Choosing to have one parent stay at home is a deeply personal decision—but it’s also a major financial one. Whether you’re evaluating this option for the first time or revisiting the idea after a big life change, it’s important to look at the full picture: money, long-term planning, and what matters most to your family.
Here’s how to break it down.
Assessing the Financial Impact
The first step is comparing the loss of income to the cost of childcare. In many cases, the numbers may surprise you—especially if childcare expenses are significant.
From there, take a realistic look at your household budget. What adjustments would need to happen to make a single income work? Can you still meet your core financial goals?
Planning Ahead
Before making the leap, aim to build a financial cushion. This could mean:
Strengthening your emergency fund
Saving a few months of additional expenses to ease the transition
Accounting for changes in health insurance, especially if the stay-at-home parent was the one providing coverage
Even a short-term buffer can help you navigate the adjustment with less stress.
Long-Term Considerations
It’s easy to focus on the short term—but don’t lose sight of long-term planning. Consider how to:
Continue retirement contributions for the stay-at-home parent, such as through a spousal IRA
Stay active professionally through skill-building, certifications, or freelance work, which can smooth the path back into the workforce down the line
Taking time away from a career doesn’t have to mean putting your long-term security on hold.
Maximizing Non-Financial Benefits
While there may be a financial trade-off, staying home comes with non-monetary value that can’t be measured in dollars—like being present for milestones, simplifying schedules, or reducing stress in the home.
Some stay-at-home parents also find time for side gigs, creative projects, or small-scale businesses that contribute both financially and personally.
How to Have the Financial Discussion
This kind of decision should never be made solo. Set aside time for honest, judgment-free conversations with your partner. Talk about:
Shared priorities and concerns
What sacrifices each person is comfortable making
Setting joint financial goals and checking in on them regularly
The key is alignment—not just on the money, but on the lifestyle you’re creating together.
Want to Go Deeper on Family and Finance?
Tune into the CAPitalize Your Finances podcast, where we break down life’s biggest financial decisions—from career pivots to early retirement, and yes, staying home with your kids.
🎧 Available now on Spotify, Apple Podcasts, and YouTube.