There is so much thought and effort that goes into figuring out all the particulars of daycare that I think many parents skip right over the simplest question of all, “Is daycare right for our family?” Decide on Daycare will help you evaluate if daycare is right for you.
It might seem like a no-brainer but the fact of the matter is, with the cost of daycare, the decline in wages, and the expansion of urban sprawl it may very well be that you are only working to pay for daycare. Some new stay-at-home parents have found themselves looking at this option in a new light after finding themselves unexpectedly unemployed in a bad job market.
Perhaps it’s time to take a step back and examine the situation from a whole new perspective.
Financial Cost of Daycare
The Cost of Daycare Itself
You may be spending more on daycare than you think you are. If you’re spending $250 a week for an infant and $200 a week on a toddler, that’s 450 a week. If you calculate your monthly bill, that’s $1,800 a month, which means you’re paying $21,600 a year! So if you or your partner makes less than $22,000 a year, you are losing money by taking your child to daycare.
The Expense of Going to Work
Don’t overlook the cost of actually going to work and what it costs to have a career. You need to consider what it costs in gas and tolls, wear and tear on your car, clothes, shoes, salon costs, and other miscellaneous purchases. You need to also look at your food expenses. Do you buy coffee every morning? Do you go out to eat with co-workers? These can quickly add up to thousands of dollars more you spend a year just to have a job.
The Hidden or Secondary Expenses of Working
These can vary widely depending on your career. You may incur extra babysitting costs when you have to work late. You have limited time off from your job, so you may end up taking vacations during peak times where airfare, hotels and entertainment prices are at their highest. There can be many more examples of this type of secondary expense but it is important for you to consider these when thinking of the financial effect of daycare.
Take all of these into consideration and you can easily go through the equivalent of an annual salary of $30,000 to $40,000 a year. If you factor in long commutes, premiere preschool academies and a large amount of work expenses, and the cost can go to $50,000 a year or more. Take it all into consideration when calculating the total amount that working actually will cost you. It’s likely that you may be working just to pay for daycare.
This is just the financial aspect of looking at whether or not you should be a stay at home parent. In the next article Decide on Daycare will go into the social aspects and the more difficult questions to ask yourself.
In the meantime visit the Determining Your Needs for Daycare for a more in-depth look at the different daycare types and great parenting advice on what would be best for you.