How much extra?

djm31012 · January 2014

Just curious....how much extra money above what childcare costs would be enough to warrant you working? For reference, i live in a HCOL area. I bring home about $1k more each month than what child care costs, which does not even cover my property tax bill each month. I am wondering what others think is worth it to make them keep working instead of stay at home. Of course this question doesnt pertain to those who want to work, mainly just those who would choose to stay home if it made sense to. And separately, do you think its worth taking a job if you are just breaking even after childcare, knowing that within 5 years your child would be in public school and you wouldnt have to pay for childcare anymore?

iverske9 · January 2014

For me it isn't about how much money but long term investment. So does staying at the job now even if we just break even mean more money in the future? Daycare even though it blows to pay is only temporary and when the kids go to school the money coming in would be a huge influx of cash and hopefully by then the experience, and resume would look amazing. So I personally would only stay if there is growth and potential for the future as opposed to just the number.

emberlee3 · January 2014

There are many things to consider beyond salary. Benefits, retirement investments, job satisfaction, career achievements, networking, staying current in your field, etc. I make plenty of money, but DH chooses to continue working because of several other reasons above. He doesn't clear much after daycare expenses.

To your second questions, I am sending DS to public kindie next year, and to be honest, I don't think our childcare expenses for the year overall will be that different. There are holidays, half-days, and vacations where I will need to hire a sitter or put him in camp. There's definitely no "huge influx of cash" heading our way.

Edited: incomplete sentence

cecilyandgautam · January 2014

I compare childcare costs with our actual salaries, not just take home, because all the stuff that's not getting deposited into our checking account is still worth a lot to us - retirement contributions, health care premiums, social security . . . I also count the childcare costs against both our salaries, not just mine because (1) I have greater job stability (2) some years I make more, some years he makes more so it's not clear who would stay home if that was necessary (3) I have no desire to SAH full time and neither does he, so the childcare costs are really for both of us.

All that said, I think if I didn't at least break even, I'd consider going part time. But if I broke even plus I got my retirement contributions, I'd still consider it worthwhile to continue. I'd also be more inclined to reconsider our childcare selections before reconsidering my decision to work - for example, at two kids an au pair + part time preschool is about the same cost as two kids at a center for me. At 3+ kids, an au pair plus any part time activities is definitely the cheapest option. I wouldn't just assume cost for one will be doubled when #2 comes along or tripled with the 3rd comes along - there are a range of options, at least in our area and the marginal cost of each child in care really decreases after a certain point.

jf198400 · January 2014

I am in the work because I Have to camp, not because I want to. I've been a WM for 3 years and our financial situation has changed several times due to changing childcare arrangements several times and also adding a 2nd child. DH's salary has increased substantially in that time, whereas mine has been more typical adjustments for inflation. Right now, after taxes, 401k, and daycare I am bringing in roughly $1300 a month. We are putting most of that directly into savings for our next house.

We are TTC baby3 and I am hoping to SAH mom then. Financially it would still make sense for me to work b/c it would only be 1 year until DD went to kindy. But it is a lot of stress on me working since DH is gone very long hours and most of the housework and childcare falls on me. I have always wanted to SAH, so if we can make it work on DHs salary than we will. I am not satisfied in my career and hope to go back to school when all my kids are in school so I can make a career change eventually.

jlaOK · January 2014

For me I would like to bring home at least $500 after retirement contributions but would be willing to break even for a short period of time depending on how I liked my job and how easy/hard it would be to re-enter the workforce after a gap in work.

I work part-time and bring home <$2000 per month before retirement (all my retirement is post-tax). I have my dream job and count on daycare costs going down when my kids go to school (1.5 years for DS) and my salary going up. The short-term sting is worth the long term goals.

dizzycooks · January 2014

I guess about $100 month in cash since that's what I'll be making after DD2 goes to daycare, but I also have retirement credits and a retirement match that keep me at my job since those can't just be made up. Oh and my dental coverage, I get that too. Yahoo. That said, I choose to send DD to an expensive center and haven't found another arrangement I am equally happy with. We had a terrible experience at another, much cheaper place and I don't want to do that again.

djm31012 · January 2014

This is all very helpful and great things to consider. Thanks guys!

mae0111 · January 2014

About half of my net monthly income goes to child care. DH and I make about the same - he makes a bit more salary, my bonuses are more. We are both continuing to climb the ladders in our respective careers. It's getting harder to coordinate schedules, our kids are seeing us less. We are both up for promotions this year, and if we both get them, things are going to get more difficult. I think it's going to get even harder when both kids are in school.

We are working toward one of us taking a step back. There are advantages and disadvantages to each of us stepping back, but I think I'm the only one with a real interest in possibly staying home. I will be giving up a lot, compensation-wise. But we feel it will be worth it for both of us. It's years off, but we have a plan.

SoMoNY · January 2014

5 year gap would kill my career.

5 years of not working also means 5 years I don't put money into 401k and the matching that comes with it. Also means 5 years not contributing to SS (assuming its still there when we retire).

tarynh75 · February 2014

Sometimes I think this is the only board where women are sane....thankfully there are a few other women in the world who like their jobs and enjoy working! Sometimes I feel Ike the only one, and like I will be a bad mother because of it.

thedash · February 2014

Well even if you only clear $1K that's a lot of money every month to either save or put towards things your family needs. We also live in a HCOL area and I think people tend to forget that it isn't easy to cut $1,000 out of your budget without cutting into your savings or other things that are important for your family.

How much extra?

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