Having a baby can cause thousands of dollars for health care alone. As the child would reach the age which requires them to be sent to pre-school and child care facilities, parents should stock up on cash. Child care services are eating up the parents' salary as the service cost continually skyrockets.
According to ABC, working moms from Australia are now plagued as their salaries are being eaten up by taxes and child care alone. In a study mentioned the website, "full-time" working mothers" are left with very little salary as they majority of their salaries would go to taxes and child care services.
The study done by the Australian National University which was commissioned Goodstart Early Learning explained that there the mother's finances are greatly affected by child care expenses and taxes. The most affected among the groups are the mothers who are on low wages.
The statistics were based on the mother's daily income of $22.39 dollars. The researchers then gauged and made a few budget segregation. The computations revealed that a total of $13.83 would go to tax expenses and childcare costs and only $5.08 would be left for the family budget.
Ben Philips , the researcher behind the study elaborated the numbers mentioned. The Australian mentioned that the Daycare costs continually to increase making it hard for minimum waged mothers to cope with the expenses.
"We found for a low-income case where a woman was earning only around $43,000 per year, when you include her husband's wage you'll also find she's going backwards financially on the fifth day," he said. "What drives that is you've got say childcare costs of around $9 an hour or around say $90 a day, she's paying tax at around 32 cents in the dollar for around $43,000 a year, she's losing family payments. So she's actually losing money by turning up for work."
