Childcare Number crunching

ViolaLass

lulu_92 wrote: »

Depending on the financial situation it doesn't necessarily matter about wants.

Sure, but the OP had outlined their financial situation. It doesn't just have to be about the money for them.


Other posters, I think some of you are assuming that the OP thinks that whatever is leftover after childcare will be the wife's 'spending money'. We don't know that they won't share what is leftover - the OP has just been calculating how much it will be, not explaining where it will go.

e.g. if I have extra work, I know that that money will be split with my OH but we still work out whether it's worth it compared to any childcare costs that would be incurred as a result of the work.

shiny76

03022242 wrote: »

I may be able to work compressed hours, long 4 day week

If this is so that you only pay for 4 days childcare per week (as well as enjoying time with your child ) then check with the nursery about their fees for part-time hours. When we were looking at this it cost approx £50/month less for a 4 day week compared to full time.

Also, you mention vouchers and how much you are able to obtain in them. The scheme is supposedly changing in 2017:
http://www.moneysavingexpert.com/family/childcare-vouchers#changes

AndyBSG

I really have no idea where to start in advising the OP because, as many have said, there are so many factors to take into account.

My wife went back to work after our first child but, financially it really wasn't worth it.

By the time we paid child care costs(even with both of us using the child care voucher scheem to reduce the cost) and factored in the commuting costs we were barely £300 a month better off.

In exchange for that £300 a month our daughter was spending almost 50 hours a week in child care away from either parent and after both working full time hours we were then having to doall the usual houshold chores.

So we were seeing our daughter for an hour or so in the evening and spending a big chunk of the weekend catching up on chores.

However, we did it becuase we knew it was a short term thing. When she reached 2 years old the cost dropped as she was paying toddler rates and not baby rates then we qualified for our 15 hours free childcare and next year we'll get the extra 15 hours that's coming in.

So, my wife never had a career break and didn't miss out on promotions and pay rises and now we are much better off.

That year or so of pain and exhaustion was hard but if she had stopped work she'd now be trying to find a job and would be at the bottom of the pile for pay rises and promotions.

That said, when our second arrives in January it simply won't be worth her working as it will cost her more in child care than she earns so she's going to drop from 5 days a week to 3.

- Can you get by without your wifes wage?
- Once child care fees are taken out how much is going to be left?
- Is there a grandparent who can look after the kid one day a week(this makes a huge difference)?
- Both working full time and having a house to run how much time are you actually going to spend with your child?
- Even though your wife might not have much left after child care is it still worth staying at work just to keep the job open for when things like the 15 hours free childcare kick in making full time working more viable?
-Are condensed hours an option at her workplace(ie working longer hours Mon-Thurs to get Friday off and save a whole days day care costs)?

cyantist

Savvy_Sue wrote: »

Surely that's got less to do with the costs, and more to do with what your wife would like to do?

For me, it was a sanity preserving thing.

Why do the full costs of childcare come off your wife's salary? Why, oh why, do people persist in subtracting the childcare costs from ONE PERSON'S earnings (usually the woman's), rather than either from the higher paid earner, or from the household income?

People subtract the childcare costs off the wage of the person who is considering giving up work. Why would you do anything else? It's the easiest way to work out if the lower earner should go back to work or stay at home.

Kynthia

Depending on the difference between your salaries it might affect your take home pay the least if you both go part time instead of one of you going part time or giving up work. Use a take home pay calculator to work through the options after tax and other deductions. You'd be surprised the affect your tax free allowances and any higher rate tax you pay has on the first day you give up work compared to your second. Take home pay isn't necessarily split evenly across each day you work.

WantToBeSE

Would there be any chance of you both working from home 1 day a week?
That would mean you'd only have to pay for 3 days childcare (if you work mon-fri).

penguingirl

WantToBeSE wrote: »

Would there be any chance of you both working from home 1 day a week?
That would mean you'd only have to pay for 3 days childcare (if you work mon-fri).

I often see suggestions like this, but I don't know anyone who manages to actually do any work with a small child around if they are the sole carer for the day. Yes they might get a bit of time during a nap, but otherwise it is pretty hands on! I know people who say it's slightly earlier when the child is unwell and it's an emergency as they will often sleep more/have less energy/be more easily pacified with a snuggle/film day.

I plan to go back to work after I give birth/maternity, mainly for my own sanity, my career, to qualify for future maternity leave, to keep up my pension, and because although the extra money won't be much, it's still enough to make a considerable difference and pay for things like holidays. We're lucky though as I will probably have the option to go part time.

Kynthia

My employer doesn't allow you to regularly work from home if you will be caring for your child as then you can't be properly working. However I've heard of some being allowed to do it when their work can be done in the evening once their partner is home. So it's worth asking.