The crazy cost of daycare | Squawkfox

Posted by Ravi Gulati | Posted in Financial Planning, News of Interest | Posted on 23-10-2013

Moving to Toronto made daycare so much more fun to afford since my daily rate is now set at $70 for a coveted spot. No more flat rate cheques for me — I now need an algorithmic approach to see the monthly budgetary damage. This is the math that makes working parents cry.

Toronto Childcare Cost:

Number of Weekdays X $70 = Total Monthly Daycare Cost

Monthly Cost: ~$1,517

Annual Cost: ~$18,200

Most months I pay around $1,517 for simple licensed childcare in Toronto — there’s nothing posh about this place, but it’s safe and clean and I like the staff. That’s around $18,200 per year, or all the after-tax money you thought you earned by working full time.

In 2012 the maximum child care income tax deduction was $7,000, and deemed “out of touch with reality” by Tammy Schirle, an Associate Professor of Economics at Wilfrid Laurier University……..

The monthly $100 Universal Child Care Benefit (UCCB) is adorable, really. I’m not shunning the C-Note — I’ve been known to stoop for smaller denominations — but if the UCCB is truly “designed to help Canadian families, as they try to balance work and family life, by supporting their child care choices through direct financial support” then it probably should aim to cover more than 1.4 days of daycare each month. Sorry, my math is too generous. The UCCB is taxable, you have to report it on your income taxes, so after tax it covers almost a single day of daycare in Toronto. Very helpful, thanks government guys.

The crazy cost of daycare | Squawkfox. – http://tinyurl.com/ozbfdro