Monday, February 06, 2006

The calculus of parenting

I once postulated that the idea arrangement for parenting in our economic environment was four parents. The best way to describe this arrangement is to use Full Time Adult units, similar to the FTE (Full Time Employee) unit used in business.

2.5 FTA's would be involved in wage-earning
1.5 FTA's would be involved in child-care

Part of the reason the age-of-parenthood is getting later and later is due to the economic burdens of parenting. With more wage-earners in the mix, it becomes possible to start earlier and not suffer the economic penalties a 'mere' 2-earner household would have. I've gone over Culture's particularities on the topic of when to start a family here.

The above arrangement has several built in advantages. Since child-care is being taken care of 'in house' there is no need to pay for day-care. Since a lot of families face the problem of one parent not being able to earn enough to pay for daycare and thus get the defacto head-child-raiser title, this is a big issue. 2.5 earners and no day-care costs mean that a larger family can be supported, and college-savings can occur.

The 1.5 FTAs involved in child-care have advantages as well. Since one parent isn't the sole provider, burn-out becomes less of an issue. The .5 FTA allows relief to be given to the full-timer (presuming one parent does get to be a full-time child-care person), which will save sanity. Child-care is hard work!

Full-time day-care costs are near levels people pay for mortgages. It used to be at parity, but housing prices have risen to the point where they've left child-care behind. Still, it is not unknown to pay $950/month for day-care. With the housing bubble and steady increases in property-taxes, mortgage payments well into the four-figures are increasingly common. By not having to go the day-care route, a theoretical family of four adults would be able to make significant gains.

But our culture does not sanction such households, unless two of the four adults in the household are directly related to one of the other two (i.e. grandparents, aunt/uncle, or othersuch). 'Parenting collectives' are even more rare than such extended households. This is a conflict that needs to be resolved.

Congress just got done reducing student aid for higher education. College tuition keeps increasing at twice the rate of inflation. More and more, a 4 year degree is a requirement for decently paying jobs. The economics of parenting are grim if the child is to do well.

"It takes a village," is just as true as it always was. Even more than ever, actually.

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