another question on childcare

[Goldy1]

Ok so we have a thread going on childcare. I know childcare is a huge issue economically and the books I have read implicate it as a big hassle for working familes also.

Ok so my question, how much money does a parent need to make in order fo childcare to be "worth it" in lieu of staying home? I guess it would depend on spouse's income, taxes, etc etc, but is there a rough figure? lol

[Cylenchar]

I don't think it's just income. Like with my coworker, insurance is the real reason she is continuing to work, not income.

[MonkeyMama]

Too many factors - just depends.

For us, $40k income was not worth it. The first 3 years anyway. (Expenses mostly being taxes - income and social security - and daycare. Not to mention paying more for convenience and the commuting costs and other expenses of wotking). The benefits are far more than financial. I also can't put a dollar value on how much more I am paid because I am not a typical "distracted" working mom. From my own office I see I may be paid $20k more per year because I can take on much more and am always available for clients, etc. A lot of my dual-income household working mom friends have stagnated at a much lower pay point. The ones I worked with were terrible employees though. Not to say all working moms are, but these ones certainly were! But I am not sure how you can not be when your spouse is working too.

We've talked about my spouse returning to work once the kids are both in public school. But then you look at the logistics. I don't know. I have a flexibile schedule AND he could maybe get part-time work while kids are in school. But no idea what to do with the million days the kids get off school. OR sick days. & on and on and on... we don't live close to any family. I imagine we could do it if I cut back my hours or if my work suffered greatly. Not sure it is worth it!

[kilapapipa]

I agree, too many factors. We have family here and both of us are teachers so days off from school are family vacations. Also, retirement being interupted vs. daycare was a concern. At times, with two in daycare and preschool, it was eating up half of one income but keeping a teaching postion here was important also.

[Goldy1]

I see, yes. 40K yikes. The kids do get a million days off and I also don't have a parent nearby enought to dump a kid on. My folks live an hour away , work, and run businesses etc.
I have worked in the schools and between vacations, holidays, half days, summers offs, records day, it would be quite hard to work around that without a free grandparent and a huge hassle. I just might have to go back to working in the schools lol nice possible option for me later.

[zetta]

As another data point, at the $80k level it seems to be worth it financially. I work 20 hr/wk as a software contractor, and this year I grossed $80k, of which about $16k went to takes and $14k went to childcare, giving us a net gain of $50k.

I figure if you're paying $12/hr for childcare, you break even tax-wise if you make at least $15/hr (20% going to taxes). You have to figure out your extra expenses from working to figure out how much more to get a true break-even.

Working does not add much expense for me. When I was a SAHM, we still kept the 2nd car, I lunch ate out more often (lunches with other moms and keeping in touch with old coworkers), and drove just as much (for playdates and mommy and me classes). I also work in an industry where you can wear jeans.

[disneysteve]

Originally Posted by Cylenchar

I don't think it's just income. Like with my coworker, insurance is the real reason she is continuing to work, not income.

True. There are also personal reasons. I know quite a few women who have said that they would go out of their minds if they had to stay home with their kids all day. Some women work because they want to, not necessarily because they have to financially. Even if they don't end up keeping a whole lot of their income, they still work because they don't want to be with the kids all the time.

[mom-from-missouri]

What dh and I did when we married was take the amount I was earning at my job at that time (which I had for 20 years) and subtracted off the following:
cost of childcare
cost of my fuel to and from work 87 miles one way
cost of wear and tear on my car driving the extra miles
cost of the increase in our auto insurance because I would be driving further
cost of extra meals out
cost of my work clothing & cleaning

Then, our tax person pointed out that if I kept my same job that I had before our we married and commuted, it would put us up a tax bracket, so higher taxes would come into play. I also would be driving 90 minutes one way and be gone from home 10-14 hours a day, depending on what shift I had.

Then, we also started think, we would have to pay someone to do the mowing and help with the haying and do the morning farm chores. Also, during the summer we would have to hire someone to take the kids and their pets/horses to the 4H fair, and horse show. Then you factor in the times that both DH and I would be working on days of programs, holidays and such.

For us, it wasn't worth it. After we did the math, we realized that we would almost break even, but still be paying taxes on it.

Then there is the personal side of it. Your kids are only kids once. Is it worth missing their childhood for a second income when you can scale back and make it on one?

[LivingAlmostLarge]

Depends. Sure the income is nice but it depends on whether you can stand to stay at home? I've friends who are dying to stay at home but have to work. And others who stay at home but WANT to work.

The lady who sits next to my DH is 27 with a 14 month old son. She loves working and hated staying at home. In fact they just went to pick up their son after 6 weeks at the grandparents in another state. She said it was awesome!

So um, I guess it depends on if you like parenting.

[Goldy1]

I am soon having my first and most likely last child soon at age 33. I have worked full or part time in my 20's. Most of the time I worked about 32 hours a week.
I waited this long to make the decision to have a child that it makes no sense to drop him off at daycare. Personally, I would not have much of a peeve leaving a toddler or older child in someone else's care, but I don't want to leave my infant with a non family member.
I actually think it is developmentally healthy for other people to at least on occasion take care of the child so it can be with others and adjust to that. I have read studies to support that.

Some familie must have the wife also work even if both make a moderately low wage b/c one income won't cut it. It is easier to decide to stay hom eif your husband makes a lot or if you do and have husband stay home.

I also think some familes set themselves up to have to both work ie buying a bigger home with a bigger mortgage and now no one can stay home.

[Like2Plan]

Originally Posted by Goldy1

Ok so we have a thread going on childcare. I know childcare is a huge issue economically and the books I have read implicate it as a big hassle for working familes also.

I think it may be more of an emotional issue than an economical issue.

Ok so my question, how much money does a parent need to make in order fo childcare to be "worth it" in lieu of staying home? I guess it would depend on spouse's income, taxes, etc etc, but is there a rough figure? lol

The answer to this question would depend on
1. Where you live and
2. What your expenses are
3. What your income is and what are the indirect benefits
4. What your spouses income is and what are the indirect benefits.

Folks have mentioned health care. There could be other things such as a pension, flexible spending account. long term health ins and 401K match, etc. to be considered in the overall analysis of the economics.
There are mom's who have walked away from 6 figure incomes (and a pension) to stay at home. Clearly, the decision was not strictly economic. (Or, like that Mastercard commercial...staying at home with your kid: priceless. )