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.