Looking at Being a Stay-at-Home Parent? Four Financial Factors

One of the most common questions that every new parent faces is, “Should one of us stay home and care for our child(ren)?

” It may not be with the first child, but as your children multiply, life becomes more expensive.

According to Motherly’s 2023 State of Motherhood report, 25% of survey respondents referred to themselves as stay-at-home parents, compared to 15% in 2022, which shows this question is becoming more seriously discussed in families, especially as childcare costs are rising at nearly twice the rate of inflation. Before making any major decisions, it’s important to focus on all of the financial considerations.

There are positives and negatives to both options, and ultimately it is a deeply emotional and personal choice to make, but it’s a healthy exercise to weigh all the financial pros and cons of one individual staying at home with your child(ren).

Here are a few of the big ones to consider:

Income

The most common reason I hear for people deciding to stay at home is childcare costs. As a mom of two boys, I completely understand this decision, because childcare costs are sky-high. While the cost may vary based on the age, location and level of care needed for your child, the average annual costs for U.S. childcare range from $5,000 to $17,000. If you hire a nanny, it’s even more than that. So whether you choose a nanny or a daycare facility, it’s all super expensive.