45k salary entirely eaten by childcare

[Sofiewoo]

Granted salaries aren’t what they were only a handful of years ago but aibu to be shocked that my 45k salary is now entirely eaten by childcare and getting to work??
I figured if you are earning in the 20s you would assume that but not mid 40s!

I’m trying to weigh up whether to just take the next year and a half off instead of working for nothing. I know, pension, career blah blah but it’s mentally very difficult to juggle drop offs, work schedules and sickness but be no better off financially at the end of the month.

Did anyone else not realise it was a bad as this?

The job market is so tough right now. Purely for that reason I’d try to stay in the job you’re in. Would dropping your days help at all? Ideally 3 days a week vs 4 as otherwise you’ll just be doing a full weeks of work in less time. Or a 9 day fortnight.

Assuming you are with the father of your baby half of your salary is more likely.

What does your partner earn?

How many children do you have? Although prices are going up, there are also more funded hours if you have a household income below 100k which is presumably the case as surely if you had a partner in the home his wage would contribute and he'd also help juggling everything?

Except for the fact that if I stop working we aren’t half my salary down, or half the childcare bill down. When you have the same money whether you work or not it’s hard to view it as anything other than that!

Yes it's shit. Unfortunately 'career, pension blah blah' still matter.

Retrain in childcare - win win.

How does childcare cost 45k, unless you have two kids in full time and you don’t use tax free childcare or get any funded hours?

You could have 12 kids 4 and under and commute by helicopter for all we know. What are the figures? It seems excessive but impossible to know without the detail.

I was talking to DH about our choice for me to not work for 3 years (though did a part time training xourse and changed career) and then P/t for 8 years. We are now nearing retirement and obviously skinter than some friends but nothing would make me miss out on all that time with my kids when they were little. It was so magical.
We also aren't massive spenders on things like cats/houses etc instead spent all spare cash on cheap but fun holidays abroad or camping. We will do the same in retirement.
Could DH drop a day and you a day? That's how we managed me working p/t and going to uni. Didn't affect his or my career. Obviously affected our pensions but worth it for time you never get back.

2 children. 3.5 and 1. Tried for 5 years for baby one and got pregnant naturally quite quick with baby 2.
The problem is we’re paying more now with the funded hours than before they came in as nurseries have just upped the hourly fee so much to cover the loss.
Our bill was around £900 a month when I had by first in after mat leave, but her bill alone is almost £1000 3 years later with the 30 hours applied!

How easy is your industry to get back into, at a similar level, after a few years off? If easy enough, then there is no point working just to shell out on childcare when you could be with your children. Unfortunately for many people, taking a few years off could mean a pay/role cut when they return to work, still not uneccesarily a terrible idea but worth weighing up.

That sounds very expensive, are you paying a nanny? Could you switch to a childminder or something.

How many children do you have in childcare?

Should add we don't spend anything on cats (dogs here). Or on cars 😂

My DC went to nursery full time when there was no such thing as free hours at any age. It was equivalent to most of my net salary. We sucked it up and it was worth it as I maintained a great career.

Are you not claiming child free tax allowance, this will help and it is only for a few years. You'll be much better off when your children are at school even paying for wrap around care and holidays.

Easily, for example in Northern Ireland there are zero funded hours, no help at all until school.

in london full time nursery for two ten years ago was £3750 where I was so can’t imagine it’s any cheaper now!

It’s not excessive at all

we have a 2 year old in zone 4 London - costing £2200 pcm for a bog standard nursery - nationwide chain but bumped up for London presumably. £26,400 of my net salary after tax. Unfunded because of my husbands salary

so for me it would not make sense to do a full time job getting £45k pre-tax to spend £26.4K net on childcare…..

but for op - career and pension do matter because this time will pass

How many kids have you got??

I had twins. I went back 2 days a week as that was mostly tax free and just about covered my petrol and childcare plus kept my job. If I worked a 3rd day I would have lost money as the 20% tax on the 3rd days earnings would have meant my take home pay was less than childcare!

When they got the 30 hours funding I want back 4 days a week.

It's just something you need to factor in when having kids.

Plus it's not just your salary. There are two of you, you can use childcare voucher schemes to cut the cost etc...

Is that really true? I can't see how nurseries are getting enough parental if it costs so.much. I'd like the breakdown.

This makes no sense!
Im assuming here that your DP earns similar to you. So you have a combined net income of £90k. Childcare costs = £45k so you claim (although you must have several preschool children for that!). Remaining income = £45k/2 = £22.5K each.

Pension and career matter more than ready money in the present
This is part of the drudgery that is the early years. Like the rest of it, it gets better.

Yes it’s depressing the cost of childcare and travel- on the latter I do not know why people don’t kick up a fuss. My travel is only £12 a day but I have colleagues where they pay £30-£45 a day, factor in a day of childcare and you may as well not work.

Can you go part time? I know you’ll earn less so still won’t help financially but at least you’ll have more time with your DC.
I had a colleague who worked 3 days a week for next to nothing for 2 years when she had 2 DC in nursery. But what it did give her was to maintain a good job and professional registration, pension etc and a few years later she was able to increase her hours.

It’s always been that way. It was in the 90s, 00s, over the last decade and now.
What you mean is it’s never affected YOU before.

Getting through it keeps your career on track.

I took a few years out when mine were young for this reason (about 10 years ago). I earned 30k and it was about the same, no money leftover.

Personally as long as your partner helps pay into your pension I would consider a few years off til childcare is cheaper.

For us, life was chill, kids were happy, lots of home cooked meals, no rushed drop offs and my husband had the flexibility to do extra hours in his job which led to him jumping up a few pay grades in that time.

My only concerns would be your ability to get a decent job again (depends on location snd industry)? And whether the dad is a decent sort who will treat you fairly for the short period you're not earning?

And it is a very short period in the big scheme of your working life.