The decision to quit working and become a stay-at-home parent often boils down to finances. If you’ve decided you’re personally ready to stay home with your children, the question becomes “Can we afford it?”
Deciding if you can live without your paycheck is more complicated than simply removing your salary from the family budget.
Start with your net take-home pay and start subtracting things you won’t be spending on if you’re at home. Consider the following:
The cost of working
- Do you eat lunch out most days? Do you routinely grab a coffee and pastry at the café next to your office? These are part of the cost of working and they’ll disappear if you choose to stay home. They may seem like pocket change, but they add up.
- Tally up what you’re spending on work uniforms or professional clothing and shoes.
- Consider the cost of your commute – parking, gasoline, tolls or the cost of public transportation.
- Now consider what you’re spending on child care – day care, babysitting, summer day camps and after-school care.
The hidden costs of working
There are things that you won’t have to pay for if you’re willing to do them yourself.
- What are you spending to send shirts to the cleaner?
- What do you spend on convenience foods because you don’t have time to cook from scratch?
- If you’re paying someone to clean your house and maintain your lawn, can you do that yourself?
Taxes
- Will your spouse pay less in taxes because you’re all living on one income?
- Are there incentives for single-income families?
Luxuries
They may seem like necessities, but you can live without expensive entertainment.
- Figure out what you’re currently spending on dinners out or take-out food and put a limit on it.
- What are you spending on vacations and travel? Are there cheaper ways to take family trips?
- Scale down Christmas and other celebrations to more back-to-basics values.
- Add up what you’re currently spending on clothes and take a good look at what you’re buying. Can you forgo designer labels and become a discount shopper?
- Go through a typical day. What are you using or spending money on that can be scaled down? Do you have your heart set on a weekly trip to the gourmet cheese and bread shop? If you can live with store brand, you'll save money.
Coupons, buying in bulk and waiting for sales
You sometimes hear about the housewife who got $300 worth of groceries for only pennies and some coupons. Don’t expect those kinds of results, but you will save money by vowing to not pay full price for much of anything.
- Try switching to a discount grocery store and see how much you save. Jot down the prices of things you buy every week and compare them to what you’re currently paying.
If you can save a mere $20 a week on groceries, that totals more than $1,000 a year.
Non-financial considerations
You can’t put a price tag on it, but give some weight to the benefits stay-at-home parenting will bring to you and your children.
- For you - the peace of mind when your child gets sick (no more scrambling to get time off work – again), no more fighting crowds to grocery shop during peak hours, cooking dinner at a decent time.
- For your children – no more crack-of-dawn trips to daycare, a more relaxed evening routine, more time spent at home with a parent.
These things don’t hold a monetary value, but should be considered and given the weight you think they deserve in your life.
For more on Stay-at-Home parenting tips, see:
