Post # 1
My DH and I have been tossing around the idea of when/if we want to have a baby. We make good salaries, fully fund our retirement, have a 12 month emergency fund, and usually have around $1000 left over each month that we invest. Basically, we are in a great place with some extra money left over.
Then I decided to look some things up, and found out that daycare in my area costs avg $2k per month! Nannies are even more expensive. I know you can get a tax credit, but that doesn’t even make a dent in the 24k we would pay out every year for childcare.
It really makes me sad, and I seriously wonder how people in my area afford children.
Post # 2
You just do it. You sacrifice in some areas to splurge in others. Daycare is temporary, maybe you could put less in savings for a bit. Cut yourself to part time to use daycare less. Look into home daycares. I use one from 7am-noon. She provides all meals and charges me $125 per week. I know you have a year of savings, which is great, but I think if you want a child, maybe use some of it toward baby expenses. Not many people have that kind of savings and they make it work.
Post # 3
I don’t know either. If my mom wasn’t providing childcare every day it would be a longg time before we had kids, even with daycare being $1,200ish a month. That’s double our mortgage right now!
Post # 4
It’s crazy expensive. Daycare, in particular is out if this world.
I’m only about four weeks, but when we were planning on ttic, I made sure that we could live and save on DH salary alone. Granted, I plan on keeping my p/t job (work from home) as long as possible but if push came to shove, we could get by without it. Also, we budget well and save as much as we can.
We’re going to avoid daycare costs by me staying home; move to a cheaper place when the lease is up; buy used baby things and only the minimum. Babies dont care if they have fancy accessories after all. There are some very excited aunts and grandparents that will happily fill in the toy gap haha! I’m also going to stock up on diapers and wipes beginning now (diapers.com has a great return policy if it turns out I get the wrong brand or whatever). Breastfeeding is the plan too, again because formula is really pricey and partly because the smell makes me gag lol. We also don’t have cable, I cook most nights. For me, it’s not odd because I grew up around big families who all did this but to some those would be big changes. I have no idea how households that aren’t making gobs but have both parents working do it. daycare alone would knock us out of the running.
Right now, that’s the plan. It is kind of scary though! Big changes!
Post # 5
You guys are in a much better financial place than my DH and I, but we are TTC. We figure if we wait for the perfect time we will be waiting for years and years. We both have stable good paying jobs, own a house, and are comfortable paying our bills each month. Childcare is definitely expensive, but things have a way of working themselves out. I think when we have children and make sacrifices in our lifestyle (not going to all the concerts/festivals/restaurants) we will be able to make it work.
Post # 6
CoffeeBeanKate: MrsBagel: For us, it doesn’t make sense for me to quit my job, since I make significantly more than what daycare costs. And unfortunately my job/field doesn’t allow me to go part-time either.
We live in a big city (in 1 bedroom, no room for downsizing!) – I don’t think there are many home centers, since barely anyone has a house. Almost everyone lives in condos or apartments.
I think we would really have to move somewhere where the cost of living is less expensive. Unfortunately my DH works in a field where proximity to a major city is essential to his job function.
We are generally minimalists already and spend most of our money on travel, which we could clearly cut down on. Definitely not 24k worth though! Plus not to mention the day-to-day costs of having a child, plus saving for their college. Sigh.
Post # 7
Sigh, daycare really is expensive. I am also a working professional and dreading when I have to enroll my baby in daycare. you seem to be in great financial standing, I’ve seen people have multiple kids on alot less, so it must be doeable. I also don’t have the option of cutting my hours to part time, though it would be lovely.
I think we will likely lower our investments for the first few years since our daycare is maybe $1900 a month for newborns but drops to $1200 or so once they hit pre-k age. Daycare in my zipcode is $2500 but I went slightly outside on the outskirts of my zip and found one less expensive. Newborns don’t seem to be that expensive (aside from the daycare cost), you will likely get what you need from your baby shower. Also, people gave us a bunch of baby clothes and toys so we didnt have to buy much.
As far as the college fund goes, my husband and i paid our way through college without any financial assistance from our parents and it taught us a great life lesson to be responsible and take our education seriously. We will likely go that route for our kids too, so we arent worry about a college fund right now. I am due to give birth in under 3 wks, btw.
