  Even setting aside the love of my job, there are benefits, 401k, bonus, etc.

 

madamsmurfette

DD's daycare is about 45% of what I bring home after taxes, 401K contributions, and benefits. To me, that seems like it isn't really worth it.... except, we need that 55%. Also, we are on my medical coverage, which is a big factor. If I didn't work, we'd have to be on DH's, which is more expensive and covers less.

mrambo3

Right now DC takes up 1/4 of my take home pay. We're talking about TTC#2 and DC would then eat up 55% of my take home pay.  Even if it took up all of my pay, I would still want to work. Like PP said, there are other benefits like bonuses and 401k contributions. Plus, I love being in the working world. 

Raspberry807

SO is a SAHD because the job market in his industry is so bad here he's not been able to find a job to make paying for daycare worth it.

Things to consider:  If you quit, will you still be saving for retirement?  Do you carry the insurance?  Will you be able to, or do you want to be able to pick back up in your career when LOs are in elementary?  While I would rather be home with my kids right this second even, that would weigh on my decision to quit a job to stay home.

madhatter2003

Raspberry807:

SO is a SAHD because the job market in his industry is so bad here he's not been able to find a job to make paying for daycare worth it.

Things to consider:  If you quit, will you still be saving for retirement?  Do you carry the insurance?  Will you be able to, or do you want to be able to pick back up in your career when LOs are in elementary?  While I would rather be home with my kids right this second even, that would weigh on my decision to quit a job to stay home.

I agree with this, especially the bolded. I mean, while DH was teaching as an adjunct we were actually paying money out each semester when you looked at what he was paid vs what he brought in. But it was necessary for his career/growth. I wouldn't compare it to just money, I'd look at ALL of the factors that go into working...insurance, the chance you'll want to work later and be competing against those with no gaps, new technologies, 401K matches, etc.

SmileandLaugh

I make about half of the daycare cost. If I were you I would look for a babysitter for both of your LOs.

Matt Dvorak

yes - definitely worth it with only one kid, and that's all we intend on having. Would also definitely be worth it with 2 kids, and when you consider how much I put in retirement I would also say it would be worth it with 3 kids in daycare, even though that would be most of my take home (well, at the infant rate, I don't know what it would be considering 3 kids of different ages). 

Fianschneid

DD's daycare is about 20% of our net income. Since DH and I bring home approximately the same amount, it wouldn't make sense for one of us to stop working and lose 50% of our income.

skyejo

Right now it's 30% of my take home pay.  When #2 gets here it will be 50%.

But that's my take home--you have to factor is 401k, benefits, etc.  Plus daycare is a sort term situation.  Your LOs are going to be in elementary school before you know it and your full day daycare costs drop to just before and after care.  I don't think you can look at just the current effect of daycare tuition on your salary.  You need to take into the account the cost in the long run--if you stop working and try to get in the workforce later can you? Will your salary suffer since you missed many years to SAH?

mungova1

Daycare for 2 will be about 61% of my take home pay, and sadly I make decent money. We are really struggling with the working/staying home thing right now too. I agree with the PPs that there is more than just money right now, but there is also quality of life to consider (this is what my husband keeps bringing up since I'm not one scared to quit since I will still bring in money)

Good luck in whatever you decide. I know this isn't an easy decision.

JPLbrideRevised

Daycare for an infant and a school aged child takes 33% of my take home pay, which is why there is a four year age gap between them.  I also provide insurance coverage for myself and both children, so that should be included in the figure.  I'm not that happy in my current position, but I'm unsure of what direction I want to go in my career.  Should I go back to school for my MBA or change career paths altogether.  Until I figure that out and the economy improves then I'm staying right where I'm at.

KathrynMD

don't forgot to consider the income you will lose by not working for several years and the retirement income you won't receive if your employer contributes to a pension or 401K type plan for you.

How long would you conceivably want to SAH? Would you be able to hop right back into a similar position at your current/similar salary?  Will the idea of staying at home is appealing, there are alot of opportunity costs that need to be considered too.

kcisthebombdotcom

To offer a different perspective, if you feel like you're not really gaining anything financially from working, don't do it. When my son was born, I took a job working 15 hours a week. I was lucky enough I could do it in my own time so I avoided the cost of daycare.

When I look at the $500/week I'd be paying for 2 in daycare, the costs for dry cleaning, the costs I paid in commuting (gas/car maintenance) plus now I'm only a recreational driver so my car insurance is cheaper, I'm home so I can meal plan and shop sales so I only spend $60/week to feed 4 as opposed to the $200 a week we were spending on just the 2 of us between groceries/dinners out, no one taking days unpaid because of sick kids, etc my take home income from part time work trumps what I'd be making full time.

