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In that situation if it were me, I wouldn't work truthfully. There's no way I could justify paying to work.

@JoJoGirl: I think that's probably the bottom line. How much more would it cost you to pay for healthcare benefits out of pocket? How long will you have 2 in daycare? Is your DH willing/able to look for another job with better benefits?

It seems like a tough situation!

I'm not in this situation, so it might depend on the benefits you are receiving through your work. Are you putting money towards a 401k? How much would health insurance cost to buy outright? How hard would it be for you to find a job in the future if you decided to stay at home for now? Can you afford the extra $200/paycheck to continue working? It's only for ~18 months...

@JoJoGirl: My profession doesn't take kindly to lengthy absences, no matter how worthwhile the reason(s). Imo, the long-term benefits of working significantly outweigh a (relatively) short-term financial break even situation. And then you add in your benefits, which are (imo) reason enough to keep working. There are other factors for me as well (although we aren't in this situation, I still want to contribute financially, have an identity outside of my family, intellectual stimulation, etc.). And I don't even particularly like what I do!

Would you be willing to send both LOs to a cheaper in home center? What about a nanny? That might be more cost effective since you have Fridays off (or am I thinking of someone else?) I would think with a nanny, you might be able to structure it in such a way that you're only paying for 4 days per week. Maybe you could even structure your and DH's schedules so that you only need a nanny 7 hours per day instead of 9?

I'm also newly pregnant with #2 and crunching the numbers is also giving me heartburn!

@JoJoGirl: I love the people with whom I work. If I didn't, I would not have returned (to my profession) after I had LO.

I also think it's important to remember that this is what the picture looks like today. Even 6 months from now could look very different.

@JoJoGirl: Have you looked at if you would qualify for any assistance on the healthcare premiums if you were no longer working? I'm not advocating leaving your job (I would be more prone to temporarily decrease my 401(k) contribution so I was at least breaking even - I always tell clients to hit the first person running at you), but I was just throwing that out there. We pay for private insurance (long story) and it's about $900 for our family of three.

I'm in a similar situation. My salary will cover daycare for two, but barely. However, adding in the cost of the benefits provided by my company (health insurance and a generous 401k match), I come out ahead. I keep focusing on that bigger number whenever I feel bad that I won't be taking home much in salary.

@JoJoGirl: Ugh, $8K IS a lot, but keep in mind that you'd have to pay outright for your health insurance if you quit. Would that be more or less than $8K? And how much money would you forfeit from 401k? Figure out how much you're putting in and take a guess at how much you'll earn in 20 months. Also, what are the chances that you'll get a raise in the next 20 months? What are the chances that you'll find a job AFTER these 20 months and get paid at least what you are making now?

@JoJoGirl: Health benefits are HUGE, plus you're contributing a lot to your 401k. I'd definitely keep your job, since you're looking at less than two years of both LOs in daycare, and scale back your 401k contributions if you need to.

@JoJoGirl: Yes, it's hard to put a price on emotional wellbeing! If you guys can swing it, I would try not to focus on the idea that you're paying to work, but rather that it's only for a short time, and you're doing something valuable for your mental health and your future. In the short-term it might sound crazy, but I think it's important to take a more long-term view of things. Working can definitely have a lot of value beyond the immediate, tangible money factor. Plus, I think others have mentioned additional important considerations, like what the cost of health care would be if you weren't working. That's a major factor.

I'd keep working and either just suck it up and pay out of savings for this season, or cut back on your 401k if you really need to. I think in your situation the benefits are worth it. Low premium and no deductible!!!

@JoJoGirl: I'm in the same boat, and although it was a tough decision for me, I feel like I made the right decision. Daycare in my town is crazy expensive (like $2000-$2300 for 1 infant) and having a nanny is also expensive $2500/1 kid...$3000 and up for 2 kids.

I'm a public school teacher, so obviously I can't afford paying north of $4000 a month in childcare. We don't have any family nearby at all, so there are no financial shortcuts for us. I've done a few things to cut childcare costs (my older daughter commutes with me 2 hours a day to a daycare closer to my work in the far-out suburbs because it's cheaper than in my town), but we hired a nanny for the baby because I needed it for my mental health. Right now, we are totally paying for me to work (well, I clear a little, but after factoring in commuting costs and work clothes and the occasional eating out I do, plus things I buy for daycare, it's pretty much a wash).

But like you, the entire family is on my (really great) health insurance. We compared the plans my husband can get through his job to the plans I get as a state employee and there's just no comparison. I had 2 babies in 2 years and paid exactly $20 for all of that. I've had ER visits that cost me $30.

On top of that, I'm paying into my pension and this is my tenure year as a teacher. If I quit and stay home, I start back over at the bottom of the pay scale and at the beginning of the (4 year long) tenure process.

So I consider it to be a temporary thing for a longer-term benefit. =)

I have the health insurance for our family, too so that would be all the justification I need. Mental health is important and remembering daycare struggles are temporary. But it could be hard to return to work with a gap. Not to mention lost potential raises and promotions in that time.

I am about to start a new job, and with childcare we will barely break even. We will not get any benefits at all other than it will be a significant improvement for my mental health (I hope!). I would look at it as if you are paying that $200 so that you have insurance (which for a family of 4 would probably be far more expensive in the open market!)

One thing you can look into is whether or not at the end of the year you are getting a tax refund. if so, you should adjust your withholdings so that you get more money in your pocket each month. And use a dependent care FSA to offset some of the cost of daycare. Those two things are helping us out just a little. It's enough that we can make it work.

@hummusgirl: Yes! Thank you! I was actually going to write something similar. I actually make more than DH. Thankfully he literally got a huge raise this week. However, previously, if we were to compare daycare costs for 2 against his salary after factoring in all of the costs of working (train, parking, etc.), we probably would have come out even. But him not working was never entertained as an option for several reasons.

Exactly what hummusgirl said. The question is how will you not working affect your family's overall financial health. It's not about what your income is or isn't comparable to that cost. If you can take a few years of 2 in daycare and still maintain some semblance of financial stability, and you like your job and career trajectory (and you like working), then I think it's worth it.