After childcare costs, what % of your salary do you actually bring home?

erikaph · March 2011

Not including your DH's salary, just your own.

I'm thinking of going back to work full time, and I'm really just curious.........trying to decide what is reasonable to earn, after deducting childcare costs. Is 30% reasonable? 50%? What do most of you hope for?

My daughter is 3.5.

thanks!!

2-Step · March 2011

It totally depends on your expenses and how much of your salary you need. Also don't forget to take into account perks like health care, 401k, paid vacation etc. I know moms who literally work just for health care, but they enjoy working and want to keep their career on track. Almost their entire paycheck goes to day care, but it works for their family.

Currently, I only have one in daycare three days a week and it only cuts into my paycheck about 10%. Once DH goes back to 5 day weeks (he has one furlough day now) and we have our 2nd in November I will be bringing home more like 70%, so daycare will be 30% of my net pay. My DH carries all the insurance, flexible spending and our 401k because he has a better plan so my paycheck is doesn't suffer any deductions, which is why daycare doesn't make a huge dent.

hoping4sticky · March 2011

It was an interesting question, so I had to go figure it out. I've dropped down to PT and I work one day from home, so my DC costs are very low, but I'm paying 18% of my take home.

CBBB2010 · March 2011

I get 60% of my take home pay after daycare is paid for my 6 month old. The main reason I went back to work was because I make what I consider to be a decent amount on top of daycare costs. Now that I've been back a few months I'm enjoying work more and think I would still work for less than this if I had to. Of course, the extra money will help us have family vacations we wouldn't otherwise be able to afford, contribute to a college fund for DS, etc. I think any little bit helps.

ZacksBride · March 2011

daycare costs about 40% of my take home pay.

aocain02@yahoo.com · March 2011

About 17% of my take home but we pay a family member so our day care is reasonable. If we had to pay a center it would cost about 25% of my take home.

Halo79RN · March 2011

80% .... 20% for school. my kids go to a preschool MWF sept-may... and we get half off b/c it's the college preschool where my dh is on faculty.

MammaBear81 · March 2011

Just going off my salary I would bring home 60% after paying for our au pair. Some people want to work, and some people need to work, so it really depends on your situation, do you want to be a working mom, or do you need to be etc....

BeccaMarie · March 2011

22% right now

56% after #2 arrives

worleygirl · March 2011

75%. I wouldn't just look at monthly income though. Retirement savings (401K and pension) is a big thing for me and would be a reason for me to consider working if I wasn't.

trackchik6 · March 2011

I take home all of my salary - DH pays for daycare! We don't have joint accounts right now.

Tikat · March 2011

Thanks for posting this! Dh just got a job - literally overnight...Swift kick in the bum on Wednesday and he had a full time job by Friday...so now we are scrambling to sort out the situation...

With just one it's worth it to keep working...with 2 I'll probably keep 60% of my take home pay and dh will have his...now it's just the hassle of my loooooong commute and we both start work at 6 and 7am respectively so finding a Daycare has been a challenge...I think we'll hire a live in before I return from maternity leave...

lelekay · March 2011

Daycare costs are almost 50% of my paycheck (after taxes). But I also have a pension and excellent family medical insurance through my job....not small things! Even if it took 100% of my pay, I'd still probably work for those perks. Plus, I like my job.

Spenjamins · March 2011

A very small percentage. It is nauseating that it is always the women that are somehow working to pay for daycare.

luvmagoldn · March 2011

Very interesting post. I take home about 67% of my salary after paying the nanny. Health insurance, dental, 401(k) contribution (DH has his own 401), flex spending, etc all come out of my income too so that skews the take home number a bit.

CakeBatter · March 2011

Between gas and daycare, right now I take home 90%. When LO arrives, I will take home 10% (which is why I'm seriously considering SAH).

laurakaz13 · March 2011

Let's see. I put 20% into our retirement and about 8% goes to daycare, so I take home around 72% or my salary. I make about 70% of what DH does.

SportsLover · March 2011

Both my boys attend daycare 3 days per week. About 40% of my net take-home goes to daycare. However, I also contribute to both dependent and medical accounts, so that number is a little skewed and a little less. Even if I broke even each month, I would still work. Our benefits are great, I have a pension, and if I were to leave teaching right now, I'd probably not be able to find a job for many years and definitely not at my current salary.

I found it amusing when people would ask why I went back to work after having twins. Just the benefits themselves (beside the fact that I like my job) are worth returning. Not continuing to contribute towards retirement (if I were to stay home) would scare me.

kar5162 · March 2011

I take home 48% of my net pay after paying for our nanny and will take home very very little after #2. Combined we take home over 80%. DH makes more per paycheck, but I have better much insurance, also contribute heavily to my 401k, typically get higher bonuses, put the maximum amount possible into my ESPP and we run the FSA out of my paycheck so it's not really a fair comparison since there's a lot more benefit from me having a job than just the net take home pay after daycare.

