Lee Common School PTA

Help with the Cost of Childcare

The latest issue of The Motley Fool reports that the Daycare Trust has released its 2008 Childcare Costs Survey, and it makes for worrying reading...yet again, the costs of sending a child to day care has risen at a rate far exceeding the rate of inflation.

...while on the one hand the government is trying to persuade parents to combine working with bringing up a family, it hasn't created a great number of ways to help.

The Daycare Trust has called upon the government to extend the offer of free early years places to two-year-olds and increase the number of hours per week to 20, as well as to subsidise after-school activities for 11-14 year olds from lower income families, eventually making them free.

In the meantime, The Motley Fool's report rounds up of some of the help available now.

Tax Credits
For a family income below £58,175 per year (£66,350 if you have a child under one) you may be able to claim Child Tax Credits or Working Tax Credits.

Free Part-Time Early Years Places
This scheme is available to all three and four-year-olds and gives up to 12.5 hours (increasing to 15 hours in 2010) of childcare for free, for 38 weeks of the year.

Childcare Vouchers Scheme
An Employer's scheme which allows parents to sacrifice some of their gross salary in return for "vouchers" that can be used to pay for childcare. The first £55 each week (£243 each month) can be bought free of tax or national Insurance, meaning a lower rate taxpayer could save around £962 per year, and a higher rate taxpayer around £1,195.

You can also go to the DirectGov Childcare website to investigate the help and entitlements available.

Online Payment Processing

For the longest time there has been a poll sitting on the site asking if people would prefer to pay online for tickets to LCSA events, for the Christmas cards, the traditional gifts made by the children, donations and all the other fund-raising activities the LCSA engages in.

Well, Now you can.

The LCSA can now take credit and debit cards and paypal funds for everything. In advance. With no running round to chase up. And all with stock control (you can't sell what you haven't got).

Goodness, at what cost!? I hear those of you who have a merchant account yourselves saying...

1. The cart software - no charge.
2. Google Checkout - no commission, no standing charge, no transaction charge until 2008.
3. PayPal - reduced costs with paypal (charitable status), 1.4% + 20p (that's per transaction).

So, try it out. Buy your LCSA Christmas Cards online.

The High Price Of Parenthood

"...as we know, there are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns — the ones we don't know we don't know."

Donald Rumsfeld

And there are things we don't know that we wish we did, and there are also things we do know that we wish we didn't...

The High Price Of Parenthood is one of those you know, but you don't really know, and when you do really know, you really wish you didn't...er, know.

From the Motley Fool. Again.
Sorry.

Cut the cost of childcare

Childcare costs in the UK are the highest in Europe, and with the average full time cost of a nursery place in the UK costing £141 a week, and those in London and the South East costing far more that that, every penny counts.

For another in our links to child relevant finance articles have a look at Cut The Cost Of Childcare! - 30/10/2006 - The Motley Fool UK.

This report follows the investigation of a mother into how parents can save on their childcare costs and highlights the Government's childcare voucher scheme as one of the most tax efficient.

This scheme requires administration by employers or third parties acting for the employer, and if the vouchers are not active in your workplace it offers advice on how you might promote the scheme.

The article provides the reader with figures to help structure the argument for a scheme beneficial to the employer and their employees; who knows, it may help overcome the inertia in your own smaller yet-wanting-to-care firm. Read on.

Tips From The Junior Market

between the ages of one to eleven parents can expect to spend some £92,000 or 56% of the total estimated cost of raising a child.

We recently posted an article regarding financial planning options and long term savings growth strategies for children highlighted by the Motley Fool.

Nice to know what your options are.

Now you can read a little about where they think your options should be.

Tips From The Junior Market - 17/10/2006 - The Motley Fool UK

So, if we got the £92,000 up front...

Make your child wealthy

Occasionally articles pop up that spill a little light into dark corners, like this one from the Motley Fool, an independent financial advice site.

I've no affiliation with them other than subscription to their email newsletter; I like the conversational style that makes for better understanding.

If you would like to check them out first go to the Mission page.

Link: Make Your Child Wealthy - 5/10/2006 - The Motley Fool UK

Their reviewer writes:

My daughter turned three this week, so I've been giving some thought to her future needs and finances, as well of those of her big brother.