Daycare Costs or I think I've made a big mistake.

[swank]

So for some reason I am just now getting around to running the numbers on daycare costs for two kids.  We chose the one we liked the best but it was also the most expensive.  I guess with all the stressors of this past year and now the readjustment to two kids in full-time care (we've had a nanny since DD was 6 months old) I didn't pay much (or any) attention to costs.

So it looks like 30% of our net monthly income is going to daycare. This is insane right?   We pay 20% just for PITI for our house. 

Granted, we live in HCOL and this daycare is not exponentially more expensive than others it's just a little more expensive. It is only for one year since DD is 4 and will be in K next year.  But, wholly jeebus that's a lot of money.  

Anyone want to commiserate or am I sitting alone here in the corner?  

[Deleted]

We could bankroll university tuition, easily, for both kids, for what we pay in daycare.

Daycare bills are insane.

[huskymom]

Daycare is about 28% and mortgage is 26% for us. I feel you!

[VillainV]

If we had two in our current daycare, we'd be in a similar situation.

[LoveTrains]

Sounds about right for HCOL. If I had two in daycare it would absolutely be more than my mortgage, and probably more like 35% of take home. 

[dcrunnergirl52]

I can't wait for DD and DS1 to start kinder a in few weeks. Having 3 kids in full-time daycare has meant that we're saving just a few hundred dollars each month, if that. Yes, I can definitely commiserate.

[pamela]

That is insane. If we had 2 in daycare it wouldn't even be half what our mortgage is. Granted it's not a great daycare, but we have no options around here

[suzubell]

Our daycare is significantly higher than our mortgage too, like 30% higher. It sucks.

[curbsideprophet]

We were paying more for daycare than our mortgage. DS just moved to the toddler room so it may be about even now.

[tcu2003]

We pay more for our 3-year old in daycare than our mortgage. Granted, not significantly more and we also had a pretty big down payment on our house, but still. And if we ever have a second, it'll probably mean daycare will be more than double our mortgage payment.

[electricmayhem]

We moved our older two to a center last summer and it's almost double our mortgage payment. This isn't even the most expensive option in our area and we live in a fairly LCOL town.  I'm not even going to calculate the % of our net pay it will run when DD2 starts in October.  Kindergarten can't come fast enough!

[Deleted]

In my area, most options for a newborn and toddler would be the same as my mortgage/tax

[starburst604]

It's insane. I don't know how we will ever afford a second child.

[loskadoodle]

Our childcare is like 1200 a month more than our mortgage.... And we pay an extra $400 a month on our mortgage. It's insane. I can't wait to be done (in 4 more years)

[honeybadger]

Daycare is ~29% of our monthly take home. PITI + HOA = 30% of monthly take home.

HCOL area.

[oswin]

In MCOL, daycare for two is about 2/3 of our mortgage payment, but we have one of the more expensive houses in our immediate area so for most people here it would probably be closer to even. Daycare is expensive, but a nanny would still be more expensive.

[auberge]

It's so brutal. Our mortgage and daycare/private K cost are within dollars of each other. Both about 24% of our take home. Wah

[lishie]

We're LCOL, and daycare for two full time was double our mortgage.

[niq]

It depends somewhat on where you live, daycare costs vary a lot and doesn't always line up with COL.

But yes it's crazy expensive. We have high housing costs (but not NYC/Bay Area high) and full time infant care for one is still more than our mortgage.

[justjen]

The first paycheck of the month is allocated to daycare, the second to mortgage. We fit all other bills in around that. so fist bump of solidarity

[kershnic]

HCOL. Our relatively affordable daycare (not in the slightest bit fancy...) is going to be more than our rent each month. Unfortunately I think that's pretty normal.

[mswax]

Yes, daycare is expensive. I have 3, and even though only 2 were in full time care last year, the cost for childcare was almost as much as my take-home pay. What I really struggle with is how to "change the system." I mean, the daycare providers in centers aren't getting paid much, and I don't think the daycare owners are bringing home outrageous sums of money, so how can we make the system work for everyone?

[cajunmom]

Aug 3, 2015 8:12:57 GMT -5 mswax said:

Yes, daycare is expensive. I have 3, and even though only 2 were in full time care last year, the cost for childcare was almost as much as my take-home pay. What I really struggle with is how to "change the system." I mean, the daycare providers in centers aren't getting paid much, and I don't think the daycare owners are bringing home outrageous sums of money, so how can we make the system work for everyone?

Higher wages.