Post # 8
Diamondgurl: Thats a good idea to look outside of our ZIP code. We live in a pricey area, so chances are there might be something I drive by on my way to work, etc.
I paid for 3/4 of my college education, but I now have a ton of student loans, which really sucks. But we could always wait until daycare gets cheaper as the baby gets older, then put the excess in a college savings fund!
Congrats on the upcoming arrival of your LO! How exciting and what a wonderful new season of life for you and your husband 🙂
Post # 9
- Wedding: October 2011 - Bed & Breakfast
You make decisions, re prioritize things, and make it work. We ran the numbers, and a LOT will cost about $2500/month. We will scale back our retirement contributions, cut out discretionary purchases, and reduce our monthly savings rate to make it work. Will it sick a bit to save less and spend more? Yes, but the $25 a year childcare bill is only for a few years. Then we can ramp up our savings and fun money spending again. It’s worth the few years of pinching a few pennies for us to have a LO.
Post # 10
LindyLu: Maybe this isn’t an option, but we are no where near where you are, but we are finding ways to make it work. I am finishing up my last semester of school and am actually getting a large refund back, we are saving that while I am on leave so we can use it as an “income”. We also just found out the hubby is getting switched to 2nd shift. While many people would hate this, he works 4 days on, 4 days off (10 hour shifts). So actually it is going to work out perfect for us as I am getting ready for work, he will be able to stay with the baby. We will only need childcare for 20 hours or less a week! Like others have said, you sacrifice things that you may want in order to give your child what they need.
Post # 11
i feel you. i think we just bought a house and we’re still getting used to our new monthly budget. however, we definitely live within our means currently. that being said, i don’t have the extra $ to throw into daycare (should be about $1200 in our area), and secondly, i don’t want to work full time while i have a small child. i would, however, NEED a part time job to make this work. unfortunately in my current position i couldn’t make it work.
everyone says “make it work, it will work out”, but it WONT. there just isn’t enough money.
we’re going to pretty much try as hard as we can to pay down my student loan and car loan and roll in any extra into our mortgage. that will give us an extra $500/ month.
however, my job right now has excellent healthcare and my husband’s is more expensive and for less coverage. if i stop working we’d have to switch to his and lose even more money.
long story short, i don’t know. but you’re not the only one worried about it. good luck.
Post # 12
We are waiting to TTC until after we have paid off both of our car loans (one down, one to go!) – that will free up $1,800 per month in income for us ($400 per month for each car loan, plus an additional $1,000 per month to pay down faster). With mat leave pay, the difference saved there will carry us through a maternity leave without having to make any major adjustments to our lifestyle.
Fortunately for us, childcare is only about $600/month here, so we will be able to afford that comfortably once I’ve returned to work.
You mention student loans – is there any way to pay down extra on them right now using your discretionary income to eliminate that from your budget sooner?
Post # 13
LindyLu: You don’t have a baby, have a ton of disposable income to do whatever you want and to go whenever you want and you live your life happily. 😉
Okay, maybe not the answer you wanted, but it something to think about.
Post # 14
LindyLu: i am like you. DH and I have decent salaries. But the area we live in is very expensive so we save as much as we can.
i myself am always wondering how to afford baby costs, daycare is the biggest cost. we both work fulltime, so we wouldn’t be able to do part time care bc it only goes til 1pm!
then i look around and i know families that are worse off than us, living off of one salary, and don’t make nearly as much as we do and they are making it.
DH thinks I am paranoid, but i can’t help but think about it.
The only good thing is that as as the baby gets older, the daycare gets cheaper
Post # 15
My husband and I have discussed this as we are TTC, the plan is to keep the job I have (which is only about 4 hours a day, 4-5 days a week) stop when I have the baby for a while then my husband will get the baby when he gets home from work and I will go to my job for a couple hours in the evening so I can still have the extra cash coming in to help pay for things (mostly my income goes to groceries and such for the house since it’s smaller, and his better paying job pays the bills). Also both of our moms are stay at home/only work a little so would be available to help out if needed.