Finance · The Irmingers

:: Money Talks :: Cost of raising 2 kids

One thing I have realised in the course of researching childcare option for when no. 2 comes is that while we are no longer in Manhattan, we are still very much paying Manhattan prices when it comes to childcare. There are 3 things cheaper here across the Hudson – property prices, sales tax and beer (hello $3 happy hour beer prices).

Mr. P and I are in banking, we are at work at least 10 solid hours a day with another 1 hour spent travelling to and from the city. That makes 11 hours of childcare coverage required. We had considered the following options.

1. Keep C in school and hire a full time nanny for A

This is the most expensive option. We pay USD 2,150 a month for C’s school + daycare hours (excluding after school activities, that’s another USD 300 a month). A full time nanny for 55+ hours would likely set us back USD 900 a week. That means almost USD 6,000 a month on childcare costs alone.

2. Take C out of school and hire a full time nanny for both

For 2 kids, we would pay the nanny a couple of bucks more an hour, this works out to be USD 1,000-1,100 a week, USD 4,400 a month. We could try to enrol C for the free public nursery problem (we missed the cutoff but could be placed on a waitlist). The most cost effective option but C loves her teacher and the structured environment is good for her BIG PERSONALITY. Plus this is the states, even if we pay well, hiring someone to work >50 hours a week is difficult. Potentially we may have to pay 1.5x for extra hours. Oh and there’s the whole hidden costs of paying on the books (we have to pay employer tax), bonuses (going rate is 2 weeks), paid holidays (2 weeks) and personal days (a week).

3. Put both in school / daycare

After a fair bit of back and forth, this became our no. 1 choice. C gets to maintain some stability (she has been in 3 daycares in 2 years) and the hours suit us. However, we have a spanner in the works – there is no spot in the infant room at C’s school for baby A. Sigh!!

Daycare Comparison


I am praying hard that things will sort themselves out; someone dropping out of C’s school or a spot in an alternate daycare until C’s school has availability.

Or perhaps we win the lottery and Mr. P can be a SAHD. We can dream, can’t we?


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