nanny threshold?? how much do you need to earn to make going back to work profitable?

[missytequila]

I am debating going back to work..however I am afraid that my salary would only cover nanny/CM/nursery and that I would not bring any money in... What do you all think is a salary for a London mom to make that would make working a profitable good solution? How much does good childcare really cost?

Our London nursery is I think c. £800 p.c.m. for a child under 2 so that is £9,600 p.a. so using thiscalculator I think you would need to earn £12,000 p.a. gross to cover it.

Now we have 2 children fulltime in nursery the cost will be £1800 p.c.m. so that means a salary of about £30,000 will pay for it.

A FT nanny is about £400 net p.w. in London and I haven't got all the sums to hand but it works out that you need a salary of about £55,000 to cover that including all the employer's NIC, food, nappies, insurance, days out kitty etc.

Are you in the UK at the moment missy or thinking of moving over? Just wondered as you wrote "mom" if you might over other side of the Atlantic now?

make that £400 to £500 net pw in London for a nanny actually

I am in the UK and have been for a while, but I grew up in NY, hence the 'mom'...that confirms what I thought..its bloody expensive and I am not sure I make enough. anyone else finding this an issue?

Fulltime childcare for my baby is going to cost me about £10k a year. When negotiating my new salary I reckoned on a minimum £40k. Anything less than that and I would be better off staying at home. No point working just to cover CC costs.

Do realise though that £40k is a decent salary and not within everyone's reach!

I reckoned you needed £55K to break even

I am currently on 30k per annum and paying £820/month for one child. Expecting a 2nd child though and dreading how will we cope when we will have two in childcare. The way has to be find though as they both will be in childcare only for one year and I don?t want to quit my job only because of the year!

It's worth remembering that the high cost is for a short time only and reduces when your children go into free childcare places / school and the pain now, should be considered in the context of your long term earning / pensions etc and also think about the affordability in terms of your household income (this comment usually generates debate but your don't assume your salary will cover all child related costs, so why should it have to cover all childcare costs - look at the total household costs and income before you make your decision). You could also consider changing your mortgage (if you have a mortgage) by changing the term or switching to interest only for a few years.

EldonAve my initial thought was £55k, but they offered me £45K so thought it churlish to refuse!

CM is least expensive, followed by nursery, then nanny. For nanny, you can lower the costs by having a live-in nanny or nanny share or nanny with child.

Once you have 2-3 children in ft nursery, you might find it less expensive (and more convenient) to hire a nanny instead.

Once children are in school, you can use wrap around care like breakfast/afterschool club or au pair.

Don't be put off by childcare costs. As others say, it is temporary. Much better to stay in in a decent job, even if at a loss, as that means you will come out of the childcare years with seniority and experience to negotiate better terms for the rest of the 2-3 decades you will be working.

Much better than to become de-skilled and scratching around for minimum wage jobs once dcs are in school.

We've found that the average wage for a full time nanny in London is £500 per week net which equates to £2,800 per month, or £1,400 if in a nanny share like we are. Now we have a second child, we expect to be spending a bit less than double that, £2,500 per month, on childcare. DH and I are both on good salaries (I earn around £115k, DH 70k) but after childcare, mortgage and other costs, are not left with much.