Parents: Would you quit your job to save on childcare?

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Quit your job...to save money? While this may sound counterintuitive, it's exactly the decision some parents make to deal with skyrocketing childcare costs. According to research from the National Association of Child Care Resource & Referral Agencies (NACCRRA), putting a 4-year-old in full-time daycare for a year in Mississippi costs $4,650. Sounds expensive, but relatively doable? If you happen to live in Washington, D.C., the cost soars to $18,200. Even more stunning, the figures for infant daycare are higher than annual public college tuition in 36 states. With job growth on the upswing and more people going back to work, new employment may mean some tough decisions for parents. In some cases, childcare costs combined with commuting and other expenses may push households to downsize from two incomes to one.

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For former Fulbright scholar Jacqueline Edelberg, her choice was made clear when she realized her nanny's income would exceed her own. "As a starting-out adjunct professor, I'd make $45,000 a year; as an instructor, considerably less, and no benefits. Either way, my nanny would out-earn me," says Edelberg, who wrote How To Walk To School: A Blueprint For A Neighborhood School Renaissance. And even if childcare costs are relatively reasonable, tax laws may be another factor to consider when deciding whether to outsource childcare.

When Kristin Maschka was laid off from her part-time job at an internet start-up around the time her daughter (now 11) was born, she and her husband ran the numbers and were surprised by what they saw. "We looked at my income and the cost of childcare, and also noted that my job would put us in a higher tax bracket. The cost of childcare was not the issue, the issue was a tax policy from post WWII -- joint filing -- that was designed to push women out of the workforce," says Maschka, author of This is Not How I Thought It Would Be: Remodeling Motherhood to Get the Lives We Want Today. Today, she urges fellow parents to look at longer-term financial considerations -- including future earning potential and retirement savings -- when making the choice to have a parent provide childcare or to hire outside help.

Edelberg says she's confident she made the right choice for her family: "Like many of my park friends, I reasoned that work would always be there waiting for me on the other side of mommy-hood, but caregiving, as tedious and difficult as it frequently is, would not. When I look at my two adorable kids, Maya and Zack (now 13 and 11), I know them, and they know me. And for that, I am eternally grateful."

Parents: Did you (or would you) quit your job to save on childcare costs? Please share your story in the comments section below.

[TheCareerLady]

My husband and I have done just that. We were surprised with twins so it became not the cost of 1 child in child care but 2. Imagine 2 infants in child care, that's a mortgage payment! So we went the road (at the time) less traveled. We took turns working from home.

My husband always owned his own company and I took turns being an employee and consultant. So at times it was just him at home then it was just me...on and on. We were also blessed to have the help of (husband's) retired parents when our schedules just couldn't accommodate being home.

Sure both of our careers/businesses took a hit from time to time. We now see it as totally worth it. Looking back it was tough, but the cost of child care would have been tougher.

[NonPC]

You, like a friend of mine, were lucky that you had nearby parents to help. We, however, live far away from all of our family.
What did you happen to do for health insurance as you were both self employed? That alone is like a mortgage payment (even more). And that is if you can actually get it.

[sevenoutofnine]

I lost my job 2 years ago. I desperately wanted to stay home. What made me go back to work was the cost of health insurance. The premiums at my husband's work were $100 less than our mortgage! That didn't include co-pays, etc. We have 2 special needs children who use a lot of health care. We pay for child care for both even though one is 12 yo. We need both salaries to pay for health care. Child care isn't the only factor in deciding whether or not a parent works.

