NEW YORK (CNNMoney) -- After factoring in the rising cost of child care, the daily commute and other work-related expenses, a growing number of mothers are figuring out that having a job just doesn't pay.
"It comes down to a cost analysis and I have several clients that have taken the route of quitting," said Anna Behnam, a financial advisor at Ameriprise Financial in Rockville, Md. "Factor in taxes, transportation costs, clothing and lunch -- what is the true net that you bring home after salary?"
Over the past few years, the debate over which lifestyle is more financially feasible -- working and paying for child care versus staying at home -- has come up more often among Behnam's clients than ever before. For most working parents, child care is by far the greatest expense. In 2010, the cost of putting two children in child care exceeded median annual rent payments in every state, according to a report by Child Care Aware of America.
The recent run up in gas prices has only drained paychecks further, shaving 8.7% off of the average worker's annual income, according to the Oil Price Information Service. And then there are the rest of the expenses that add up for workers, including clothing and dining out during the day, which are also on the rise.
Andrea Hayken, 34, made about $45,000 a year as a third grade teacher in the Fairfax, Va. county public school system. But licensed daycare for her now four-year-old son would have cost $2,000 a month, eating up nearly half of her before-tax income.
Since her husband, an attorney, earned more money than she did, it made more sense for Hayken to be the one to stay home.
"When all was said and done, there just wasn't enough money to make [working] worth it," she said.
Hayken, who now also has a two-year-old daughter, says she is ultimately very happy with her decision. But other moms are more conflicted. "It's a complex decision where you are weighing all sorts of factors," said Ellen Galinsky, president and co-founder of non-profit Families and Work Institute. "It's your current costs and your future earnings and your desire to be at home, in combination with the desire for your children to have early educational experiences."
In the end, many lower- and middle-class mothers just don't make enough money to afford to work, she said. Either as a result of layoffs, dismissals or voluntary exits, roughly 177,000 women left the labor force in March, bringing their participation rate to a level not seen since 1993, according to the Bureau of Labor Statistics.
Even though women surpass men in educational attainment, they earn an average income of $35,776 a year, about 20% less than their male counterparts, according to the Labor Department.
If I was a mother that had this same problem I don't know what I would do. I mean there is nothing that you really could do more. If you aren't able to get enough food on the table, your paying for your kid to go to daycare while you are trying to get enough food on the table then its just like what are you supposed to do. You would think there would be other options in the city for kids but those other options would mean probably not putting your kid in a good place and you dont want that either. The only thing i can think of is move out in the country. Even then your not guarantied a job.
ReplyDeleteChelsey Daly P3
Life is tough. Everything is so expensive now. Gas prices are way up, and yes childcare is very expensive! Coming from a family of 5 children, their was a point in which 3 of us kids were in daycare at the same time, and that wasn't at all cheap, but eventually they go off to school, and their is no need for daycare anymore. In my opinion I think that people need to have some sort of income, even a part-time job to work, when your spouse isn't at work, and that doesn't mean you have to send your children back to daycare, your spouse can always watch them, but lately you see many unemployed people always relying off of others for money.
ReplyDeleteSavannah T7
It is ridiculous that childcare is so expensive. It seems so wrong that a person would be forced out of his/her occupation, that positively contributes to our country, because daycare is so unaffordable. These people are trying to succeed, and trying to provide for their families. It makes no sense to me that (some) tax dollars go to people that sit on their butts and do nothing, and these people that try to provide for their families independently are forced out of thier jobs and won't recieve help from the govt. until they are essentially jobless. I don't think that the govt. should get too involved in anyone's life, but if they are going to give out money, it should be to these people who are actually putting and effort forward.
ReplyDeleteAnna C3
I think it is terrible that child care costs are becoming so absurdly high. $2,000 a month for day care? That's around $100 a day. So you just work for someone to take care of your child and the gas money it takes to get to work? I think it's sad that people can make the same amount of money sitting at home. Our country used to have a fairly good work ethic, but we can't continue this when people are forced out of jobs like this. This way, how can we expect to teach future generations to work hard? And how is the government supposed to make revenue and end the recession when people are quiting their jobs and receiving monthly checks for the unemployed? I understand that it would be cheaper to stay home and watch your kids than pay for daycare, but I don't feel we should just collect our government's precious money when we are so deeply in debt. There are many ways people can work from home, and I feel it would be a better choice for our hurting economy.
ReplyDeleteShannel D3
I think its sad how expensive everything is today. Gas prices are going up and child care is $2,000 a month! That is just crazy. I can't imagine how much gas is going to be in 10 years. I don't think its looking very good. I think its also sad to see people working so hard trying to provide for there families and still not getting enough money. Its just not right.
ReplyDeleteSteph C3
I come from a family of 12, and not once has my mom had to put any of our kids into daycare. Yes, she has hired babysitters or family friends to watch the kids while she went to work and had errands to run, but never was the cost up to $2,000. There are definitely ways around spending large amounts of money to have your children in safe childcare. Options are out there, such as retired grandparents, aunts and uncles, neighbors, young high school or college students, to take good care of your kids. People need to take their time to receive advantages of opportunities given to them. My main point here is there are ways to avoid spending $2,000+ on each kid for daycare each month.
ReplyDeleteLiana H3
VERY LAST COMMENT!
ReplyDelete