Category Archives: Finances

Lack of Daycare Hits European Families Hard

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These are the kinds of stories that break our hearts.

In the past few days, a number of articles have popped up in newspapers worldwide analyzing the rising cost and dwindling availability of childcare. Reports from the United Kingdom lament the fact that the cost of nannies and daycare centers have forced a growing number of families to have one parent leave the workforce to stay at home with the children. Sadly, in Germany, in addition to facing the same rising costs as the UK, parents are facing a childcare and early education crisis that is affecting more than just incomes.

An article published earlier this year explains how the fall of the Berlin Wall led to an influx in the number of children vying for spots in state-assisted childcare centers. As a result, soaring costs and limited availability (about 23% of children under 3 yo are in daycare, despite a much greater demand for it) are making it so difficult for parents to balance work and home that the birthrate has actually declined in the last 10 years and the trend is expected to continue.

The whole driving force behind SittingAround.com is our desire to help improve the situation of parents everywhere, so of course we find it sad to think that a lack of balance may be causing people to delay or forgo having children. One proposed solution to the problem is an advance akin to a student loan (as if parents need to pay a college tuition twice!) and there have also been rumblings in the UK about changing the laws to give parents more discretion concerning childcare, which will hopefully increase options. In any case, it will certainly be interesting to see how these countries will look to solve the childcare cost/availability issue in the future and we’ll be keeping our fingers cross for affected parents during this stressful time.

Babysitting Coops Already Saving Families Over $100,000 Per Year

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We opened SittingAround.com to the public less than a month ago, and already families using our site are saving over $100,000 a year.

There are over 500 families participating in over 100 coops on SittingAround.com today. Based on the use we’ve seen so far, families who are participating in coops will save between $100 and $500 per year, with an average savings of around $250 per year. Multiply $250 by 500 families and we get an annual savings of $125,000 per year!

While we’re very happy with the growth of coops so far, we’re just getting started. We want to bring coops to as many families across the globe as possible and change the way families think about childcare. Our goal is to have 100,000 families and 10,000 cooperatives by the end of 2012.

Coops save families money by eliminating the need for paid babysitters. Instead, families receive free babysitting from other parents in exchange for returning the favor. While coops have existed for many years, until recently they have been difficult to coordinate and manage. SittingAround makes coops easy and, in doing so, helps families across the world save on the cost of childcare.

Paid Parental Leave: Is Having a Baby a Luxury?

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How much time did you take off when your kids were born?

For me, it was four weeks. Two weeks paid by my employer and another two weeks that was comprised of every possible vacation/sick day I had. By American standards, that’s not too bad. By most other standards, though, it is.

First, those paid weeks that I took are not guaranteed to me under any federal law. According to the Family and Medical Leave Act (FMLA), new moms may take up to 12 weeks off, but that time is unpaid. Employers are not mandated to pay for any maternity leave, they simply have to allow new moms to take it. While I appreciate the FMLA, I don’t think it goes far enough. For most families, a 12-week unpaid leave is a luxury they can’t easily afford.

Compare this with our neighbors to the north and the south. Canadians enjoy a notoriously generous parental leave policy, receiving an entire year at 55% of their salary. Mexicans are guaranteed a lesser 12 weeks off but at a full 100% pay. And, should you venture to Europe, you’d find that many countries there offer a year — or more! — for new parents to care for their children.

As both a mother and a professional, the American parental leave laws are near and dear to my heart. By having such stringent policies, we are, in effect, forcing women to choose between spending critical months with their babies and furthering their careers. For many, financial considerations don’t even allow women to choose — it’s work or you can’t pay the bills.

I think the FMLA could use an overhaul. Thankfully, so do a lot of other people as well. If you’re interested in getting involved in this and other issues affecting families, check out Mom’s Rising, an advocacy group working to build a more family-friendly America.

Biggest Threat to Family Finances? It’s Childcare.

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Everyone knows childcare is expensive. But some may be shocked to learn just how expensive it is and the enormous threat it poses to the family finances.

According to a recent Washington University in St. Louis study, the cost of quality childcare is the greatest threat to families’ financial security. Childcare makes up the single greatest portion of the average family’s monthly expenses — families spend more each month on childcare than they do on housing!

“Childcare is so expensive that income needs for a one-parent family with two preschoolers are equivalent to those of a one-parent family with five teenagers,” states the report.

It’s no surprise that families are looking for ways to save on childcare costs without comprising the quality of care their kids receive. Savvy parents are seeking alternative arrangements, such as nanny shares during the week and babysitting coops at night and on the weekends.

What are your thoughts on the dramatic costs of childcare? Have these costs put your own finances at risk?