Agreed. Where we live, a nanny is the cheapest form of childcare. Most people prefer to have their child in a licensed childcare facility.
We had live out nannies when the kids were young even when our salaries were fairly low. Our work schedules and demands were such that most daycares weren’t practical. It was more expensive with one child but once we had 2, it wasn’t. Plus, our kids got sick (and therefore we as well) less often. It really made things so much easier and manageable - worth every penny.
I just started listening to The Millionaire Next Door, and the author claims that 80% of millionaires are first generation wealth.
“Where we live, a nanny is the cheapest form of childcare. Most people prefer to have their child in a licensed childcare facility.”
Wow. I am shocked by that. Here no one wants to use a childcare facility because they just can’t deal with the “no later than 6 pm pick up”. Most like me have jobs in the city and cannot leave before 5 pm as you’d need to do to make that viable. Those that do, do so because they can’t afford a nanny which is expensive here. They are always juggling a parent leaving work early or are lucky enough to have one work close. Even then I don’t get the appeal.
Myself besides not being able to make it home soon enough couldn’t stomach the pick up at night on any sort of regular basis, bundle everyone into coats, hats and boots, drive home, unbundle and organize the coats jays and boots, start dinner thing that day care required. I nearly lost my mind the few times I used day care (out firm provides access to emergency care which I used when the nanny was sick or on vacation and left work a little early) The place was lovely and the kids were happy but I so much prefer coming home to kids who had bathed and were ready for dinner ( already in the oven via the nanny) so,that we could all sit down peacefully, enjoy each other’s company and read stories and get into bed. We used au pairs as Nannies (all were teachers in training from the program we used )and they were all wonderful
Note the book’s title – The Millionaire Next Door. Having $1M net worth is not even top 10%. This thread title mentions “top 1%.” How persons typically reach $1M net worth is quite different from how persons typically became "top 1%. That said, the book did find that 36% had an advanced degree above bachelor’s. I wouldn’t call 36% “seldom.”
Another shout out for nannies because I was one in college.
The people I worked for were probably top 5% on their way to top 1%. I LOVED their children, and the money, for me, was great for doing a job I really enjoyed. My employers got the benefit of having their children cared for in their own homes, one-on-one attention for their children, and great flexibility for their schedules.
I also worked one summer in a day care center (now known as “pre-schools”). I would pick using a nanny hands down if I had the money.
I wouldn’t either.
Out of curiosity… anyone else here stay home to watch their own kids before K? 
I’m sure that wouldn’t have happened if the Navy hadn’t incorrectly diagnosed me with asthma, but after the AF kicked me out due to that diagnosis, it’s what happened. H and I decided to have kids instead and I didn’t go back to work during the day (part time) until youngest was 3. At that point H had started his own business so the young lad followed papa around when I was at work. Supposedly H’s clients loved him (the lad - well, H too - enough to not be concerned with a young lad around some days).
Other than some short term assignments at school (semester or a few months/weeks covering maternity or military leave) I’ve never been full time since. I have a standing offer at school for full time and the students always ask why I’m not, but I tell them I got too addicted to working/traveling on our own schedule. One of the months we like to be elsewhere is Feb and school admin tends to frown upon teachers taking the whole month off to be in the Bahamas or similar.
I guess I got spoiled and rather lazy - only “working” for fun when I feel like it. I often wonder what life would have been like if I’d been able to stay career AF as intended. I enjoy our life now, so no real big deal, but I still wonder.
Around here and where we were at the time (St Pete, FL) it wasn’t at all an anomaly to stay home with young kids until they went to school, then get a job. None of the kids in our play group had a nanny though a few went to preschool for 2- 3 days per week once reaching age 3 or 4. There were plenty of folks earning well above what we were making in income (household income) and one or two lower.
$1 million of savings and investments is probably far below the financial “needs” of the people who complain about scraping by on $480k per year income, even though it is a lot compared to the median household income in the US (around $59k).
Imagine if someone with $480k per year income had Millionaire Next Door spending and saving habits. Barring extremely bad luck, s/he would probably end up with many millions of dollars of savings and investments after a few decades.
Honestly, for me its burning curiosity. I live in a NY subburb with a fine school system. Its not one of the super wealthy communities that people have heard of, but it has all the trappings: good schools, safe streets, easy commute to NY city. I don’t make anything near 300k. I keep trying to imagine a world in which my salary increased to that amount and I didn’t feel rich. I’m not talking about a one time bonus or inheritance.
