Childcare - How Much Do You Pay?

Morning OzB.

What brought this question on? A fee increase letter. I will now be charged $109 per day for childcare for my 4 year old (Parramatta NSW area).

Of course, there's little real justification in the letter… I know the staff aren't getting a pay rise. Yes, cost of living (groceries, electricity, etc) has gone up… but it's an increase per child of $10 per day. With over 50 children at this centre and the owner having 4 centres, it's looking like a nice money grab of over $500,000 per year. (50 kids per centre, 5 days per week, 52 weeks a year, 4 centres).

And yes, they do have you by the balls as it is hard to move your kid when he/she has friends there, places are limited, etc.

So, here's my question… how much do you get charged per day (excluding government rebates, etc). How old is your child… and what's the postcode of the childcare centre?

Comments

  • Just under $150 a day for a 2 year old in 2060.

    Hypothetically if we had more than 1 kid attending, that basically cancels out 1 wage, so mum will probably have to stay home in that scenario.

    • 2 year old in 2060? So he/she will be born in 2058?

      • So, here's my question… how much do you get charged per day (excluding government rebates, etc). How old is your child… and what's the postcode of the childcare centre?

    • +1

      damn thats cheap not much inflation in 42 years

    • Do you know what that means? Quick, Marty! We have to go back to the future!

  • I am more interested in whether 50 children in a childcare a norm? Or it's just that specific centre? How many carer do they need to handle 50 children?

    • I think the ratio for kids aged 5 months to 2 years is 4 kids to 1 educator. Not sure about older kids.

      • not that these ratios are upheld in practice.

        • They are certainly upheld at the centre my child goes to.

        • +1

          @BartholemewH:
          Sure they aren't just cardboard cutouts placed around the centre?

    • Several rooms, catering 6 weeks to 2 years, another room 2-3 years and then 3+

    • +1

      I am more interested in whether 50 children in a childcare a norm?

      I feel for you if you are the wife I'm just saying. My deepest condolences.

  • +11

    send them to orphanage , then adopt them back when they're 6

    similar to car lease buy back, but cheaper

    • +1

      Good idea! But I'd wait until they're 15 and can work at a decent job.

    • +4

      Or just adopt a working 25yo

      • These are pretty rare now, if you get one that lives independently then well done.

  • +1

    $128 a day, 5 days a week. I think they close for 3 weeks a year so $31,360 a year minus $7,500 = $23,860. FY18 rebate ended in December 2017 so now pay $640 a week until the end of June. What bugs me is the 6 monthly increases, last one was 3.23%. They are all doing it as fee rebate increases to $10,000 for a lot of people, the full time users mainly. I thought I read somewhere government was going to stop above inflation price increases.

    • +1

      Id be surprised if the government would do that. They don't seem to give a shit about health insurance increasing faster than inflation.

    • +8

      Rebate is a lot like the first home buyers grant IMO. Just pushes up pricing.

      • Yeah, makes no difference to affordability, just goes straight to the bottom line of the providers.

  • 130/day/kid 5 days/week 2 kids. Sigh

    • +1

      Barely any money leftover for all your Xiaomi needs…

  • $130 a day for my 1 yr old

  • $110/day X 2days/wk for our 3 yr old.

    Possibly starting our 1yr old in the near future…

  • +1

    I'm next to Parra. All 3 kids went with a family daycare lady in Guildford over the last 8 years. She was lovely and the kids still visit in school holidays. About $8 per hour I think (was ~$140 for 2 days per week). For us the kids got more out of family daycare than going to a centre (KU) but that's heavily dependent on getting the right family daycare person. Happy to share details.

    • Hi would love to know more if possible? Thanks knasty.

    • Hi would love to know the details too.😊

  • +1

    Probably the $10 increase per day goes to paying the commercial rent of place that goes up >5% per year. I am guessing.

    • -1

      Well… no… out of the 4 established centres, this one is on a wholly owned property (maybe still mortgaged). The property is a converted house in a street. So… unlikely a commercial rent. It's more likely a money grab for expansion. They have plans to open another few centres.

      Looking at the amounts mentioned here, i am thankful that i have about 8 or 9 months of this left, then OOSH and school. Which is a LOT cheaper.

    • Dupe.

  • How much do the grandparents charge?