Of course, just because it doesnt work for me will mean it will work for you. My income isnt needed and we still can put money away in retirement/emergency fund/kids future with my DH's income alone. I know not everyone has that luxury, so you need to take that into consideration as well. You can always waitress 2 or 3 nights a week or work a retail gig for extra cash and avoid daycare if you need some money coming in. It's not always career suicide SAH as long as you continue to network/further your education in your field.

GL with whatever you decide!

saraboston

Since I reduced my hours, DC is close to 1/2 my paycheck, but I have a substantial amount going into various retirement accounts, so it's not really a fair estimate since I'm still "taking home" that $ in a sense.

Mags748

Before DD was born, it was 21%. Now it is 50%.

Daycare costs were one factor in why I decided to go back to school for nursing before having another child. Daycare would have been about 80% of my pay.

jenny2508

Right now I pay for a babysitter who is a family friend so daycare is only about 15% of what I take home.  Starting in September daycare will be about 25% of what I take home.  I do not really have a choice because I am a single parent, however, I have many friends who feel the way that you do.  Have you ever though about working part time?  Sometimes I think it is great for children to be around other children, so maybe you could just send LO 2 or 3 days a week so that he could get that social interaction.  Good luck with your decision! 

jlsimon56

madamsmurfette:

DD's daycare is about 45% of what I bring home after taxes, 401K contributions, and benefits. To me, that seems like it isn't really worth it.... except, we need that 55%. Also, we are on my medical coverage, which is a big factor. If I didn't work, we'd have to be on DH's, which is more expensive and covers less.

This is us too, except daycare is 55% and my take home is 45% after everything else gets taken out.  Ironically, my work is 100 miles round trip, so gas takes another 30%, so I'm really only taking home around 15% - arg!  Haha.  We need that money though.

KL777

KC_13:

To offer a different perspective, if you feel like you're not really gaining anything financially from working, don't do it. When my son was born, I took a job working 15 hours a week. I was lucky enough I could do it in my own time so I avoided the cost of daycare.

When I look at the $500/week I'd be paying for 2 in daycare, the costs for dry cleaning, the costs I paid in commuting (gas/car maintenance) plus now I'm only a recreational driver so my car insurance is cheaper, I'm home so I can meal plan and shop sales so I only spend $60/week to feed 4 as opposed to the $200 a week we were spending on just the 2 of us between groceries/dinners out, no one taking days unpaid because of sick kids, etc my take home income from part time work trumps what I'd be making full time.

Of course, just because it doesnt work for me will mean it will work for you. My income isnt needed and we still can put money away in retirement/emergency fund/kids future with my DH's income alone. I know not everyone has that luxury, so you need to take that into consideration as well. You can always waitress 2 or 3 nights a week or work a retail gig for extra cash and avoid daycare if you need some money coming in. It's not always career suicide SAH as long as you continue to network/further your education in your field.

GL with whatever you decide!

 

I agree.  SAH is not career suicide.  I was a SAHM for 3 years and was very blessed to get back into my career when I needed to.

FriskyPanda

DD is almost 5 now.  Her daycare is 19% of my net.  

hoping4sticky

I've dropped down to PT (24 hrs/wk) but to make the situation work I still pay for FT daycare. I'm paying 25% of my take home now and it will be 50% with #2.

Currently I am loving PT and have no plans on changing in the near future. I would have a difficult time being a FT SAHM and DD loves daycare and learns a lot. I also feel like I get a good amount of time with her and I have a good work/life balance. I would consider upping my hours some if I could work fully from home. I currently work 1 day at home and 2 days in the office and it is a 2.5 hour daily commute.

FancyFrenchie

DS goes to pre-K, 9am to 1pm every day and my MIL watches him the rest of them.. The cost of all that is about 10% of my take home pay. We pay considerably less than the US!!

sabrina69barnes

I WAH doing daycare/ preschool. I watch two kids plus my DS2 during the day. I don't get paid much at all when you figure out how much I make hourly but I don't have to pay for any childcare and I get to be with my kids all day. I would say it's worth it. With any other job I would be bringing home what I do now if not less.

jellyjellybean

1 infant and kid in preschool full time would be 75% of my take home pay...I just did the math and that's really depressing I however have our medical insurance, am contributing to a 401k, etc.

Right now my mom watches DS 2 days a week and when #2 arrives DS will go to preschool full time and she'll watch the baby 2-3 days week so maybe it'll be closer to 60%? We are currently looking for cheaper preschool/daycare options that will hopefully reduce that even more.

