My wife works for a daycare. Our kids attend there, and we get a hefty discount. She was complaining that they don't pay her enough (they truly don't, lol) but I told her that she should consider the discount we get in thinking if the money is worth it, because if she goes somewhere else, we'll have to pay more. This is my calculation, am I missing something or is this correct? She likes her job, so it's not that she's unhappy with the work, just the pay.
Total daycare cost for the kids if we didn't get discount: $5195/month
Cost to us with discount: $1455/month
Savings: 5195-1455 = $3740/month
8 hours a day, about 22 work days in a month = 176 hours/month
Savings hourly: 3740/176 = $21.25/hr
But those savings are untaxed, so if she was getting paid that much extra she'd have to pay taxes. It would get taxed in the 24% bracket, so she'd have to make 21.25 / (1 - .24) = almost $28/hr more she would have to make at another job to make it worth it.
Do these calculations make sense or did I miss something?
Submitted June 30, 2021 at 10:57PM by vkapadia https://ift.tt/3dwpjGm