    • They outdone do it for free…. but travel costs too much as they’re in Europe

      • This should have said "They would do it for free"
        Damn predictive text on a mobile device.

        • I just imagined you being an old prospector or something.

  • +1

    $150/day for 15 month old and $140/day for 30month old - post code 2093

  • Take out a high yield investment and it pays for itself ;)

    Honestly though: if the child from 0-5 doesn't see enough of you, they won't click and have that parent-child bond with you. Also, child carers just seem to get paid for them to sleep, watch TV, colour in, nappy/bottle change, tummy time etc. If you want to raise your child up your way the more time you spend with them the better.

    • +10

      I don't disagree with you entirely… but there's another side to this. I work full time and my wife has been at home for the first few years. But being stuck at home without sufficient adult interaction isn't good for the mental state. And i am not talking about a catch up with other mums for the babychino. It's being in the workplace, using your brain and most importantly, feeling effective and having a feeling og accomplishment.

      So, to all those that have a negative feel about childcare and have the view "stay at home do it yourself", thanks for your opinion… but it's not answering the question i stated.

      • +1

        I agree with you here, although note that I am not against child care completely. I just believe your child shouldn't be in day care all week. You only see them when you are really tired after a long day, or as soon as they wake up then.

        You can have a 3 day a week job or have a 5 day job with shorter hours (eg 9:30-2:30 not 8-6) and have sufficient time with your young one.

        Child care is great if you don't fully rely on it in my opinion.

        • look, I agree with you that the primary person raising the child should be the parent. And my wife works part time, so my kid goes 3days a week so she can work. Unfortunately, for most people, part time work is either not available or not financially viable.

          I do worry if we will see the fruits of this soon, with kids growing up without parents supervision , what will they resort to?

        • -2

          @Martijn: Hmmm.

          Unfortunately for most people, part time work is either not available or not financially viable.

          Day care for 5 days a week (I've found) equals a weekly pay - some might say 2 is borderline, some might say 1. Unless you are in a high paying job, but then you should be able to afford a day or two off each week.

          Without trying to sound harsh, couples should only have kids when they can afford it. Oh and don't take out a massive loan for your dream house on Sydney's waterfront at 21. Wait until you've actually got some cash behind you first.
          Also, you should never put your child in daycare until they are at least maybe 18 months old. 12 is questionable, but can be done. Anything earlier is ridiculous.

        • @pennypincher98:

          you should be able to afford a day or two off each week.

          I have a reasonable paying job… but time off isn't something that is only my decision. My employer has a say in that as well.

          couples should only have kids when they can afford it.

          Out of curiousity… have you got kids? do you want kids?

  • +11

    This is the real cost of our real estate bubble actually. Basically it requires two working parents to have a hope of paying off a standard Aus home these days, almost without exception. Result: too many kids raised by childcare, excessive demand. Yet everyone seems to rejoice forever rising house prices!?

    • +1

      Usually the people with investment properties…. Including government, bank managers etc. They have a vested interest.

  • $145 per day. Kid is just over 1 year. My wife works in the same centre. If we had 2 kids it wouldn't be worth her working.

    After rebate is $72.50 per day until you reach the threshold.

    The teachers get paid a pittance, they do it for the kids, not the money.

    • +1

      Thanks. I know the pay is peanuts… and most i know in that industry do it for the kids. And thank your wife for putting people before money.

  • $98.50 per day, 2 year old, 3 days a week, everything included 4075. I think the price drops a little if he's in for 4 or 5 days a week.

  • $155/day for my 3yo. Right in Sydney CBD. It's expensive, but very good.

  • 2062, can’t find anything well run with spots for less than $160 and few are $180, it’s crazy. Have seen one or two places around $140 but they weren’t great.

    So so expensive.

  • +1

    That's a pretty good price for Sydney - we had to shell out $150/day for a place in the middle of the CBD (all we could get) and the staff were poorly trained and attrition was high. In Melbourne I'm paying the same as you, nappies and food provided. I don't think $500k a year is that much when you factor in the food, nappies. equipment, building and toy upkeep, outdoor upkeep, staff wages, mandatory training, accreditation costs, let alone insurance. It kills my wage but I'm glad to pay it.

    • The 500k would represent the $10 increase.

      • +1

        Even so, their costs are huge.