[mswax]

Aug 3, 2015 8:14:12 GMT -5 cajunmom said:

Aug 3, 2015 8:12:57 GMT -5 mswax said:

Yes, daycare is expensive. I have 3, and even though only 2 were in full time care last year, the cost for childcare was almost as much as my take-home pay. What I really struggle with is how to "change the system." I mean, the daycare providers in centers aren't getting paid much, and I don't think the daycare owners are bringing home outrageous sums of money, so how can we make the system work for everyone?

Higher wages.

For who? I'm an engineer with a VERY decent salary. I'm sure my issues pale in comparison to many others.  People shouldn't need to bring home six figures to send their kid(s) to safe, nurturing daycare! 

And for the record, my kids go/went to a VERY affordable in-home daycare, with the exception of DS2 who went to a center for pre-k.

[cilantro]

We are looking at paying $3890 come november.

[cajunmom]

Aug 3, 2015 8:18:40 GMT -5 mswax said:

Aug 3, 2015 8:14:12 GMT -5 cajunmom said:

Higher wages.

For who? I'm an engineer with a VERY decent salary. I'm sure my issues pale in comparison to many others.  People shouldn't need to bring home six figures to send their kid(s) to safe, nurturing daycare! 

And for the record, my kids go/went to a VERY affordable in-home daycare, with the exception of DS2 who went to a center for pre-k.

I was kind of being tongue-in-cheek, but you're definitely right in that people shouldn't have to make six figures to be able to afford daycare and also that daycare owners aren't rolling in the dough. 

Universal pre-k would help, at least with reducing the time that full time care is needed. 

[magdala]

Aug 2, 2015 14:27:40 GMT -5 swank said:

So for some reason I am just now getting around to running the numbers on daycare costs for two kids.  We chose the one we liked the best but it was also the most expensive.  I guess with all the stressors of this past year and now the readjustment to two kids in full-time care (we've had a nanny since DD was 6 months old) I didn't pay much (or any) attention to costs.

So it looks like 30% of our net monthly income is going to daycare. This is insane right?   We pay 20% just for PITI for our house. 

Granted, we live in HCOL and this daycare is not exponentially more expensive than others it's just a little more expensive. It is only for one year since DD is 4 and will be in K next year.  But, wholly jeebus that's a lot of money.  

Anyone want to commiserate or am I sitting alone here in the corner?  

You are not alone.   I am in metro Boston (another HCOL) and my daycare costs more than my house too...and we just bought a newer, more expensive house in a great school district.  And the daycare costs more than that house too.   I haven't worked out the percentages, but the amounts are stunning. 

We just have one daughter who just turned one.    Here the biggest expense is for infant care and the state defines infant as up to 18 mos.   Once DD passes that threshold, her daycare costs do go down and the daycare cost will be lower that the PITI.  The months between September 1 (new mortgage) and January 1 (DD turns 18 mos.) will be very tight.   We love our daycare...we found a great set of people that our daughter adores and they adore her.  It would just be nice if it cost less.

[ribollita]

Ours is equal to our 15-year mortgage in months with five Mondays and still high in other months. We go to a moderately priced center for our area. Hang in there, K is just around the corner!

[magdala]

Aug 3, 2015 8:25:54 GMT -5 cajunmom said:

Aug 3, 2015 8:18:40 GMT -5 mswax said:

Universal pre-k would help, at least with reducing the time that full time care is needed. 

This is why family leave should be important.   Most of the countries in Europe give every parent paid family leave at the birth of each child...in some places up to a year.   This family leave is in addition to vacation and sick time.   If each parent had four months of paid family leave, we could use some of it to delay sending each baby to daycare for several months and reduce the cost of daycare for each family.   Infant care at a day usually has the highest price, so delaying sending a baby to daycare for several months could seriously benefit families.

[cajunmom]

Aug 3, 2015 8:44:38 GMT -5 magdala said:

Aug 3, 2015 8:25:54 GMT -5 cajunmom said:

Universal pre-k would help, at least with reducing the time that full time care is needed. 

This is why family leave should be important.   Most of the countries in Europe give every parent paid family leave at the birth of each child...in some places up to a year.   This family leave is in addition to vacation and sick time.   If each parent had four months of paid family leave, we could use some of it to delay sending each baby to daycare for several months and reduce the cost of daycare for each family.   Infant care at a day usually has the highest price, so delaying sending a baby to daycare for several months could seriously benefit families.

Yes, that would be close to ideal. Butbutbut evil Socialism!