Having a child is a joy — yes a bundle of joy that comes with a big price tag. And while many expecting parents plan for things like the nursery, diapers, toys, and cute baby shoes, a big expense might be overlooked: that is childcare.
If both parents work and plan to continue working after the child’s birth, childcare is a big bill that comes quickly on the heels of the delivery and all the other baby expenses, and it continues for many years afterward. Figuring out how to deal with childcare expenses will require planning ahead, because almost all options are costly, unless you have a family member who could babysit for you daily — for free.
The options are not a mystery; it is either sending the baby to day care or hiring a nanny — often a live-in full-time nanny. Some people with demanding work schedules and a busy social life may find it necessary to combine both.
What makes sense for you is largely based on your comfort level and requirements. But the costs are a big deal, too. Here are a few points to keep in mind.
Day care
Day cares have many advantages for parents in terms of sustained quality and expectations. But the costs could be really high for the number of hours you will get. Most day cares close an hour or so after typical office hours, so if you’re looking for some free evenings, you probably will need to get additional babysitting options lined up — at additional costs as well. The same goes for holidays or when your child is sick.
In addition, day care costs often rise annually. So similar to rent and other inflation-sensitive areas of expenses, plan to pay more every year. You will also need to plan transportation if your work hours don’t match the opening hours or location — that is another added expense.
But on the plus side, day care expenses are predictable, and there are hardly any surprises. And day cares vary in facilities and costs, so you might find something that meets your budget.
Live-in nanny
Live-in nannies provide more convenience. Remember those date nights you planned to have with your spouse after the child is born? A live-in nanny can make them happen. This convenience often comes with a higher price, however. A qualified live-in nanny could cost as much as a day care or more. But that is not all, a live-in nanny will require a place to stay, which may require moving to a bigger place.
Privacy aside, having an extra person in the house will add indirectly to your monthly expenses. Utilities and food are the first thing you might notice. You also may need to take the nanny with you on trips and be responsible for the nanny’s health care requirements.
Sponsoring a nanny in the UAE also is an additional cost and responsibility. While you may switch day cares in a day if you’re not happy with the service, terminating a nanny and hiring another is a lengthy process. You may need to pay for a flight back to the nanny’s home country if this person does not find a new sponsor immediately.
All of these costs and obligations must be taken into consideration.
A combo solution
If your job and social life won’t allow for day care limitations and you decide to have a live-in nanny, you might find after a while that your growing child is missing socialising with peers. That is when you might consider addition a couple of mornings or afternoon at a day care.
This combo solution may be perfect — your child will get the personalised care of a nanny without missing out on socialisation, and you will get a lot of convenience and flexibility in schedule. But be aware that this is a very expensive solution. So unless your household income is stable and solid, you might not be able to afford this option. In many cases, parents find that having one parent stay home makes more financial sense, if this parent’s salary is hardly covering childcare.
Before jumping into any of these conclusion, take a good look at what you can afford and where you’re in your career. Sometimes sticking with your job (even if it doesn’t pay much) will position you to find something better down the road. In other cases, taking a break from work can help you avoid childcare expenses and spend these precious years with your growing child.
The writer, a former Gulf News Business Features Editor, is a Seattle-based editor.
Plan for childcare
Know how much this will cost you monthly
Plan according to your requirement and budget
Research all the costs of each option
Know your responsibilities in each case
— R.O.
