Can you afford to be a stay-at-home parent?

Maintaining a career while being a mom has always been a huge part of my identity. Being the youngest of four, I just thought it was normal for my mom to be home with me.

Among couples in which both parents work, women provide about 70% of the childcare during working hours, and experts warn that the pandemic could have a very serious impact on working parents for years to come, especially working mothers.

Lined Circle

The situation has changed for stay-at-home parents, too. It’s one thing to stay home with the kids in normal times . . . and quite another when you can’t even go to play groups or parks. We’ve created a clear framework to provide financial clarity and help you be confident you’ve made the best choice for your family.

Lined Circle

Balancing the demands of working, parenting, relationships and life can be draining. In some cases, it might be less burdensome to focus on parenting or working rather than both; in other cases, you might find it isolating to quit a job that’s meaningful to you.

Start With What Matters to You…

List out all of your regular monthly household expenses :  - Housing – Utilities – Groceries – Eating out and entertainment – Clothes

Calculate your baseline spending

Note expenses that might be unique or different when you’re working as opposed to when you’re not.

Calculate work-specific expenses

Think about whether there would be any additional expenses if you didn’t work. For example, if your family is on your health insurance through your job, would costs go up if you quit?

Account for any extra stay-at-home expenses

If you and your partner would both consider being the stay-at-home parent, try totaling these two scenarios (working and non-working) for each of you.

Do the math for your partner, too

Total your monthly household income from all sources (remember to subtract taxes). How much does your family bring in when both you and your spouse are working?

Understand your current income

Approaching this decision in advance allows you time to not just save money, but also to take some time to dream about what your ideal life looks like.

Remember That Nothing’s Permanent

Having a financial plan and a savings cushion will help your family stay afloat regardless of what life brings.

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