SAHP vs Childcare vs Income

[loonymoony]

I'm reviewing our childcare situation and doing some sums to look at how various options will affect us.

One option is to use a combination of nursery (for our youngest), before/after school clubs (for our eldest) and grandparents 1 day a week. This should allow, due to the fact that it means DH and I can work and therefore earn more, us to save in the region of £2k per month. I am waiting to hear if the nursery would consider term time only and we'll wing it for school holidays using annual leave, grandparents etc.

The other option is to have a SAHP. This would allow savings of approx. £300 per month. DC2 will be able to attend the local preschool (which we love) rather than nursery and school holidays/illness etc won't be a problem. As DC2 won't qualify for funding until Sept 2017, we'll be paying preschool fees until then.

I know no one can tell me what to do, but I'm interested in your thoughts.

I should add that we aren't frivolous but don't like to be skint. We've always budgeted carefully and earned relatively well so I'd say we are used to being sensible but not used to watching EVERY penny, but are savers rather than spenders. We will soon be embarking on a fairly big renovation project on our house which we have money put aside for. Holidays will come out of any savings (and we like a holiday). We had hoped to start overpaying on our massive mortgage soon (which clearly won't happen if we go down the SAHP route).

WWYD?

PS. I really hope this doesn't come across as a stealth boast and nor do I want it to turn into a SAH vs WOH debate...........

I would (and do) stay at home. Plenty of time to be saving later (mid 30s) and love having stress free life of being at home with the children and not juggling childcare / household stuff.

Nursery, unless linked to a school, unlikely to do term time only. Childminders may be more flexible in this, as they can have their own or other kids in the school holidays.

Don't forget your exit strategy from SAH - how will you get back into the workforce? It's not just the salary now, it's the knock-on effect on earnings during your entire career that would concern me.

My job has more than a financial value - it is a career and gives me a sense of purpose and achievement away from home. I could never be a sahp. Is this the same for you or would 1 parent be happy to stay home. That's a bigger consideration for me than money.

You haven't said whether you both have careers that you're passionate about, jobs that are dull but that pay the bills or something in between.

Neither have you said how you both feel about potentially SAHPing. Nor whether two overlapping condensed or 30 he weeks would be an option.

I couldn't make the decision on finances and childcare logistics alone.

Thanks word. Though we might need to get rid of the cleaner and the SAHP isn't keen on that aspect of SAH ;) I like the idea of the kids being able to have playdates and go to clubs/activities (though funds would be limited obviously!)

detestable We're not interested in childminders, for various reasons really. Waiting to hear from the nursery, lots round here do offer term time. Even if they don't, it's no biggie, just means that we may lose a bit of money during the school hols as would like the DC to spend at least some time together then and if we've got to take time off for DC1 then we may well spend time with DC2 as well!

SAHP can pick up career again at any time (self-employed) so that's not an issue. Absence of work-related stress would be a benefit to becoming a SAHP. Other parent doesn't have the option to SAH, but has done in the past and is happy to be the one with the career and overall as a couple we agree it makes sense this way due to more guaranteed earnings, relative job security, future earnings potential, pension, benefits etc etc.

The one who would stay home currently works PT so has a bit of a view of what being home with the children would be like and has found it fun/frustrating in equal measure....

Could you both do part time instead of stopping work?

Not really spoon as I don't think we could manage it so that we had zero child care needs, so we'd still be paying out for it with even less income (and with a heavy detriment to the additional employment perks).