  • +1

    For my 3yr old:
    $68 for family day care. No food/nappies included.
    $91 for day care centre. Food included.
    $30 (after rebates?) a day for preschool.. Not sure how this works, we're only new to the childcare game. No food/nappies included.

    He doesn't go to family day care anymore, we found he enjoyed the centre and preschool more.

    Postcode 2484

  • +1

    $109/day for 2 year old in postcode 4350, all food and nappies provided. The centre charges a reduced rate as the child gets older, which accounts for the fact that they have less educators and more children in the older age groups. Ratios are regulated by the government, in babies room its 4 babies to 1 educator.

    My children used to go a non-for-profit community centre in Melbourne which charged $102/day regardless of age. Nappies weren't provided at that centre though. I was on the Parent Management committee so I know that there was not much left over after wages, utilities, groceries, maintenance and resources for the kids were purchased. That Centre was also committed to supporting workers to achieve higher qualifications and recognised when workers obtained higher qualifications and applied it to their position with a small pay rise.

    • I have found that th reduced rate with age thing cancels out the fee increase. My first kid was at the same rate for most of her time at childcare.

  • 139 a day. 3 days per week. food and nappies included. postcode 3150

  • Hrm, how much do I have to earn to make it worth sending a kid to daycare?

    • depends on your income and how many days kiddies goes
      But 2 kids in childcare is borderline for us, almost breaking even cost vs wife salary

      • So.. $50k a year? $75? (for 5 days a week?)
        I just hear a lot about 'just breaking even' so I'm wondering what that point is.

        • Different people do it for different reasons but neither my husband or I wanted to exit our careers, and our daughter is so outgoing and energetic that it works well for us. She wont be in daycare forever so the cost will drop. It's only temporary and when she's done we wont be struggling with reentering the workforce.

  • +1

    I live in Melbourne (1yr old):

    • My childcare is $100 per day (3034)
    • Across the road $115 per day (3012)
    • CBD $145 - 165 per day (3000)
    • Highpoint shopping centre $130 (3032)

    All costs include formula, nappies, food etc
    It was a happy co-incidence ended up being the cheapest, we tried 2 others that felt off ($115&130 per day) before we landed with our current one

  • $105 including nappies/food (2162)

    • If this was directed at me, how so?

    • what happens if you don't have parents? leave them in the wild?

    • Your post worries me, it reads like a ten year old wrote it. I'm hoping it's a troll otherwise I think daycare would be a far better place for your kids, can never start educating too early and yours are going to need it.

      • -2

        Go troll elsewhere

      • +1 to your post because the OP was a troll, but childcare shouldn't be conflated with education; if you can afford it financially and mentally, then raising your kids yourself will give them a better education than they'll get in childcare. My daughter is three and we'll probably put her in childcare for a little starting later this year, but mainly to give my wife a break and because we know she'll love it by now, not because it's in any way going to help her get ahead in terms of educational attainment.

        • I'm not conflating the two, we've used three different daycares and all of them have had an education program. They have curricula and set goals with us. And frankly the goal isn't to 'get ahead', it's just incorrect to say that they don't educate because they do, and I'm tired of childcare workers being given a bad rap. They don't just wipe bums and noses and keep them all from killing each other.

        • @MissG: I haven't done well at explaining myself; I'm certainly not accusing childcare workers of doing nothing but wiping bums and noses. They do educate, it's just that the education they provide is meaningless in terms of eventual educational attainment. You can educate young children and they'll be more educated than their peers at that point in time, however their uneducated peers will rapidly catch up once they all go to formal education, so it's ultimately pointless from an educational standpoint. If the kids enjoy it then all well and good, if they don't you're pointlessly inflicting suffering on them - you might as well let kids be kids and play. Childcare workers do a hard job for crap pay and it's not one that I'd want to do, however some of what they do is pointless.

          Ultimately childcare at a very young age is at best simply depriving yourself and your child of time together (and is likely more traumatic for them than that) for an enormous amount of money. If it can be avoided it should be, but there are good reasons that it might be unavoidable (both parents needing to work, for immediate money or to maintain a career, seem like obviously compelling reasons). I think it's sad that things are set up to support parents so poorly that this childcare is such a need here.

