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Can
You Afford to Stay Home?
Staying home with baby could be your most affordable option.
For many parents, whether to stay home with baby boils down to dollars
and cents: They're returning to the workplace because they think they
can't afford not to. But read on and find out how living on one income
might be easier than you think.
The Money You'll
Save
In every neighborhood,
across all socioeconomic groups, you'll find families who are living
on one income. Here are some examples of the money you'd save if you
had only one income.
Make more money
and you'll pay more taxes. Make less and keep more in your family's
pocket. For example: A two-income family makes $72,000 a year. They've
got $20,600 in deductions and expenses, making their tax bill for
that year $14,392. That means they actually take home only $57,608.
If one parent stops working, reducing the income to $42,000 with the
same deductions, their tax bill would be $3,210. They take home $38,790.
That means they only really take home $18,818 with the extra parent
working.
Child care is
not cheap. Depending on where you live and the type of child care
you choose (i.e., day-care center, at-home or live-in help) you're
talking an expense of $5,000-$15,000 a year--more than that if you've
got more than one child. Combined with the above tax bill, you're
going to have to bring in a substantial amount of money to make working
worth your while.
When it comes
to lunch, chances are that if you're working, you're spending $5-$10
each day getting something to eat. That's $1300-$2600 per year. Add
up the fancy coffees from Starbucks and tack on another $300-$400.
When you're working
at home as a mom, every day is casual day. This means saving money
on shoes, panty hose, dry-cleaning, and expensive suits. Estimated
savings per year: $3,600-$5,000.
Finding Hidden
Treasure
Once you've decided
to stay at home with your child, you have to figure out how to make
the most of your one income. Here are some tips to help you:
For one month, carry around a notebook and jot down all your daily
expenditures (no matter how small). After a month you'll begin to
see spending patterns.
Decide which
extra expenditures you can scale back or cut out altogether. Can you
eat out once or twice a month instead of once or twice a week? Why
not do your nails yourself instead of paying for a manicure?
Go through the
must-haves in your budget. Now that you're not making business calls,
do you still need that expensive cell phone plan? Cutting down the
minutes could mean lower monthly payments. Do you need all those channels
on your cable? Can you refinance your home? Switch to a lower interest
credit card? Drive an older car instead of that new SUV?
Tricks like these help you weed out the expenses that aren't really
that important. It may be easier than you think to go without.
Buying for Baby
New parents (especially
first-timers) often equate being good parents with having the latest
clothes and gadgets. But leave big purchases to the grandparents and
spare your bank account. If the fact that you don't have a particular
item is killing you, check around with friends and see if you can
get it secondhand. If hand-me-downs make you cringe, try borrowing
it for a week. If you are driven to buy it yourself after that time,
go for it.
Other Savings
As your child
grows, you can also save money by making your own baby food. Freeze
it in ice cube trays for up to two months. When your child has a craving
for strained peas or smashed carrots, pop a cube in the microwave
and go to town. Making your own baby food is also a great alternative
for children with allergies. You won't be feeding them additives and
preservatives and they're much less likely to have adverse reactions.
Real Considerations
If you've been
career-minded in the past, there is no question that choosing to stay
at home will be an adjustment. Until you become part of a community
of parents, there's a bit of culture shock. Obviously, if you're a
single parent, your options for staying home may be limited. In addition,
if you are a two-income family, you'll want to look at pension benefits,
401(k) and insurance policies, and determine who should be staying
home. Dads make great primary caregivers, too!
If you'd like
to keep your foot in the working world, talk to your company about
working part time or creating a freelance position for you. Or once
the dust has settled with the new baby, think about finding something
you have a passion for that you can do out of your home.
For some women,
taking time out from the workplace after their baby is born is the
right choice. If this is your choice, realize that you can achieve
your goal with some planning and sacrifice. It may take some time
to organize your stay-at-home plan, but you'll get there!
Your
should know:
The
information on this Web site is designed for educational purposes
only. It is not intended to be a substitute for informed medical
advice or care. You should not use this information to diagnose
or treat any health problems or illnesses without consulting your
pediatrician or family doctor. Please consult a doctor with any
questions or concerns you might have regarding your or your child's
condition.
Rebornne Baby. American Baby
