I’m a project manager on 50k a year. I’m spending a significant amount of my wage on childcare – any tips for cutting down these costs?

Welcome to Money Matters: GLAMOUR’s weekly dive into the world of finance. We’re chatting all things personal finance, from contracting rights in the workplace to expert mortgage advice and saving for your first home, to ISAs and dealing with debt, to help empower you to make better choices. Now more than ever it’s important to understand our money, but so many of us feel as if we don’t have a handle on it – or worse, feel anxious and scared about money. 

So each week, a woman in a unique situation will give us an honest breakdown of her finances, and our expert will tell her easy tips on exactly how to tackle it. So, take a seat, and let’s talk about money…

Ella* is a 33-year-old project manager currently living in West Hampstead. She earns 50k a year and is a single parent to two boys. She is currently spending a significant portion of her wage on childcare. 

She’s expected to attend the office two or three days a week, and even when she’s working from home, she needs someone else to keep an eye on the children so she can properly concentrate on work. Her ex-partner currently pays child support, but it doesn’t feel like it’s making much of an impact. 

She’d like some financial advice about how to make smart decisions to save money on childcare, as well as how she can start saving money to buy a house

Here, she shares her money diary…

MY ACCOUNTS

Current account: £3,000
Savings account: £4,500

MY INCOMINGS

Annual salary pre-tax: £50,000
Annual salary post-tax: £37,198
Monthly wage pre-tax: £4,166.66
Monthly wage post-tax: £3,099.83
Other incoming payments: £4,000

MY OUTGOINGS

Rent/mortgage: £1,599
Bills: £400
Splurges: £2,100
Other: £800
Any student loan/credit cards/overdrafts etc: I’m still paying off my student loan, which comes directly from my salary.

MY MONEY THOUGHTS

My worst money habit: Late-night splurges on Net-A-Porter.
My biggest money worry: Not being able to afford a house.
My financial hopes for the future: Buying a one bedroom house for my children and me.
Current money mood: ????????????

Expensive childcare 

Childcare costs in the UK are eye-wateringly high, and with two kids, it can be a real stretch. You’ll need to look at your options locally but assuming you don’t have help from friends and family, have you considered a registered childminder or a live-in au pair? These are typically much more affordable than a day nursery or a nanny. An au-pair, on average, costs around £70 – £85 a week (this is known as ‘pocket money’, plus room and board), whilst a registered childminder costs around £118.3 a week per child. Of course, both are likely to be higher in London but make sure you’re making the most of the government support you’re entitled to as well – see this calculator.

Child support