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Can I Afford to Stay Home with my Child?
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| Having one parent stay home to raise the kids is a dream of many
families. Unfortunately for some, a dream is what it stays, as the
reality of living on one income seems impossible. While it might not be
the right choice for everyone, having one parent at home with the kids
could be something that works for your family. |
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| If staying home with your kids is something you aspire to, but
aren’t sure if you can afford, read on. |
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Do the math
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| First, sit down and take a look at the numbers. Write down all the
expenses you incur over a month (mortgage or rent, car payments, home
insurance and property tax, contribution to savings, all bills, food,
clothing etc). It might be helpful to track your spending for a month
or two before you start this exercise, in order to see where your money
is really going.(This will allow you to more accurately pinpoint areas
where you can cut back if you decide to live on one income). |
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| Next, it is important to look at “the cost of work”. The costs
directly associated with working combined with the opportunity cost of
working will result in your “cost of work”. The factors contributing to
this cost will differ, but there are some common ones to consider.
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Transportation cost. This can range from the cost of taking
public transit to the office everyday, to gas, maintenance,
insurance, and even the sticker price of your vehicle (or second
vehicle). Could your family survive on one car, or even without a
car, if one parent didn’t work? |
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Food. If meals purchased while out at work are common for
you, or take-out and restaurants are relied upon to feed your
busy family with two parents working, your reduced food costs
could be considerable. Having one parent at home could mean there
is time to prepare meals more economically at home. |
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Wardrobe. The clothes you need for work will likely be
different from what you can wear at home. Business wear, and its
maintenance (dry-cleaning and tailoring), can really add up.
Depending on your line of work, not worrying about your wardrobe
could result in some real savings. |
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Childcare. This is the big one. Childcare costs range wildly
from region to region, and depending on what type of care you
use. Daycare costs in British Columbia, for example, average $705
a month for an infant, while that number is around $500 in
Saskatchewan, Quebec, and New Brunswick. Small, home-run daycares
tend to be less expensive. Do your research to discover the cost
of the type of childcare you would require in your region. |
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| Total your “cost of work” for an average month, and subtract it
from your monthly expenses. This is the number you need to compare
against the salary your family plans to on. Will you (or your
partner’s) salary easily cover, or fall far short, of your monthly
expenses with one parent at home? If so, your decision will be a simple
yes or no. |
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If it doesn’t add up… don’t give up
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| But what if your single salary almost covers your expenses, but not
quite? Or if there is quite a large discrepancy between salary and
expenses, but you are determined to make it work, and ready to make
some serious sacrifices and get creative? In that case, staying home
with your child could still be possible. |
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| First, look at those expenses you tracked for a month or two, down
to the penny. Where can you cut back? Can you stop your magazine
subscriptions, cancel your gym membership, and cut down on your cable
package? Make camping your yearly vacation rather than going south for
a week? Downsize your vehicle, or even your home? Many families have
reported downsizing their home and moving to a smaller place or less
expensive area is one of the ways they finally made staying home with
their kids possible. These are things you might want to consider. |
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| Lastly, working from home, in some capacity, is another option. Be
creative with this one, and start your research well ahead of time. If
you can, start your home-based business before you make the jump to
staying at home, to gain experience and see if it is a viable option.
If having one parent at home with your children is a priority for your
family, don’t give up! |
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| There are many resources to help you make the decision to stay home
with your child or continue working. Here are a few: |
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| You Can Afford to Stay Home With Your Kids: A Step-By-Step Guide
For Converting Your Family from Two Incomes to One. By Malia McCawley
Wyckoff and Mary Snyder |
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| ˝ Price Living: Secrets to Living Well on One Income. By Ellie
Kay |
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