How a Mom Can Stay at Home Without the Family Going Into Debt

Many young couples today develop a lifestyle that is based upon two incomes. Even with dual sources of revenue, it is not at all uncommon for budgets to become strained. When (and if) the couple decides to have children they often find themselves at a crossroad. Is the woman going to leave the work force and become a stay at home Mom? This question can really be broken down into two major parts. The issue of whether a woman should stay at home is a very controversial topic that we are not going to address. Our purpose is to consider the second issue, which is determining if it's fiscally possible for a woman to stay at home with her children, without the family going into debt.

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The answer to this question is not a simple yes or no. In the vast majority of cases it really boils down to what type of lifestyle a couple would like to maintain. If the decision is made to keep all of the current expenses (plus a few more which will certainly arise after the birth of a child) then it really becomes impossible for the woman to leave the work world. However, if the couple decides that they are willing to make some alterations to their lifestyle it can be done

• There is no work related expenses. This is a factor that often gets overlooked. Once you peel away expenses such as gas, lunches, work related clothing, dry cleaning, coffee, child care, etc., the net amount you are bringing home may be substantially lessened. In addition, a second income often bumps a couple into a higher tax bracket which further lessons their net gain.

• Separate necessities from luxuries. You need food, but eating out is a luxury. You need transportation, but a BMW is a luxury. I'm sure you get the idea. Figure out how much money you will have each month to live on and then begin to cut out these luxuries. Going to a single income but refusing to give up expensive luxuries is a quick way to go into debt.

• Downsize. If pairing out the luxuries did not balance your budget then you may want to consider moving to more affordable housing. This is generally the largest expense within a budget and by moving to a smaller location or to a different geographic area you can generally save a good amount of money.

In the vast majority of cases a couple can make the transition to a single income if they feel it is worth the sacrifices. However, if circumstances simply prevent this from being a feasible option then couples may want to consider some other alternatives.

Other Alternatives

• Find a part time job. This may provide the needed boost in income while allowing the mom to spend part of her days at home.
• Work with your child. Find a position where you can be with your child. Examples of such jobs are day care workers and home based businesses.

Work alternating shifts. If the Dad works some night shifts and the Mom works some day shifts (or vice versa) then someone will be with the child all through the day. You may not want to follow this pattern on a full time basis because it leaves very little time for the couple together.

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About the author:

Mark Carney is a professional consultant with First American Debt Consolidation and Loans, a debt consolidation service specializing in financial education, credit counseling, and debt management services nationwide.