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I'm right there with all of you struggling to figure out childcare. I went through the same thing with DS too. My mom is only 54 and is nowhere near retirement, so she works full time and was not an option for childcare. DH's mom passed away 12 years ago and his father lives in Mexico. With DS, we ended up first using a neighbor across the street who stayed home with her DS4. It was very convenient, but she flaked on us and we had to switch when DS was 6 months. One of DH's co-workers (a woman I also used to work with) had a baby 1.5 months before DS and was trying to start up a home daycare, so we brought him to her house. It was nice because her son is so close to DS's age, but it was far from our house, luckily on the way to DH's work, though.
Once we moved to AZ, my cousin's MIL started watching DS. She is 72 now! She is in great shape though, walks 5+ miles every day BEFORE she even comes to my house. She worked in a daycare for 30 years, and did in-home child care ever since, ending her last job for twin boys when they started kindergarden right before we moved, so it was good timing for us. Plus she comes to our house to watch DS, so that is really convenient. And she only watches DS 3 days a week. DH is off on Thursdays, and my mom works full time still, but 4-10s, so she is off on Fridays and watches DS then.
But I do sometimes worry about the sitter's health at her age. I know that her daughter calls her every day to check in, so I think that if she ever didn't answer, she would probably come over to check things out. Plus DH's work is only 1 mile away, so he could be home so fast. Now that DS is 3, I think it's time to start teaching him to dial 911. We don't have a home phone right now and I don't really want one because DS loves playing with phones and we don't need it for any other reason. But it might be easier if there were an emergency than for DS to try to find the sitter's cell phone. I'm really not sure what to do.
When DD arrives, we will probably keep the same plan, as long as the sitter feels like she can handle both kids. I work from home 2 days a week, which I also did with DS, so I will try to keep DD with me those days most of the day, until it starts getting to difficult, which for DS was about when he turned 1. By the time DD turns 1, DS should be in pre-school, so that should make things a little easier.