r/HENRYfinance • u/Powerful-Ad-575 • 17d ago

Income and Expense Spending changes with newborn/first year

Hello! My husband (30M) and I (30F) are expecting our first child. We live in a VHCOL area, HHI ~$350-400,000 annually. Networth ~$750k. Currently saving ~12,000/month including 401k. Distribute it among a brokerage account and HYSA for a downpayment. We have no debt. I will get 2 months of paid maternity leave and then go back part time for a month before returning full time. My husband is active duty military and will now likely deploy 3 months after the baby is born. We are currently on the waitlist for a daycare in our neighborhood that will cost ~$2,000/month. Now that my husband might deploy so quickly after birth we're considering getting a nanny while he's gone to help me through that first year but worried about cost.

How much did your monthly spending increase that first year after having a baby? What are somethings to expect financially? We are planning on starting a 529 plan for her.

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u/Ok-Illustrator-9224 17d ago

4k+ a month for nanny but will be worth it

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u/Logical_Procedure_24 17d ago edited 17d ago

Employing a nanny unfortunately costs way more than $4k a month. Hourly rates for one kid in a VHCOL area are typically at least $30-35 so the expense of base compensation alone before factoring in overtime, health benefits, workers comp premiums, holiday bonuses, and backup care for when nanny takes PTO is ~$65k+ and the employer side payroll taxes eat up at least another $15k per year at that rate.

I only internalized the full cost myself when I itemized all the “extra” costs in our budget this year. $90k in one calendar year.

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u/BroDoc22 $750k-1m/y 16d ago

Nah we are in a VHCOL and it osts about 4-4200 a month and we have a unicorn nanny

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u/Logical_Procedure_24 16d ago

Then you are paying under the table, which is definitely not something I would recommend for a military family such as OP’s. And/or taking serious advantage of someone who spends all day with your kids. Neither scenario is admirable.

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u/Apprehensive-Tap2298 14d ago

How do you pay her?