Childcare costs- are you affected?
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GoogleMP Dunleavy on MSN writes about women and money. I was toodling around that website and found this short article on childcare costs and how to offset them.
But what started this whole soul search on childcare costs was this article from MSN all about "the childcare crisis." Take a look- what do you think?
Are you feeling this? They're saying that the cost of childcare is now outpacing the cost of food. The cost of FOOD! This is a choice I don't want to be facing. And I'm not just yet, but it's on the horizon.
Paloma isn't in childcare right now-- we decided that we would live with my parents and sock away every penny that would have been spent on childcare and rent. And that I would earn what I could working from home.
Believe me when I say this arrangement has its ups and downs. Living with your parents is not an easy proposition. But the cost savings is significant. And my work-at-home career has taken some surprisingly interesting and positive turns.
But I can see there will be a time in the near future when we may enroll Paloma in childcare. There's a center at D's workplace that's excellent. It's also around $1000/month for her to be full-time, and there's really no part-time option there. The big plus is, of course, that she's near him. The minus is obvious-- $1000 a month is a lot for us. It'd be a huge dent in our savings toward a house (housing crisis aside). I respect that quality childcare is going to cost me, and I recognize that others pay a lot more, but I'm feeling the pinch at $1000.
Would I be earning enough for it to be "worth it"? Well, right now I don't feel like I am. But I'm looking ahead about two years down the line, when we want to have another kid. Childcare costs are only going up. Maybe I should set up a separate savings account just for that.
Has anyone done this, or tackled the cost of childcare somehow? I'd love to hear how others make this work, or work around the need for childcare.
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Child care costs don't stop when kids enter Kindergarten
I found the article on the rising cost of child care very compelling. I'd like to add that child care costs don't stop when children enter school. I have three children inlcuding a set of twins. As a parent of twins I was prepared for the double cost of infant care but I had expected that due to the low teacher to baby ratios I would be paying the highest amount of childcare fees when my twins were in infants. Not so. Their preschool rates increased annually matching infant care prices. I looked forward to this year when they started Kindergarten. I expected that since they would be in public (free) school for three hours and in after school care the remainder of the day, child care fees would decrease.
Not in our city. Our on-site, after school program is owned by the local school district - an execllent district that has experienced significant state funding cuts and skyrocketing special education costs. Because the afterschool program is a fee for service and the district has working parents over a barrell, district staff has raised after school fees 25% over the last four years thus passing on financial stress to middle class parents. Parents love the program and want to keep their kids at the school they attend. Furthermore with no other professional after school care available, only nannies remain as an option. Many of those nannies are undocumented and/or have very little child development education. Thus those parents seeking qualified child care professionals tighten their belts and pay the rising tuition.
Families under financial or medial strain have suffered even more; Off the top of my head I can list a dozen parents at my kids' school who have experienced job layoffs, undergone cancer treatment or have been rendered unemployed due to writers' strike (as "below the line" entertainment professionals). Still, because these professionals hope to return to work as soon as possible, they are paying full after school tuition as not to lose their child's spot in the program. Parents are spending well over $1000 per month with no income to pay for it. The school district is unsympathetic becuase they need the cash and would replace that kid without hesitation due to demand for quality child care.
Politicians are oblivious to the plight of working parents. Even our local school board, made up largely of either retirees or parents who can afford to have a stay at home parent, have no interest in this segment of their consistuancy. We're either invisible in their eyes or expendible due the district's need for money.
So, who will advocate for working parents?
Day Care Expenses
That was a very informative article, but what about the single moms who don't have the option to become an entreprenuer, stay at home, etc due to time constraints? Also, the dependent care flex spending doesn't work well for me because I need all the money I can get in a timely manner.
Any advice?
Respectfully,
Single Mom Status
Calling all single moms!
Thank you so much for your comment. I am hoping that more single moms will come out of the woodwork and share their strategies. Single mom strategies would be so helpful for all of us.
When I left my husband, I
When I left my husband, I knew my stay at home momma status was no longer feasible. But my earning power would never have covered living expenses and child care, even with child support from my ex. So I moved my daughter and I into my parents home. She loves it, my folks love it, and on most days I like it. lol. I also entered a grad program. Once I graduate my earning potential should provide a more independent living arrangement. At that time my child will be starting school. Right now her father or my folks watch her while I am in class, and studying is done in the early morning or late at night. In this way, I hope to avoid child care costs all together.
Flexible Spending Accounts
One way to save money is to use a flexible spending account for dependent care, if your husband's place of work offers them. I am assuming that his work is the source of your insurance, etc. The idea is that you can set aside the money that you use for dependent care and not be taxed on it. Most accounts have a maximum that are well below the total that you will be paying for childcare per year , but some savings is better than none.
I feel your pain. I am pregnant with my second child and the cost of both of them in childcare will be brutal.
helpful!
That's a helpful reminder. I hadn't thought to ask him about that. He works for a big state university, so we are fortunate to get things like insurance mostly covered. They may have just this type of program, as well. I'm going to check into that.
Congratulations on your 2nd pregnancy!
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