The decision to quit a job or pay for childcare goes far beyond just finances. Deciding on the person who will care for your kids is an emotional one and whether a parent wants to work can go beyond just the need for money. Either way, it can be important to evaluate which would cost your family more – childcare or unemployment. Then, at least you can use that information as part of your decision making process.
Typically childcare is more expensive for babies and toddlers. It begins to drop once children are preschool age and then even more when a child enters school. Often this leads many families to decide one parent will stay home for those first couple of years, as the cost of childcare may even be more than one’s income.
In addition to the cost of childcare, work does also cost money. Commuting, clothing and special equipment are often part of the cost of working. There are also indirect costs due to the loss of time for smart shopping and eating at home. Many busy working families spend far more money on convenience items, grocery shopping and restaurant meals.
Another important factor to also consider is taxes. With more family members on less income, the tax break from not working can be significant. It is certainly something to consider when doing a cost analysis.
If you want to quit your job or work less to save money on childcare, it is important to weigh all these factors in comparison. Literally look at the cost of working (including childcare) compared to the cost of not working. Do a trial run or at least imagine not working. What would you do different? How will that affect your finances? Often times many families are surprised how quitting can even save them money!
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