UsedToBeGoldie

i work a job share (part time) 2-3 days/week (alternating)... and after daycare the only thing I bring home is my bonus and benefits (which include a company car, so that's huge)... My entire base salary goes towards daycare - for NOW.  Next year I'll bring home a decent amount every month after daycare b/c DS1 goes to K.

I have continued working so I stay in my career and don't have to fight to get back in if i was to stay in longer and wait till all are in school... i also like workign- but love my situation being part time b/c i get more time with them + a career, too.

kje120

Our daycare is about 23% of my take home pay so it's totally worth it.

cbee817

DD only goes 2 days a week (my mom watches her the other days), so our day care expenses were only 10% of my take home pay in 2011. Even with 2 kids there 2x a week starting in September, it'll be 25% at the most (taking into account an overall rate increase and that the baby daily rate is more than the toddler daily rate).

ksyknelvr73

DC is 27% (if we're going to get technical) of my monthly paycheck, which makes it still "worth it" for me to work. His rate should be decreasing VERY soon once he fully transitions into the 1 year old room (they are working on it now), and I am supposed to be getting a raise in June, so it will prob go down just a little but I'm sure not THAT much. When we have a 2nd one, I have no idea if it'll still be worth it to work. Two kids in DC is expensive.

McSquishy

Daycare for my three (including one who is school age) is 75-80% of my take home pay.  I also don't have insurance and barely fund my retirement.

 

Why am I working again?  

katie4253

50% of what I make.  The other 50% pays all of our rent and most of our utilities. 

kyethra

If i get enough hours and a low enough student loan payment (lots of years in grad school), then I should break even on that and daycare with nothing else.  But I make very little and am putting in supervised hours to become board certiffied in a couple years then I will make more.

KristiJean427

My babysitter is 27% of my take home pay, but DD only goes 3 days/week (hubby works Wed-Sat, so he takes care of her Mon and Tues). If she went full time it would be closer to 40% of my take home. However, I'm a teacher so this is only the case for 9 months of the year.

While I would love to be a SAHM and to have a second child I don't know that this will ever be a reality for our family. Hubby was out of work on and off last year for chemotherapy, so his pay was quite variable between short term disability, unpaid time off when the sick leave ran out, and long term disability. While he is now in remission, the 'what if' is still a little too close to home and the medical bills for both him and DD's delivery are just now close to being paid off. Additionally, I carry the insurance for DD and the my 401K contributions were too important to give up right now. However, we can't afford two kids in full time daycare and I'm old enough now that I don't know that we can wait until DD is in school to have another.

jenny1980

In additional to factoring non-salary aspects of compensation like retirement and health insurance, it's also important to consider the impact of SAH while your kids are young on long-term salary potential and career growth.

The odds of stepping out of the workforce for a few years and picking back up at the same level and salary are not great. Many people are surprised by this reality once they're ready to go back.

 

jteneback

Yes, it is worth it financially for me.  But even if it weren't I would consider benefits and my job prospects once LOs start school when doing the calculations. Women taking 6-10 years off are definitely hurting their long-term prospects.

doctorwhofan82

DC is 19% of my take home pay so it is more than worth it to work, not to mention the added benefits like health care, 401K, college savings, etc.  We are going to soon start TTC #2 and at that point with both in daycare it would be 34% of my income accounting for the sibling discount on the lower cost age.  Still worth it.  However, for me personally, if I ended up breaking even I would stay home in a heartbeat.  That is just me though and everyone needs to do what works for them.

doctorwhofan82

jteneback:

Yes, it is worth it financially for me.  But even if it weren't I would consider benefits and my job prospects once LOs start school when doing the calculations. Women taking 6-10 years off are definitely hurting their long-term prospects.

A really good point. 

erstwhile+maven

Childcare for DS and newborn DD equate to 63% of my take home pay.  And appx 50% of DH's take home pay.

iluvmylab

I work FT (HS teacher & soccer coach) and if I figure out my daily rate (salary divided by 187 working days for a school year), then I I can make in less than a week what an entire month of daycare costs.  So working definitely is still bringing in money.

Mrs.V

Child care takes up 25% of my take home pay

LaRue86

Our daycare costs are 64% of my take home pay. However, with benefits it ends up being less than 20%. By the time we have No.2, the major financial benefit I have now will be gone (free college tuition, both DH and I will be done in December). With that said at my current pay it would not longer be prudent for me to remain in my position. I will transition to being a WAHM then.