Married couple with 2 kids in primary school and a mortgage.
Joint income €130,000
Income tax, USC & PRSI €40,000
Mortgage of €450k over 25 years cost PA €30,000
Crèche cost €21,000
Income less tax, cost of housing and childcare €39,000
Creche for more than 1 (even 1) can be so punitive, it can be worth opting out of the workforce for a short time. Parental leave is not used enough in this country- one person take the first 26 weeks on top of maternity leave, then the other parent the second- while not losing your job. It can be a super way to cope with the first year or so.We are one of these families with a high income and childcare costs. For now its manageable because its only one child but when the second starts in childcare, the cost of childcare will easily exceed our mortgage payments and really eat into our disposable income for the next 4/5 years.
Why is it only a cost for 4/5 years? Most people need after school care of some sort for their children right through primary school.The real issue I see is that childcare is a major cashflow headache for most families, even the high earners. I would much prefer to see a system in place to help parents manage the cashflow whereby you can choose to pay 50, 60, 70% of the monthly cost and then continue this rate of payment after childcare has finished, e.g. stretch 4/5 years cost over 8/10 years
Parental leave is fine if you are in a State job or in a large organisation but for people who have key roles in a small business it's just not an option.Parental leave is not used enough in this country- one person take the first 26 weeks on top of maternity leave, then the other parent the second- while not losing your job. It can be a super way to cope with the first year or so.
The French have a system where pre and after school care is provided in the Schools, utilising their insurance etc. That should be looked at here.Additionally, I think we should utilize the school system (buildings, processes, people)
4/5 years of peak cost where you might be paying full costs for 2 children. Beyond that, afterschool or half day costs while still significant would be a lot less and more manageable. In our specific case, we will probably have ~3 years where we are paying full costs for 2 childrenWhy is it only a cost for 4/5 years? Most people need after school care of some sort for their children right through primary school.
Paid parental leave would provide this, not pump up prices in the sector and not leave you paying a childcare bill over an extended period.For those families debating whether dropping one income is justified or not, having €600/700 more cashflow per month would take some of the financial pressure off the decision and then at least it is purely a "what's best for the family" decision
And that shouldn't be the case. Enabling it for all has the added benefit of providing additional short term employment opportunities across the board.Parental leave is fine if you are in a State job or in a large organisation but for people who have key roles in a small business it's just not an option.
What are you supposed to do if you run a small business? Disappear and let it go to the wall?And that shouldn't be the case. Enabling it for all has the added benefit of providing additional short term employment opportunities across the board.
Not suggesting that at all.What are you supposed to do if you run a small business? Disappear and let it go to the wall?
(bangs head against wall)I'm suggesting that you would bring someone in in a temporary employment situation for the time it was more financially viable for you to stay at home. Even small businesses should be thinking of long term succession planning, illness, risk etc.
I don't think parental leave solves the problem. It can help manage the first year as you have suggested but after that once your child enters childcare, you can't just take them out without the risk of losing your spot. You would be in a far worse situation if you lost your spot for the sake of those 6 monthsPaid parental leave would provide this
OK; if you are completely indispensible do you have any plans for risk mitigation in any of the other circumstances mentioned.(bangs head against wall)
And no child should go hungry and there should be world peace. In the real world of tight margins and a lack of skilled labour that's just not possible.And that shouldn't be the case. Enabling it for all has the added benefit of providing additional short term employment opportunities across the board.
Correct, and I forgot the whole 'spot' problem. Do you still have to pay a retainer to keep the place or how does it work now?I don't think parental leave solves the problem. It can help manage the first year as you have suggested but after that once your child enters childcare, you can't just take them out without the risk of losing your spot. You would be in a far worse situation if you lost your spot for the sake of those 6 months
Lots of people think that they will take child #1 out while they are on maternity leave for child #2 and save the cost of childcare. But what they often realize too late is that there is no guarantee that a spot for either child will be available when both require it
Stop trying to play the poster.And no child should go hungry and there should be world peace. In the real world of tight margins and a lack of skilled labour that's just not possible.
In a small business plenty of people are indispensable over a period of 3-6 months. Especially if they are part of the team building the business. If a key person is hit by the proverbial bus the business runs an increased risk of failing.OK; if you are completely indispensible do you have any plans for risk mitigation in any of the other circumstances mentioned.
Eh?Stop trying to play the poster.
Is that question directed at me personally? If so, why? My days of raising small children are long over.OK; if you are completely indispensible do you have any plans for risk mitigation in any of the other circumstances mentioned.
It was, but OK if not relevant to you now.Is that question directed at me personally? If so, why? My days of raising small children are long over.
You have no business posing such questions to me on a public forum like this, especially as you are anonymous and I am not, and as I had neither indicated nor confirmed that I had a vested interest in the subject being discussed.It was, but OK if not relevant to you now.
Sincere apologies there was absolutely no intention to offend and the question was meant in general terms.You have no business posing such questions to me on a public forum like this, especially as you are anonymous and I am not, and as I had neither indicated nor confirmed that I had a vested interest in the subject being discussed.
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