The Single Income Family: Is It a Thing of the Past?
In today’s economy, many people wonder if the single income family is still an economically viable option. There are many factors to consider when choosing to have a spouse leave the workforce to raise children, including the economic, emotional, and social repercussions. . For some families, the economic and personal benefits of a parent at home may outweigh the benefits of employment, while for others it may not. Moreover, strategies can be implemented to enable the stay at home parent to generate some income, and in a manner that is not detrimental to long-term career goals.
As most people quickly realize, children come with substantial economic costs. While food, clothing, medical care and education all come in to play, the most significant expense of early childhood is childcare. Childcare costs are substantial, and become more so in families with more than one child. Some families manage childcare expenditures by working opposite shifts, but this is often emotionally difficult. Job sharing, family care, and part-time work are other options, but may not be feasible for many families. The high cost of childcare, along with the expenses associated with work, may make having a parent at home a viable economic option for some families.
Can a skilled worker make the sacrifices to leave a well paying job that they have worked hard to achieve in order to raise children? How much of an impact will that decision have on future career goals? Also consider the possible effects of reduced or nonexistent income on retirement savings, the stress of returning to work full-time and other factors that may be specific to your field.
Professionals in some fields may find working at home, or part-time is an option, allowing more active involvement in child rearing. For example, some primary caregivers may find part time work to be a viable option to continue career growth while providing care to their children. If your field does not allow for these options, or you simply would prefer to devote yourself to your children full-time, there are other ways to maintain your professional skills and identity. First, consider volunteer work and charitable contributions. Perhaps your professional skills can be put to use organizing community events in a way that you would enjoy and that will keep your resume fresh. Spending years at home with children can also offer the option of possibly stepping toward creating your own business
If having a parent at home with your children is a high priority, how can you financially achieve this goal? If your family is still in the planning stages, consider saving the expected stay at home parent’s income instead of spending it. This will help you become used to living on a single income and provide a buffer in case of emergencies. Think about debt, retirement savings, and other long-term financial goals. If you are not yet a homeowner consider how a single income will affect your ability to procure a home loan and also pay the mortgage. Live within your means before you are forced to. Big screen televisions, luxury cars, and dining out are not necessities. Learn how to budget and be responsible with spending.
Many families can live on a single income, particularly if this is a short-term decision. Think this decision through carefully, and prepare yourselves financially just as you would physically and emotionally before starting a family. It is much harder to contemplate keeping a parent at home with young children if you enter into family life with substantial credit card debt, poor spending habits, and a tendency toward excess.