Please understand, I’m not saying this to cast judgment. I’m not suggesting that other people are doing something wrong. I would just love to understand it. Where does the money go? How is there not a substantial amount free to go to savings every month.
I did stop out of the workforce for about a decade after our 1st child was 4.5 months old. When I returned, it was on a part-time, flexible hours basis and has been great. We never had daycare because I was the caregiver.
The flexibility I had with my jobs allowed H to accept the varying conditions at his job, including extensive travel at times. We did tag along on quite a few of his work trips domestically as well. It worked out great.
I had the luxury to choose to be at home with our children. However, we aren’t one percenters.
otoh… We never aspired to one percent status.
Adding: we are rich, and I feel rich.
Even in San Francisco, $300,000 income leaves $156,650 after income and payroll taxes and rent (reply #216). Seems puzzling to me how people have trouble making ends meet or saving/investing substantial amounts of money on that.
We earned less than 300k while the kids were growing up but we were savers and saved our way to the top 5 percent in assets. Then as I’ve written here my miser/never married aunt died and the unexpected inheritance boosted us to the top approximately 1.5 percent.
But we know lots of people who made 500k who have little in savings. What do they spend their money on? Cars. New Lexus and Mercedes every 2-3 years. Vacations 10-20k twice a year. Clothes. Not unusual to spend 50k a year just on clothes and more in jewelry for the mom alone. Overnight camp 20k for 2 kids for the summer. And of course mortgage and upkeep on a million dollar house. Cleaning service lawn service etc…
Sort of stayed home?
H worked mornings, home by about 3 pm, and I worked evenings, started work at 4 pm.
We worked opposite shifts for YEARS, and never had to hire a nanny or pay for daycare.
It took a toll on us, that’s for sure, but it’s how we were able to maximize our household income with two very ordinary working class jobs, while keeping expenses down.
Oh we definitely aren’t 1%ers either. We’re not even 10%ers for our state. I still feel rich. Perhaps it’s because we have that luxury to travel the way we like to, etc, that so many I’m around don’t have. We can do that because we’re not tied down to jobs where we must be on site. I wouldn’t trade that for more money.
I’m sure some in the play group my kids were in would have been in the Top 10% at the time at least - or maybe they just had the “toys” to look that way. I guess I really dunno what their finances were. I know we still keep in touch with a couple of them even after all these years and our moving away and they’re definitely Top something.
“The Millionaire Next Door” was written in 1996. When there weren’t quite so many millionaires as there are today.
While the numbers of how much you make to be at the top may have changed, the personality attributes haven’t changed. I believe the research and findings still hold true today.
Here are the seven factors from the book for wealth:
- They live below their means. Far below their means.
- They actively put energy and time into acquiring wealth in an efficient manner.
- Financial independence is more important than displaying social status.
- Their parents didn’t help them through the tough spots.
- Their kids provide for themselves (my H would say “they’re off the payroll”)
- They are proficient in targeting market opportunities.
- They chose the right occupation.
@Midwest67 I worked nights at a grocery store after we moved from FL to PA. This was for about a year before any of the lads started school. It was pretty brutal staying awake afterward to be a mom. I can see why it took a toll on you doing it for years!
For us, it helped us save for a house (our farm) and gave me a little bit of an outside life helping my sanity. In spite of actually doing it, I’m not really the type to have been a SAHM. My kids survived, but sometimes I make a joke about their four siblings who didn’t. (Sick joke if not read with the correct tone of voice - 100% joke - I never actually killed or seriously maimed any young kids, but there’s a reason I work in high school and not any of the younger grades.)
You answered your own question. Who wouldn’t want the kids washed, cleaned, and ready for (the already prepared) dinner when they get home from work? Does anybody think people (usually the mom) enjoy having to leave work earlier than their co-workers to pick up the children, rush home, and make dinner? Do you think they like having to leave work to pick up a sick kid? There is no appeal. Most families just don’t have the money to pay for their own nanny.
@austinmshauri My question was Why did @alwaysamom say that “Where we live, a nanny is the cheapest form of childcare. Most people prefer to have their child in a licensed childcare facility”
In other words what’s the appeal of day care if a nanny is cheaper. I did NOT answer my own question on that. You point even more reasons why this makes little sense to me.
For us here a nanny was cheaper if you had 2 kids close in age and thus were paying for full day care for two. If they were several years apart so that you really onky had one at a time in full day care and the other in free kindergarten by the time you sent back to work day care was cheaper.