Financial expert perplexed by the whopping cost of childcare gets a reality check: 'He has no idea'

With the current state of the economy, it has become difficult to get by with a good income too. People require extravagant salaries to enjoy a luxury or even a lifestyle that’s beyond basic. For parents, it’s an even harder task to get by with kids’ tuition and other fees and expenses. Financial expert Dave Ramsey shared a mind-boggling video that left the expert himself baffled upon learning about the costs of childcare. The video has parents questioning his reaction as well as the rising prices of practically everything. Dave Ramsey and Jade Warshaw were together on the Dave Ramsey podcast when a caller who is also a dad of two kids revealed that he was having a hard time paying bills.

“I’m expecting my income to increase in two years but in the meantime, I’m having trouble paying, especially with two kids in daycare,” the dad revealed. The dad also mentioned that his wife was doing a medical residency and would get a job via the same in two years explaining the said raise in income. “How much debt will you guys have?” the financial expert asked after intently listening to the man. “We have a house and aside from that, we have a $25,000 student loan debt,” the man explained. On further inquiry, the man also mentioned that the student loan debt was solely his and his wife had no debts for education. Ramsey then asked the dad how much he and his wife were earning at the moment.

The expert and Warshaw were blown off their minds when the dad revealed that he earned $110,000 and his wife earned $70,000. “Can you explain to me why you can’t get by on 1,80,000 dollars?” Ramsey asked, quite doubtful. “Something’s not right,” Warshaw added. When the dad mentioned that much of the bills were being sent to the child’s daycare, Ramsey refused to believe the same. “You can’t tell me that you have $1,80,000 and say child care.” The man then revealed that he was paying a whopping $80,000 a year for child care. “Why? You bought them a college?” Ramsey asked, baffled by the numbers. The dad then revealed that it was $25,000 per child with the addition of early and late daycare and a nanny for summertime. “I’m going to be as nice as I can. You guys have lost your minds,” Ramsey said.

Warshaw tried to convince the dad that there’s got to be cheaper daycares which the couple should consider. “Are they going to Harvard?” Ramsey asked, still in disbelief. “You can downgrade,” Warshaw added. “I think you need to become frugal,” Ramsey concluded. Some parents were quite disturbed about the fact that Ramsey didn’t understand the rising costs in today's time. Many highlighted that the dad was spending too much on daycare, they also pointed out that childcare is not too easy to afford. @paradigmd804 said “I don’t understand why Dave doesn’t realize that daycare costs $20k plus a year per kid. Why doesn't he know about childcare costs?” @andreadiazr0y said, “Dave is so out of touch with reality.”