Childcare shock

[LittleFonzy]

Hi. Totally brand new to the forum. Please bear with me, as I can be a little slow on the uptake sometimes.

My partner and I are expecting a baby this December and like to be as organised as we can.

We both have very average salaries and have just been researching the cost of childcare and frightened ourselves to death.

By the looks of things, the childcare would take about 70% plus of my partners salary if she goes back to work. This is for a registered nursery.

Looking at our finances we have always run a relatively tight ship, and aren't extravagant with clothes, holdiays or monthly entertainment, but we would be certainly losing money each month with these figures.

So, I guess the question is, what are we missing or what should we be thinking about? Do any members have any words of wisdom? Things to think about? Articles/books we should read?

Thank you for any help.

Does your partner want to go back to work?

But why is she or the previous poster the one who has to consider going back to work if both partners earn the same?!

And if they earn the same and she goes back to work, then they both need access to the same disposable income which would not happen if 70% of the income came out of her salary (based on the assumption that it is her ‘choice’ to go back to work...which is incorrect. If both roughly earn the same it is also HIS choice not to become a SAHD).

Can either of you start early/late to reduce the hours needed. Could either of you get childcare vouchers through your employer? Check if you are entitled to any benefits

Childcare vouchers and tax credits are both irrelevant now. People already getting them can continue. But you can't sign up for either any more - new parents will get tax free childcare or universal credit.

I hate the thinking that childcare comes from the mother's wages. You are both parents and you both pay for childcare. I hope this way of thinking isn't going to spill over into the rest of being a parent, one parent making sacrifices isn't fair.

Childcare is really expensive, it always has been. Private nursery near me is £50 per day, commute £15, after school club £15. That's pretty much my day's earnings.

There are a few ways to.minimise costs though.

1. Look into how much tax free childcare would save you.
2. Are you entitled to any universal credit / tax credits to help? Threshold is usually around £28k household income for first child (circumstances depending).
3. Look at different working patterns to minimise the amount of paid childcare you need. (my dp and I both have a weekday off each for that means we only need 3 days childcare).
4. Can grandparents help out at all?
5. Start saving now!

I think this is something you should have researched before you decided to have children. The majority of nursery workers only get paid the minimum wage so, in my opinion, childcare costs are too low- around the £5 an hour mark, compared with £40+ which some may spend at the hairdressers/nail bar or on fags, without question. Your children are worth more than hair and nails or fags. This is just for example.

what are we missing?

Same as me and my DH - family who can look after DC. I’m very jealous of people who can just leave their DC with Grandma (quite a few people I know) - it’s quite upsetting sometimes to think about how much money they’re saving in comparison to us.

Exactly. So why was he deducting the cost solely from his partner’s salary?
Because if his partner does not work there would be no childcare costs.

Both of you drop to 4 days a week, possibly compressed hours. Then you only have three days of childcare to pay for and you both get a one on one day with your dc.

You say it’s 70% for a nursery but have you looked into a childminder? They are often cheaper.

It's no big secret that childcare is expensive . Our nursery fees are more than our mortgage and council tax combined.

You need to work out what the percentage cost is of BOTH your wages. Also that you will lose out on much more if your wife doesn't go back to work - as well as her limiting her future career profession, pension contributions etc.

Most people are entitled to tax free childcare - basically for every £8 you pay, the government top it up to £10 so it's a good contribution. Again, depending on your income you will also get child benefit of £82 a month.

My friend has 2 kids under 4 and both in a creche. This costs almost all of her salary but they are doing it because she has a good job with good benefits etc so it is in their interest to suffer for the first few years. This will payoff in the long run rather than her starting from scratch again in a few years time with a low paid junior roll. Depends on what you want.

@quizqueen what a ridiculous comparison.

Yes I pay £40 for my hair to be cut - once every 3 months. That hair dresser spends 2 hours on my hair and can only do mine, so is charging £20 an hour out of which she needs to pay all her overheads.

Nursery charge £5 per hour per child, for 10 hours a day. Each member of staff can look after up to 8 children (less in baby rooms obviously).

The two are completely incomparable, they’re so miles away from each other you just can’t level them out enough to draw a meaningful comparison.

You only pay £5 an hour for childcare but paid £15k for your car, does that mean your car is more important than your kid? Makes no sense, does it?

I'm always mystified by this 'drop to 4 days a week each' solution. This is what DH and I do but surely if your salary outstrips the cost of childcare (as seems to be the case here), you are better off the more days you work? For DH and I it is a financial sacrifice to work 4 days each, relative to full time. We think it's worth it for the balance between spending time at home with the DC and reasonable maintenance of our careers. I appreciate depending on where you earnings are relative to tax thresholds it could be different though.

You may be entitled to UC. And child benefit.
Costs should come from combined HOUSEHOLD income.
Not yours and hers.
Sorry honey.. Not sorry.

Because if his partner does not work there would be no childcare costs.

Or if he doesn’t work. But if they both do. It isn’t solely out of either of their salary. So why phrase it that way?

It is shocking!congratulations btw! Have you looked into alternative childcare? My 1 year old DS goes to a childminder 4 days a week including every other Saturday, roughly £460 a month, partner and I split it between the both of us. I find my childminder has more time for my DS and knows him better as she looks after 3 others including DS, it's more personal if that makes sense ? Definitely look into child minding. Instead of 70% of our salaries going into childcare only 40% which saves us a lot of money

Off topic - but what - 2 hours for a haircut? Yes I pay £40 for my hair to be cut - once every 3 months. That hair dresser spends 2 hours on my hair What the fuck? Are you a prized poodle?

I just assumed they were a lesbian couple Tbh

OP add in the benefit of tax free childcare or childcare vouchers (plenty of calculators online) and see where you are then

But yes, the truth is you need to earn a fair amount to pay for childcare. Many parents can’t afford to work

Using registered childminder, or shared nanny can often be cheaper if you have any recommendations.

This is the exact reason we chose to send DC 2 and 3 to a childminder. They are significantly cheaper, making a return to work actually financially worthwhile. Ask around and go on recommendations.

Childminders are generally only cheaper if you need fewer hours. If you need say, 10 hours a day you’ll probably find them similar to nursery as they charge by the hour and nursery charge by the day/ half day

To those of us criticising this new poster referring to childcare coming from the partners salary;
There's no indication of the OP's gender in the post, we could be discussing two women expecting a child.
Does that make a difference to the way we are thinking?

I aaumed that the OP meant that the cost of childcare would be equivalent of 70% of partner's salary.