Living on One Income
If you or your spouse plans to care for your child, you'll have to decide which one is best equipped to do this. Nowhere is it written that women are better at caring for their children full time than men are, so if the child's father is willing and able to leave his job to care for the baby, that may well be your best option.
Many people decide who will stay home solely on finances: The person with the best-paying job keeps working, while the other stays home. Don't forget, however, to factor in medical insurance (if both have it, whose is cheaper and better?) and the commute. WORKSHEET 16-3 below can help you work through the numbers.
Whenever possible, don't base this decision entirely on finances. One parent may simply be better suited to or more interested in providing child care and will, therefore, be better at it. Factor this into your equation, too.
Income |
Working |
Staying Home |
Take-home pay |
$ |
$ |
Lost retirement contribution |
$ |
$ |
Total Income: |
$ |
$ |
Expense |
Working |
Staying Home |
Outside child-care costs |
$ |
$ |
Increased medical-insurance costs |
$ |
$ |
Decrease in car expenses |
$ |
$ |
Decrease in lunches out |
$ |
$ |
Decrease in dry-cleaning |
$ |
$ |
Increase in heating and electricity |
$ |
$ |
Total Expenses: |
$ |
$ |