[NonPC]

As I was making good money to be able to afford quality childcare and after-school care, the numbers worked for me.
Unfortunately, the company I was working for closed, and I have been unemployed for a year now. While I have been helping my husband's company with its marketing (my background) we will be unable to afford to send our kids to private school. (I know that this sounds like a boo-hoo to most people, but my son needed a smaller class size to learn properly, and his public school in Dallas could not accommodate him. I am also driving around a paid for 2000 Ford Explorer to put our "earnings"/expenditures in context for you. ;-) )
I would love to be able to go back to work but cannot find a company or position that I truly care about or even want now that I have been able to finally "relax" and devote more time to my kids and family -- as well as our OWN business (I do believe, however, that QUALITY time trumps QUANTITY time if you are working full time.)
The constant rushing to/from work to be able to drop them off and pick them up in time took its toll over the last decade.
Where are there companies and jobs that promote a more flexible "if you get your work done, we don't care what time you spend at the office" attitude? I was fortunate to have that in my last job and have gotten spoiled. Seems like most companies tout a work/life balance but few, if any actually promote it. (I used to work 9-5 with very intelligent people who got their work done and done well, and were able to see their kids off in the morning to school and eat dinner with them early enough at night.) This 8-5 b.s. that has been put upon all of us, is just that. B.S.
Unfortunately, due to health insurance coverage, I will most probably be FORCED to go back to work outside of our home/business.
Sadly, I've even contemplated getting a "paper" divorce (not from the Church) just to claim single parenthood and state-sponsored health insurance for our kids.

[kindatangy]

There is a major factor to consider which does not appear to be mentioned in the article. That factor is that when a person is unemployed he/she is not paying into Social Security, is not participating in a pension, 401(k) or 403(b) plan, and is generaly not otherwise saving for retirement. This should factor significantly into the equation, and I fear it is often overlooked.

[NonPC]

Agreed. That's another thing that worries me. I don't want to have to eat "government cheese" in retirement! ;-)

[harvyk100]

Mrs Harvyk did just that, it was not worth her time to work as the cost of childcare + petrol to get too \ from work was going to be more than she would be earning. When we did the sums, we where going to be around $50 a week worse off if she worked. We for some reason didn't really feel like subsidising a business for the sake of it.

[Niqui_lady]

I did stay home because of childcare. We have two daughters who are 22mos apart and after I calculated the cost of daycare for both (still in diapers which makes it even worse) and gas to get to the nearest town, I found I'd have to make at least $12.50 per hour in a 40hr week to break even. Anything less and I'd basically be paying to work for someone. For us, it was definitely money-saving. I'm glad that I got the time to be with my little ladies. They're amazing but I do miss work. Now our situation is changing and it's time to go back. It's a bit daunting actually. :)

[Tobalcane100]

Let's first say that there is no wrong or right way of providing care for your child either home with parent or daycare. My wife and I were very fortunate to have income to support the $18K/year cost of day care for our two girls (in series, 6 years apart in age). However this is a daycare "company" that has centers throughout the United States. For the $18K/year for infant to $5K/year for 5 year olds (it gets cheaper when the kids get older), comes with procedures and policies put forth by the company and the center's director to follow and practice with their staff. The centers are audited every year. All child care providers have their education and license. All facilities are modeled like a small school with class rooms and different play grounds depending on age. The child's day is structured with play, learning, and social interaction. Also, form an adult point of view, a form of networking. Once they leave daycare and into school (starting in kindergarten), they already know a quarter of their class mates. And, as Kristin Maschka mentioned, my wife and I have progressed in our careers with in that 11 year span when our kids were in daycare. Unfortunately, if the mother or father stops to take care of their children it also stops their work experience. Once they go back into the work force, they are 5 or 10 years behind their peers who did stay in their jobs who went the daycare route.

[KristinMaschka]

Great piece Amy, though I suppose I'm partial since I'm quoted! Here's a link to a post on the tax policy issue. http://www.kristinmaschka.com/2011/04/17/tax-day-question-can-i-make-enough-to-pay-for-childcare/

I'll add that in hindsight I wish I had tried hard to keep working in those early years. I only stayed out for 3 but contrary to the comment about "work always being there" I've found and talking to mothers for my book I found that it is not nearly as easy to re-enter as we like to think or believe. A great resource on that front by the way is iRelaunch.com.
Kristin Maschka