bostonbubble.com

[kdog]

[gadgetmaniac]

As a father of a two-year old, I wanted to make sure that working couples who are thinking of starting a family dont underestimate the costs of childcare.

A full-time nanny in Boston will cost anywhere upward of $500/week. A responsible nanny who speaks good english will cost $650/week and up. There are no bargains. The nannies meet each other at parks and know the market rate for the area. Daycare can be cheaper ($250-500/week) for one child, especially in a home daycare setting, but still a considerable expense. If both people have jobs where they might need to work late on any given day and there is no family in the immediate area, a nanny is the only option.

Now, consider a scenario where one child goes to preschool and another is home with a nanny (or two children are in daycare) and it is easy to spend $50,000+ a year on childcare. Obviously, most people will never need to spend this much, but I know lots of people who do. Factor in taxes and the second person working needs to make a lot of money at work just to break even with childcare costs.

Keep this in mind when you think you can afford a property worth almost 3x your annual income. This is going to be a lot harder when you start a family.

Why go through the stress of worrying about your finances that much? Right now most people can save at least $1000/month by renting. It will probably be at least a few years before the housing market recovers enough so that property appreciation will offset the additional cost of home ownership. If you have a few kids and are in over your head, it is a lot easier to get out of a rental.

[AgentGrn]