Saving for childcare costs

hyposmurf

Strange question this but I know in the future my partner and I would like a child.Im just over the median wage,partner is under, so I'd like to prepare financially,rather than struggling to get by each month like many parents.
What costs would I be looking at fo a child age 1,2,3 etc.Its hard to gauge as it depends on your tastes and the child etc.But as a rough ball park figure.What are childcare costs for child minders,day care,food and baby accessories etc.
I realise there are childcare vouchers that can be claimed via employers etc but I'm little lost to outgoings for chidren,find it all a little daunting,not like you bring back a child if you run into financial problems.

mdsremos

Our little one is 22 months old and I returned to full-time work when he was 6 months old and chose to suitable childminder local to me in Cheshire. It costs £125.00 per week, we drop him off at 7.45am and collect him at 5.30pm and she includes his meals and outings costs etc. We provide Nappies, wipes and I send him with a snack pack so I know exactly what he is eating in between his meals.
We receive approximately £400 per month from Tax Credits, Childcare Element and we both work full-time with an average household wage of £30k per annum plus we get the usual child benefit of £72.00 per month as well.
We buy nappies, wipes and clothes etc when their on offer and joined every parenting club possible so we receive money offer coupons which reduces the cost quite abit. Average weekly cost for nappies/wipes is about £8.00.
The biggest hit for us was when I started maternity leave and had to drop from an average take home pay of over £1k per month to just £108 per week!!!!! It was a real SHOCK and we cant afford to have another baby until little one is at least in preschool/nursery and we have some money behind us!

vinegardisaster

Hi,

I strongly recommend you start saving now because childcare costs a fortune. I pay £4,800 per year :eek:on Nursery fees for my little one (3 days a week only) that around £400 per month. When they reach the age of 3 you can receive 2.5hrs/day of free childcare in the form of a nursery place or a financial grant (roughly £1300 per year I think).
Good luck

hyposmurf

mdsremos wrote: »

It costs £125.00 per week, we drop him off at 7.45am and collect him at 5.30pm and she includes his meals and outings costs etc. We provide Nappies, wipes and I send him with a snack pack so I know exactly what he is eating in between his meals.
We receive approximately £400 per month from Tax Credits, Childcare Element and we both work full-time with an average household wage of £30k per annum plus we get the usual child benefit of £72.00 per month as well.

So what you get in credits/benefits almost covers the cost of the childcare?Thats not bad at all.I didnt realise you could get so much financial help.We've survive on just my wages for months when my partner ws looking for work(couldnt claim bnfits either).We got by but finances had to be carefully monitored and had to be quite modest with most things.Thinking of having a child in the future would be an addition to that previous financial situation, something that worried me,but now after realising thres other financial support, I'm starting to feel a little happier now thanks for your responses.

Murphy_The_Cat

hyposmurf wrote: »

So what you get in credits/benefits almost covers the cost of the childcare?Thats not bad at all.I didnt realise you could get so much financial help.We've survive on just my wages for months when my partner ws looking for work(couldnt claim bnfits either).We got by but finances had to be carefully monitored and had to be quite modest with most things.Thinking of having a child in the future would be an addition to that previous financial situation, something that worried me,but now after realising thres other financial support, I'm starting to feel a little happier now thanks for your responses.

if you fill in your details on here (obviously create them for minismurf), you'll get an idea of what is/isn't available.

hyposmurf

Thanks I was just finishing filling that out and it crashed for the third time, when I saw your link. :-) I'l try again another time.

hyposmurf

Also these childcare vouchers I guess are a way if gaurantee-ing they are likely used on tax paying childcare workers.If they arent used I'm sure many people use cheaper childcare workers escaping the tax burden.

curtlyb

If you are definitely going to have kids then i'd say that the immediate thing to do would be invest money in the childcare vouchers, currently you can put £243 a month max into these, they won't earn interest but the potential savings are substantial. My wifes company use Accor services, they send the money to them each month before being taxed & Ni'd so that will save you about 30% (50% if you're a higher tax payer) on your future childcare costs, we just log onto the Accor website and pay the childcare company the money, it's as easy as that.
We've found it's a massive saving as our childcare was £35/day x2 children, taking a third off that makes a massive difference !
With a combined income of about £43k we were paying over £960/month at one point for four days/week childcare, tax credits gave us about £400 back but that was a 'worst case scenario' six month period with both kids at full rate, once they are three you start to get free chiildcare hours via the government.
Having kids is not a cheap pastime :-)
We've struggled for four years but we're over the hill now and we've got two fab kids who get on really well with all kids and adults (due to childcare exposure) and the missus got a promotion as well.... good luck

polkadot

We receive approximately £400 per month from Tax Credits, Childcare Element and we both work full-time with an average household wage of £30k per annum plus we get the usual child benefit of £72.00 per month as well.

Do you mind if I ask you how you manage to get so much back? My OH is on about £26K a year, we currently only get back child tax credit of £10 a month as well as usual child benefit. I really want to go back to work and was offered a position paying £17k per annum. When I called up to ask about childcare component I was told that we dont qualify for anything as our income is too high already-without my prospective pay. I also have cerebral palsy but because I "appear" to be able bodied, and have inserted Orthotics rather than use a walking aid-our lovely government does not consider me disabled. Childcare is going to cost us nigh on £800 a month so I will only bring home close to £400 after this-yet still we are apparently too well off for childcare component or even just mobility on DLA (which would mean I could call a cab when my hip dislocates in the middle of victoria station rather than dialling 999)

Quietgirl

I work part-time but with the travel involved it is like working full time. I have a system were I have sat down with my child minder to work out the yearly cost. As with my daughter being full time at school she picks her up from school, I take her and she also has her all day on saturday. But all day during school holidays and teacher training days. So we worked out how much it would cost over 52 weeks. The amount I pay her is £90 per week, when she had my daughter full time it was £115. This includes outings and all meals. With being on a low income I have to find only 10% of the £90 per week, so really it only costs me £9 per week for my daughters childcare.

I did ask her about the childcare vouchers but I think she charges more on her hourly rate for them.

The best advice I could give is when you get tax credits to pay your childcare bill don't think of it as your money, mine goes in the bank of friday and I pay her friday. I have also found that my childminder and I work together, and it works well, I am flexible with her, often early to pick up my daughter, but I did allow for late running with in the hours I contracted her for (having to travel by train). She does things for me like pick my daughter up from dance classes, drop her off at my parents, sometimes she brings her home. My little girl is like an extended member of their family and I have had a good and happy experience with my childcare.

disneymum

The cost really does vary from place to place. Where we live nurseries (SW London) nurseries cost over £60 per day. Childcare vouchers are good as both you and your husband can use them towards paying the childcare fees (provided they are registered). After they turn 3 they also get a early years grant from the government which is approximately £100 per month.

This site helps you see whats on offer childcarewise in your area

www.childcarelink.gov.uk

Good Luck !!