One of the biggest considerations for anyone who decides to be a stay at home parent is whether your family can cope with the choice financially. It is the very first thing you should consider – before you even look into the emotional and other aspects of the decision. Here’s how you make an informed choice.
Work out your expenses
Every family has expenses, ranging from fixed costs like rent or a home loan to variable costs like groceries, holidays and more. The very first step in deciding whether you can afford to be a stay-at-home parent is to calculate what your family’s monthly expenses are. (Remember to keep costs related to your work separate, as you will save those if you decide to be a stay-at-home parent.) You may also want to highlight areas where you can save money – if you keep a family finance diary for a few months, you may be surprised at how many non essentials are costing you money.
Next, deduct all your expenses, other than those related to your job, from your partner’s salary. This should give you a good idea of whether you can afford to live on one salary. If you can’t make it, consider the areas where you have noted that you can cut back. Will making those changes make it possible to live on that single salary?
If you still find that you just can’t afford to be a full time stay-at-home parent, consider other options. Can you reduce your working hours or take a half day job? Is there any way you could work from home, or is there a small business you can start at home to make up the difference? There’s usually a way to get around financial troubles that are keeping you from being a stay-at-home parent if you are creative about it.