JLS0320 · March 2011

Daycare is about 1/4 of my take home pay, sometimes more depending on aftercare costs

kirkette · March 2011

40% after daycare.

egeiger · March 2011

Daycare is about 15% of my net take home pay every month. But, I carry health insurance for LO and I, my life insurance, get a 401k plus match, a pension, a cell phone and gym discount...so its actually much less of my "income". My husband makes about 60% of what I make, so daycare would be about 40% of his take home pay.

LyndaCarter · March 2011

30% of my paycheck goes to daycare. I also cover the healthcare, 401k, and flex spending with my paycheck. DH just has his 401k coming out of his paycheck. I would not be working if I couldn't take home 30% or more of my paycheck after daycare costs.

Erin&Ryan · March 2011

For two kids at a center, its about 40% of my take home. That's after healthcare coverage, 401K, etc.

Mrs.Handy · March 2011

I take home about 80% of my salary and that does not include health insurance, 401K contributions, life insurance. Me staying home is not even an option. It would make much more financial sense for DH to stay home.

financialdiva · March 2011

DH pays for daycare. Stick out tongue The flex spending comes out of his paycheck.

But to answer your question- I take home about 80% after daycare cost. But the only thing coming out of my paycheck is 401K contributions, so the number is kind of inflated.

hiltyn78 · March 2011

I donate 22% of my income to my DD's daycare. 2 in daycare, i'd be down to taking home 47%. God it's depressing to actually look at these #s.

katieisawesome · March 2011

erikaph:
Not including your DH's salary, just your own.
I'm thinking of going back to work full time, and I'm really just curious.........trying to decide what is reasonable to earn, after deducting childcare costs. Is 30% reasonable? 50%? What do most of you hope for?
My daughter is 3.5.
thanks!!

Mine is approximately 9% BUT my DD is almost 7 so she is in school most of the day - the 9% cover before and after school care and vacations (including summer vacation).

KathrynMD · March 2011

Somewhere between 20-25% of my take home.

LJR 84 · March 2011

As of right now, about 26% of my take home pay goes towards day care.

With two, it will be 40% going towards day care.

madhatter2003 · March 2011

It is 100% of my DH's income. We live on my salary, he pays for daycare out of his PhD fellowships and teaching stipends. But he needs the experience so that is why it 'works' for our family. In fact, this semester we are paying for him to teach by the time you add up daycare, gas, etc and he's only getting $3K for his section he's teaching for the entire semester.

beckyTX626 · March 2011

My daycare when I return after leave will be about 24% of my take home, so 76% will be brought home. My take home is somewhat low based on total comp, though, as we get approx 20% year-end bonus, 100% 401k match (so I save 16.5k, they match 16.5k), free healthcare for the family, and they pay my pricey gym membership. Daycare as a % of gross monthly factoring all these benefits in is only 10%. When I look at it this way, I can't imagine why I'd leave this job, but I am pretty unhappy and am considering seeking out part-time somewhere in fall.

Bella427 · March 2011

When #2 starts daycare in the fall, most of my salary will go to daycare, but I don't really think of just my salary paying for it. I have a great retirement plan and healthcare for the whole family, so it still makes sense for us for me to work.

kcisthebombdotcom · March 2011

I take home 100% as I dont pay for childcare. I only work part time and I make my own hours at work which means that childcare is split between DH/my parents while I'm at work. Sadly, I'd be paying $500 a week to have both kids in daycare full time, and in working 17 hours I take home about as much as I would working a full time job. Plus, I dont have to worry about the hidden costs of working, like going out to dinner more, buying groceries on the way home from work since I forgot to take out something for dinner, dry cleaning costs, gas/car maintenance, etc.

With that being said, if working will make you a better mom, then I'd work even if you lost money by working. Some women arent meant to be SAHMs and it's better for the mom and kids if that person does continue to work full time.

duchess0727 · March 2011

Right now, I take home 70% of my paycheck after taxes, health insurance and 8% contribution to 401k. Once we have to pay for 3, it will be 54% but that will only be for 9 months and then DS starts kindergarten and it will go back to about 70%. I would work even if it were less because the health insurance, life insurance and retirement benefits are great, plus daycare costs are temporary. The kids will be in school in a few years.

tosababy · March 2011

Why are you comparing it to your salary and not your husband's?

Our daycare costs are only 10% of my take home pay, but some of that is reimbursed by our dependent care FSA money too.

That analysis also doesn't include all of the benefits I receive through work, and that take home pay is after maxing my TSP contributions, dependent care and health care FSAs and health care benefits for the family.

megann831 · March 2011

I bring home 75% of my salary after I pay the babysitter

lasa4641 · March 2011

I work part-time and my DS is in DC 3 days a week. Based on my part-time salary, DC is about 25%, but if I worked full-time, it would only be about 10%.

jf198400 · March 2011

Right now my mom watches DD for free, but in June we will start paying for DC. Then it will cost 32% of my net pay. After taxes, 401k contributions, and DC, I will only be bringing home 42% of my salary. I would not work if I didn't need the money.

ai&Jas · March 2011

I pay 18% out of my salary for daycare and I also cover our family's health insurance. I also make almost double my husbands salary. Next year we will be paying almost $30K in daycare (31% of my salary), but we'll still be bring in 80% of our house hold salary and to be honest with you I do love working and would not consider staying at home full time.