If you’re considering staying home, think about the financial impact of your decision.

According to the federal government, a husband-wife family earning just under $60,000 before taxes will have $10,600 to $11,660 in extra expenses, depending on the age of their child.² In addition, daycare will add to the total.

Consider an example where a mother and father each earn $30,000 a year, for a combined income of $60,000. To maintain their ability to cover the larger family budget, they think they both of them should keep working.

But let’s run the numbers to be sure. A $30,000 annual income is $2,500 gross a month. From that, they spend about $250 a month in commuting costs. In addition, they spend an average of $125 per month on work clothes and another $120 per month on lunch, office gifts, and obligatory donations. Plus there’s day care of about $600 per month. In total, they will spend $1,100 per month in work-related expenses, about half of one spouse’s total income. They net $1,400.

But that’s before taxes. Since they each gross $2,500, they will pay about $1,000 in taxes. Therefore, their net after-tax, take-home pay will be about $400 a month. That’s less than $100 a week. If they work 40 hours a week and devote one hour daily for dressing and commuting, each parent’s hourly salary is about $1.75!

It gets worse. Not only are they netting way below the minimum wage, think about the emotional cost of being away from their child and the stress of juggling work obligations with child-care. Who will stay home when the baby is sick? Who will leave an important business meeting to race to the day care center before closing? Who will takes vacation time or sick leave to let the plumber in? Considering all the non-economic issues affecting this family, does it really make sense for both parents to work?

But don’t minimize the benefits of continuing to work.

Career

Staying home can damage a parent’s career future career prospects. Once you decide to return, you may have to take a lower paying job and then work your way back up. You may also be in a field that requires staying current with technology. To return, you may need to take—and pay for—refresher training. This is a vital consideration when determining whether or not to stay home.

Benefits Coverage

If the spouse considering staying home has the better or only health insurance, that may be a compelling reason for the other parent to remain at home. It can be expensive to obtain health insurance on the open market, and if an individual has a health condition, it can difficult to obtain insurance altogether.

Parents’ Mental Health

Some parents are not well suited to staying home. They need adult interaction. When making this decision, know yourself. Don’t stay home if you’re emotionally incapable of handling it.

Child Development

Also consider the needs of your child. In daycare, children learn social skills by being around other kids. Don’t dismiss the value of your child acquiring these skills.

So . . . should you work or stay home? Clearly, it's not an easy choice. But you do have a choice. In making it, weigh the financial and emotional factors carefully. Above all, have an open and honest discussion with your spouse or partner about what is best for everyone concerned, especially your child.

² Expenditures on Children by Families, 2006, U.S. Department of Agriculture, pg. ii

If you’re considering staying home, think about the financial impact of your decision.

According to the federal government, a husband-wife family earning just under $60,000 before taxes will have $10,600 to $11,660 in extra expenses, depending on the age of their child.² In addition, daycare will add to the total.

Consider an example where a mother and father each earn $30,000 a year, for a combined income of $60,000. To maintain their ability to cover the larger family budget, they think they both of them should keep working.

But let’s run the numbers to be sure. A $30,000 annual income is $2,500 gross a month. From that, they spend about $250 a month in commuting costs. In addition, they spend an average of $125 per month on work clothes and another $120 per month on lunch, office gifts, and obligatory donations. Plus there’s day care of about $600 per month. In total, they will spend $1,100 per month in work-related expenses, about half of one spouse’s total income. They net $1,400.

But that’s before taxes. Since they each gross $2,500, they will pay about $1,000 in taxes. Therefore, their net after-tax, take-home pay will be about $400 a month. That’s less than $100 a week. If they work 40 hours a week and devote one hour daily for dressing and commuting, each parent’s hourly salary is about $1.75!

It gets worse. Not only are they netting way below the minimum wage, think about the emotional cost of being away from their child and the stress of juggling work obligations with child-care. Who will stay home when the baby is sick? Who will leave an important business meeting to race to the day care center before closing? Who will takes vacation time or sick leave to let the plumber in? Considering all the non-economic issues affecting this family, does it really make sense for both parents to work?

But don’t minimize the benefits of continuing to work.

Career

Staying home can damage a parent’s career future career prospects. Once you decide to return, you may have to take a lower paying job and then work your way back up. You may also be in a field that requires staying current with technology. To return, you may need to take—and pay for—refresher training. This is a vital consideration when determining whether or not to stay home.

Benefits Coverage

If the spouse considering staying home has the better or only health insurance, that may be a compelling reason for the other parent to remain at home. It can be expensive to obtain health insurance on the open market, and if an individual has a health condition, it can difficult to obtain insurance altogether.

Parents’ Mental Health

Some parents are not well suited to staying home. They need adult interaction. When making this decision, know yourself. Don’t stay home if you’re emotionally incapable of handling it.

Child Development

Also consider the needs of your child. In daycare, children learn social skills by being around other kids. Don’t dismiss the value of your child acquiring these skills.

So . . . should you work or stay home? Clearly, it's not an easy choice. But you do have a choice. In making it, weigh the financial and emotional factors carefully. Above all, have an open and honest discussion with your spouse or partner about what is best for everyone concerned, especially your child.

² Expenditures on Children by Families, 2006, U.S. Department of Agriculture, pg. ii