Question about earnings as a childminder

[nannymcphee]

Hello!

I have a job as a nanny for a family, but my long term plan is to do childminding from home starting from September 2008 when my eldest son starts school full time.


This question relates to a question on money really, we are looking into buying a larger house which will mean I need to make X amount per month so we can comfortably live and pay the very high mortgage.

So I wondered without sounding nosy (asking this as I am trying to work out if we will be able to afford a £1000 per month mortgage) could I raise such an amount of money after tax so we could comfortably live?

In other words are you as a childminder able to make a similar amount or maybe more?

I have my baby who will be 1 by the time I start childminding so could have another two children under 5 whilst eldest is at school.

Any help here would be great,

Thanks again for your advice.

[raggydolls]

£1000 per month mortgage, jeeeez i hope u have a mansion for that price

[sarsar3nch]

Looking at it logically:

2 children full time (say £30 per day) = £300 per week - max

£1200 per month

14400 per year less (say) 7000 expenses = 7400 taxable pay

after pers allowance you would pay 10% tax on £2180 (i.e. £218 for year)

So even after accounting for NI contributions you would have 1000 left

BUT of that £7000 expenses some will be your normal household bills but much of it is actual money spent on childminding (read up on £10 rule) so you may need some before/after school work to be confident of that level of earnings but yes it can be done.

What you have to be mindful of is the vulnerable nature of our work, numbers of mindees can go down as well as up!!

Hope that helps, sorry about the waffle

Maybe others will be brave enough to elaborate on my feeble explanation of expenses


Sarah

[fionamal]

Hi there,

I have 2 fulltime kids, my own 2 kids and 4 parttime kids. Got 5 kids at the most at anyone time.

After Tax, food etc I make approx £850 per month. Some months are less with hols and sickness .

It is hard work though having that many kids but depends as well on how committed you are and how much you need to earn.

[helen1980]

This would also depend on where you are in the country as average hourly rates vary from place to place.

[sarahnev707]

I think Sarah's working out is great.... it's certainly not something you could guarantee every month!! You're wanting to clear £12k a year, which tbh I'm nowhere near after expenses... plus....

I find it hard to get money out of parents when their children are sick, however clear I make it when signing contracts - 'I'm not paying you for doing nothing when I've had to take the day off work...' etc

You have to budget for your potential sickness

You have to take some holiday... which is usually non-chargeable

There is a tendency for children to come and go...and parents' work is unpredictable... so you can't guarantee being full all the time

Expenses take up a good proportion of your income (tax office expect us to lose about 2/3) - buying for themes, food (biggie!), extra on the household bills, insurance etc all take a chunk

Sarahx

[nannymcphee]

Thanks everyone for your replies, the house is an average 3 bed detached £180K, can you believe it costs this amount of money to buy a house!

I'm not saying I expect to make £12K to cover the cost of it, but I'd need some significant amount to ensure we have a decent standard of living.

Of course we have hubbies income which is good and I also am a hairdresser so if need be I can go into that as an additional income as I do have some regulars every so often.

I'm not in this for the money but do need some as we all do to cover household bills etc.

Thanks again it's good inspiration talking to other cm's xx

[banana]

Hi there.

welcome to the fourm.

To be honest if you are looking for a job which is going to garauntee your income..... this is not it. But it does have the potential to earn you a good wage. The more children you have the more money you make - as said above though this varys and you cant depend on children staying for long periods, some childminders have a very high turnover of children others have long standing contracts.

If you needed to make sure you cleared £1000 a month after tax and expenses then I wouldnt suggest childminding as a route to that.

Good luck with whatever you decide

x

[susan]

nannymcphee said:

Thanks everyone for your replies, the house is an average 3 bed detached £180K, can you believe it costs this amount of money to buy a house!

where in the country do you live ?

[lisaurry]

Hi there,

I think another important point is to look into your area first. I've noticed some childminders struggle to get mindees, whereas my area are screaming out for them - I have at least 2 new enquiries per week.

I mind 8 children altogether, and I earn a very good wage - so if you were in this area, yes there would be no problem earning £1000+, however, if you're in an area where there are alot of childminders, it may be more difficult to fill spaces.

Research your area, and see what you come up with. Find out what the local childminders charge and work out how many children you would need to earn what you need - baring in mind your expenditures for the year.

Good luck!
Lisa x

[squiby]

I live on London/Essex border and I earn what i consider to be very good money with no childcare costs. I only have 2 p/t kids but I earn well over £1000 a month and our mortgage is £1300 pcm so I need to aswell!!

I also have paid holiday for me in my contracts, which is not a problem with either set of parents. I think how much you earn and whether you can get stuff like this in your contracts is dependant on normal CM practice in your area. Where I live the norm is 4 weeks full pay for CM, so parents pay it, simple really.

Also I charge in advance so if they dont come as they are sick they cant short change me, not that they would. The only refunds I have to make are when I am ill, so not a lot really!

I am more comfortable now financially than working a well paid job in the city once childcare and travel have been accounted for! Go figure!

[gailee]

hi i'm struggling work very slack round here?? coventry? surestart nursery round the corner!! the school my kids and 2 of my p/t mindes go to are offering breakfast club and now starting evening clubs so there most of my business gone!! i'm losing a another child in Feb (mum on maternity leave so won't be back till 9 months after baby is born so i'm back down to 2 children after school !

[jo]

Some very good advice!
I think it is a risky job as far as relying on a regular (long term) income, you may land on your feet and fill your places. It has took me three months after getting my registration to get a part timer, I'm glad to say enquiries have picked up now.
I wish you all the best, you'll love it!

[linda]

Hi
My advice is pretty much the same as everyone else dependswhat area you are in i get a couple of enquiries each week i have a waiting list for september when 5 of my children move on to go to school.
I mind with an assistant and our wage is as secure as childminding can be though as the others say you dont know what will happen from one minute to the next
Lindaxx

[buildingblocks]

lisaurry said:

whereas my area are screaming out for them - I have at least 2 new enquiries per week.x

okay thats it I am moving to Staffordshire as i am struggling at the moment

love Kate

[lisaurry]

Where are you from Kate?

I'm in Tamworth (Staffordshire), and on the north side of town we are very few in numbers, but on the other side of town there are lots. I wish we had more around here - because there is a big need.

Hope it picks up for you.
Lisa x