        • @ely: I don't agree that childcare at that age is depriving yourself and the child because it depends on the parent and the child. Some people love being stay at home parents where it's just them and the child 100% of the time, but for others that's not true at all. My daughter is ridiculously social and freaking loves it, and I would go crazy being at home with just her and I all of the time. On our days together she gets the best of me and I of her, because of childcare. Without it I think I'd just be a mess of trying to meet the competing demands of making sure she gets quality time and looking after the house. In short I'd be a grumpy parent and kids don't need that. I am an avid believer in it takes a village to raise a child - and sadly in Western society that village has been eroded, we don't have multiple grandparents, anda aunts and uncles and cousins to do that work and childcare to some extent has taken it's place. And because of childcare, my daughter has carers who she loves and friends who she has playdates with outside of care days, which means she's developing relationships which will carry her through life, and be set up in parallel to those she makes at school which is so important because relationships are everything.

          My response to Pnutbutter was a little bit tongue in cheek, but I don't think he gets a +1 for suggesting that people who use daycare are treating their children like animals.

        • +1

          @MissG: My +1 was to you, not Pnutbutter (check the votes) :)

          I don't think we're so far apart here; I would definitely categorise "need a break so that I can be better in the time that we do spend together" as a reason to put your kid in childcare. It's not good, but it's better than the alternative in that case - it's what I would have done if my wife wasn't so patient, I couldn't be a full time primary caregiver, I'd be the grumpy parent you describe. We're expats with no family here at all, so there's no village support at all :-/

          I don't know how old your daughter is, so we may or may not be in disagreement here, but I'm sceptical that any kids whose age is still counted in months rather than years (i.e. up until about two years when people stop saying 24 months) should be in childcare at all and in limited doses thereafter, more as they get older. Relationships are important but at that age it's really only the relationship between the child and parents that matters, the others will come later.

          My concern is that people actually think of childcare at a young age as a good thing, in and of itself, and so be more willing to consider it than they should be (and that the whole early childhood education schtick as part of that deceptive marketing). It's a sometimes necessary evil and should be recognised as a last resort than a first one.

    • Your ability to spell “worrys” me

  • +2

    I wonder if there are certain ways that are safe in practice to get around. I was just thinking of 5 single parents. One day a week a parent would look after the 5 children. Of course though to be on the safe side each parent would need a WWVP (working with vulnerable people card) or similar. Maybe an app/forum/facebook page to organise it?? There seems to be a huge need. There must be a way around big day care expenses.

    • +2

      Or like an Uber app but for childcare

      • And then we start trialling robot educators… cause the self driving cars are working so fantas… oh, wait. Never mind.

      • or uber childcare. they can just sit in the back and be entertained by all the passengers!

  • +1

    That's insane, it would actually be cheaper to just hire a full-time nanny! I've never even made that much money let alone having enough spare to pay just on childcare, looks like stay at home dad is going to be a future point on my resume…

  • +2

    Wow. Serious thought, how the hell do single mums survive?

    • +6

      Single parents you mean? Agree, would probably be very tough…

    • +1

      They get forced on welfare and de-incentivised to work for reasons like this, then people like Corey Bernardi rip into them for 'taking handouts'.

      • +8

        Single parent here… pretty much. Not worth it, can't afford it, been out of the workforce a long time, going to have trouble finding skilled work (work that pays high per hour), and I have a STEM degree…

        And yeah, I'm just a lazy bludger apparently… I didn't ask for my ex to become a controlling lunatic once I had that baby in me.

    • depends if they work or not/how low income they are…. There's daycares near me that advertize 5$ care for those on healthcare card etc. I am assuming that is after a bunch of rebates. I know my sister in law who is unemployed with a bunch of children manages to send some of her kids to childcare and it costs her next to nothing.

      • and I think this is one of the things the LNP is cracking down on with the changes that are coming into effect in July.

    • If you're a low income family, all the rebates etc they get I believe they would only be out of pocket about 15% of the actual cost.

  • I pay $88 for my 3 (soon to be 4 year old) per day in Brisbane and it includes food - but the portions must be small because he comes home and eats like a horse. It's our last kid to go through the daycare system, finally!

    Times get tough when the CCR runs out….so for the last year I managed to get him going for 4 days a week, hopefully we can last on the CCR through to July, but that's probably wishful.

    Oh and the fees keep increasing, but the offerings don't seem to. Usually they go up about $5-7 per year and probably the owner is lapping it up (see him coming to the centre in his fancy car all the time).

