Daycare - What to Financially Expect When You’re Expecting
By Nick Hemsted
As a financial advisor and soon-to-be father of three, I understand the challenge of finding the right daycare for your children. It's natural to have concerns about cost, safety, and whether your child will receive the attention they need. In this article, I want to share some practical tips I've gathered over the years about navigating this process, incorporating daycare costs into your budget and considering the possibility of one parent staying at home.
Finding the Right Daycare
The task of finding the right daycare can feel overwhelming, with considerations like price, quality of care, and availability to take into account. One crucial piece of advice is to start interviewing daycares as early as possible. Many facilities have lengthy waitlists, so it's essential to act quickly to secure a spot. In the event of facing a waitlist, it's important to establish a support network of trusted individuals who can help take care of your child until a spot becomes available. This support circle can include your parents, siblings, people from your church, aunts, uncles, friends or anyone who you trust with your child’s life. It will also be important to ensure you have a big enough circle and have as many people to rely on as life happens and sometimes people in your circle will be unable to help.
Incorporating Daycare Costs into Your Budget
Incorporating the cost of daycare into your budget is a significant adjustment for any family, whether it's their first, second, or third child. One effective approach is to calculate the expected weekly expense and start setting aside that amount from your current budget. This will give you plenty of time to adjust to this new budget and tweak it until you feel good about what you’re spending and saving. Setting aside that amount now will also help you build up a savings. I have two recommendations for what to use these new savings for: pay down any debts or keep it for a rainy day. This will prevent you from potentially taking on additional debt in the future.
Considering Stay-at-Home Parenting
The decision to become a stay-at-home parent is both exciting and daunting. Both personal fulfillment and financial considerations play crucial roles in making this decision. For my family, it came down to a thorough examination of our finances and reevaluating our career satisfaction. After careful consideration, it became clear that my wife’s desire to be a stay-at-home mom aligned with our lifestyle and financial goals. It's important to note that the value of a stay-at-home parent should not be underestimated, with studies showing an average "salary" of $178,201 per year for the work they contribute during their on average 92 hours of weekly work!
Ultimately, the decision to stay home with your children is deeply personal and can be filled with uncertainty. If you're contemplating this choice and would like to explore your options further, I would be more than happy to review and discuss your situation.
Finding the right daycare and navigating the financial considerations of parenting can be overwhelming. However, with careful planning and consideration, you can make informed decisions that benefit both your family and your budget. Whether you choose to enroll your child in daycare or opt for the role of a stay-at-home parent, remember to trust your instincts and prioritize what works best for your family's unique situation. By taking the time to explore your options and lean on support networks, you can find peace of mind knowing that you're making the best choices for your children and your financial future.
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Disclosures: The material presented by Nick Hemsted is for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Actual economic or market events may turn out differently than as presented. Nick Hemsted is a Financial Advisor with Legacy Financial Group. Advisory services are provided by Legacy Financial Group, a registered investment advisor with the Securities and Exchange Commission. Materials posted to this site are from external sources and are provided for your convenience in locating related information and services. Legacy expressly disclaims any responsibility for and does not maintain, control, recommend, or endorse third-party sites, organizations, products, or services, and make no representation as to the completeness, suitability, or quality thereof.
