Baby Balance Sheet: A Family of 3 Living in Wausau, Wisconsin, on $100,000

Childcare is often a family’s single biggest expense after their mortgage or rent. And while it can be most expensive in cities (San Francisco and New York City have some of the highest childcare prices in the country), families living in small towns and rural areas face a different challenge: childcare deserts.

This edition of Baby Balance Sheet features a family of three based in Wausau, Wisconsin, a town in the middle of the state—the closest nearby city (Green Bay) is more than two hours away. Finding a local, licensed daycare was a nearly three-year-long journey that involved a seemingly endless waitlist and a little bit of nepotism. They only recently got their nearly three-year-old child into a nearby daycare, and they spend 13 percent of their pre-tax income on tuition, nearly double what the Department of Health and Human Services considers to be affordable. 

Still, despite the stress and the expense, the family is glad to have their child in a daycare program where she’s thriving. Read on to see how this family of three spends and saves their annual $100,000 combined income. 

About me: I work from home full-time as an outpatient imaging scheduler for our local health system, and my husband is a police officer. We have been married for almost six years, together for 10 years. Aside from our almost three-year-old child, we also have a cat.

Age of parents: I’m 29, and my husband is 31.

How old is your child?

Almost three

Where do you live?

Wausau, Wisconsin

What is your family’s household income?

$100,000

Did you have a savings goal before your baby arrived or are you working toward one now?

We have a weekly spending budget of $250, which is used for food (groceries and eating out) and non-essentials (activities, new clothes/toys, etc.) By having this weekly budget, we’ve been staying more disciplined in our spending habits.

What kinds of financial tools (or tricks!) are you using to help reach your savings goals?

My husband and I have been working with a financial advisor for the last five years. We have learned ways to save for long-term and short-term goals. We also have both life insurance policies to serve as a financial safety net in the event of one of our deaths. 

Are you setting up any savings accounts for your baby—like a 529, custodial account or something else? If yes, what kind of account(s) are you using?

Yes, our child has a 529 account that grandparents and other family and friends have the ability to make gift account contributions. 

If you’re setting up a savings account for your baby, are you hoping friends or family might contribute to it too?

Yes, that is the hope at least. We deposit a recurring amount each month and also open it up to family and friends as an alternative option for birthday and holiday gifts.

When it comes to money, what part of having a baby (or raising a kid) feels most stressful?

Childcare costs are honestly the most stressful. Yeah diapers are expensive too, but it’s extremely difficult to find a comfortable balance between affordability and quality of care.

I started looking for daycare when I was pregnant, and the local licensed daycare told me it would be a three-year wait to get in the infant room. Obviously by that point, our baby wouldn’t be an infant anymore!

We got desperate as I got near the end of my maternity leave, and we ended up finding an unlicensed—but very nice—in-home daycare through a local Facebook group. It worked out well for a temporary solution. My husband’s cousin has a licensed in-home daycare, and we were able to jump the line to get a spot. We felt lucky, but also we had to make a 34-mile roundtrip drive to the daycare four days a week.

We did that for nearly three years (it was a lot!), but I recently reached out to the original daycare, since our child is getting close to turning three. We lucked out, and they finally had an opening this summer. It’s more expensive, but it’s a much shorter drive. And we really see the benefits of having our child in a daycare with a dedicated 2s classroom.

Are you receiving (or will you receive) any family help for paying for baby expenses?

Yes, our family and friends contributed items at my baby shower, including a stroller, changing table, and crib. We paid for our medical expenses by ourselves (after insurance).

Can you share how much you spent on your child in the last month?

Childcare: $270 a week (or almost $1,100 a month)

Food: About $500

Diapers: $16. We are currently doing daytime potty training, so this cost is gradually going away for us. (Yay!)

Wipes: About $5. We only buy wipes for everyday use (wiping hands and mouth, cleaning up a small mess, etc.) since we are not changing diapers anymore. 

Clothes: Maybe $20, if that. I am proud to admit that 90% of my child’s clothes and shoes are secondhand. Babies grow so fast, and toddlers too, so this is an area to easily save money. Secondhand chic, first-rate savings!

529 College Savings Plan: $100

Birth-to-3 program: $25

How much do you discuss the cost of raising a baby with your partner? 

I would say that we discuss this on a monthly basis. We only have one child currently, but the social pressures of having a second child have been weighing on us lately. Honestly, when I think about the financial, mental, emotional, and physical stress that is caused from raising a baby, I am content with our current family size.