Daycare Costs Hurting Budget!

Childcare costs are really hurting Kathy's budget, and she doesn't know how to maintain.

QUESTION: Kathy and her husband are paying $800 each month in childcare.  Kathy and her husband make about $55,000 a year, which is a pay cut from what they had been making.  What can they do to make ends meet if they have to keep paying for childcare?

ANSWER: You have taken a huge pay cut and that’s what is straining your budget.  Childcare is a major expense for you, but it’s the loss in wages that you’ve experienced over the past year that is the main problem.  Women who make $20,000 or less working outside the home are not making enough to pay for a year’s worth of childcare and other work-related expenses, so they might as well stay home with the kids.  The issue here is your decreased income and increased expenses.  You’ve just had a temporary setback and you need to get your income back up.