  • Sorry to hijack your thread, but we are in the process of looking for one and will visit ones soon. But have put on the tables of having partner just not return to work and be full time mother. Understandably yes the mother does get stale etc.

    But I keep wondering if it becomes a vicious cycle where child gets sick, often that is, comes home and infects parents, then parents get sick and the cycle goes again, is this counterproductive? Obviously being able to have a partner be a fulltime parent is a massive luxury in this day and age, but what's everyones thoughts?

    • +3

      Even if the majority of the time the mother stays home, it is important that kids go to childcare at least sometimes. Otherwise they will be really behind on social skills by the time they start school. Plus daycare centres have a lot more facilities for early learning and trained staff so they could be behind educationally as well. The ideal would be I guess to find part-time work that's fulfilling - but everybody wants that so probably hard to get.

      • I think my question stems from child care being a more "newer" trend in this generation. When I was brought up, my mum stayed at home. I just wonder what the implications were with my generation to this one, are the social skills gained very different? Also like I said even if it's part time, you fall into an issue or cycle with kids getting sick then parents getting sick and then kid gets sick again, never ending, just how productive and beneficial does that get?

        • There won't be a cycle like that because once you've been sick with an illness and recovered, you won't get sick with the same one again (or you wouldn't have been able to recover in the first place). The parents getting sick from the kids is a problem, but the only way to stop that is not letting the child get exposed, which means keeping them at home or only going to adult events, and then the kid will have stunted social development and lack of early learning opportunities, so probably not worth it.
          Edit: the article posted by bobkin says the biggest impacts on early learning are when the child is 3-4 years old. So it isn't so bad if they miss out before preschool, but - for the kid to have a good time at preschool he would need a little bit of social skills to get along with the other kids to fit in sooner - maybe if you prefer to stay home, the ideal would be to keep them at home until, say, 2, then put them in care once a week, then increase to 2 days a week, then when preschool age increase to 3-4 days and try to find a part time job? I don't know, it is all theoretical for me, my sisters' kids are only babies and I don't have any myself

    • +3

      A group in New Zealand called the Brainwave Trust did a literature review on the effects of childcare on health and development. It should help answer your questions. It can be found here: http://www.brainwave.org.nz/childcare-how-are-the-children-d…

      • Interesting, study says child care, if possible should be somewhat avoided until they are about 3-4. I doubt we would have full results comparing mature adults where a group of them were sent to childcare early on and one group not sent to child care.

    • +1

      Don’t apologise for hijacking.
      Yes, it will be a cycle of sickness, can’t go to childcare for a week, then healthy, going, picking up the next bug, etc…. it’ll be like that for a fe months. And with the end of summer, it’ll start soon. I can hear people in the train coughing already.

      You’ll get people saying “it’s hekpin their immune systems”, but I don’t know if that’s just to make you feel better. Good luck though, it could be a bad fe months.

      • Happened with my daughter’s immune system.

        When we started her at childcare at 1yo she would always get sick. Almost once every few weeks.
        The mother is also a clean freak which I thought did not help with the little one’s immune system.

        However when she hit 3yo she was pretty much bulletproof; I don’t remember her getting majorly sick at all. She is now 5.

        To answer original question - around $150 for 1-2yo in pc 2000, around $130 after moving her to the burbs (2033) at 2-3yo.

    • Try occasional care? My local has $50 for 5 hours, and that's before rebates.

      It can be a vicious cycle. Friend of mine with a poor immune system had to pull her kid out of child care because of this. After a while, the kid DOES get more resilient to infection, well most do.

      EDIT: Ok, apparently most occasional child cares aren't registered for rebates. Sigh. I need to move soon.

      • I'm in WA and I send my 1yo to an occasional daycare for permanent days and I definitely get a rebate….I can't actually remember how much the hourly rate is…maybe $12 an hr. You provide your own nappies and food but you only pay for the hours you use. If you drop them off later or pick them up earlier, it all gets adjusted. I sent my now 5yo there for 4yrs and even though we now live 30min away, I wouldn't send my 1yo anywhere else! Still all the same carers…so they must be doing something right there! So definitely check if the ones you are interested in offer the rebate or not.

        I actually feel so bad at how little the carers get paid for what they do…gave them a cash present as an Xmas present so everyone went out for a second Xmas dinner…☺️

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