Chasing after a screaming toddler may seem like a less than ideal way to spend your day, but imagine being paid a six-figure salary to cater to a two-year-old’s every whim.
Many of New York City’s most sought-after nannies can fetch a salary of about $180,000 per year, plus a bonus and an allowance, to pay for rent in an expensive apartment, according to The New York Times. That's because there are so few experienced nannies willing to forgo other plans to be available at all times to take care of New York's wealthiest children that they can command a high price.
If the economic recovery becomes more robust, the price of a good nanny may only go up. The booming economy of the late 1990s was a boon to nannies and other household workers, who could suddenly find themselves even richer clients, according to a 1998 NYT report. With extremely wealthy families promising potential nannies perks like a retirement plan and access to a BMW, well-to-do, but not super-rich households were often priced out.
Another factor complicating the nanny market: taxes. Many nannies in middle- and upper-middle class enclaves like Park Slope, Brooklyn are paid under the table so they can avoid taxes on their wages. This can make it difficult for parents insisting on operating above-board to compete salary-wise and still stick to their budget, according to CNBC.
And the number of families with the ability to pay great nannies top dollar -- on or off the table -- may only be growing. America added 200,000 millionaires last year, according to report from the Spectrum Group cited by the Wall Street Journal. Still, the number of millionaires is well below pre-crisis levels.
But America's super-wealthy may pale in comparison to their counterparts around the world when it comes to paying someone to take care of their kids. A British staffing agency said that one of their Russian clients used a $200,000 salary offer to poach a nanny from another family, according to an August report from the Times of London. That’s more than double London’s typical salary for a nanny of $75,000.