More income = Higher childcare

yolie1220

I am currently trying to pay off my debt, but I have a serious issue. My bills are $500 more per month than my income. I live in America and get help from my state to pay for childcare since I am a single mother. If I work more hours or get a second job, the increased income will make my daycare cost go up since it is based off my income. I am at a loss as to how to decrease my monthly deficit when I am basically "punished" for trying to make more money

[Deleted User]

You simply need to find the best balance of income versus childcare costs. If the added childcare leave you worse off, then you don't do the extra hours. If it leaves you better off, then you do.

It's not a punishment - it's a cost you need to pay for using a service.

andyfromotley

Hi Yolie,

have you crunched the numbers, if you increased your hours by 20 pw how much extra would you earn (after taxes etc) then deduct your increased childcare costs from this. What is the net result? Thats what you base your decision on. the net effect on your income.

If you do that and you are only $30 per week better off then you may choose not to work the longer hours. If you are $250 better off then you probably will want to work them.