Can You Live on One Income? Child Care

by Mary Ann Romans | More from this Blogger

15 Apr 2008 05:12 PM

Many people decide to give up working for a living to stay home with the children. This may require you to live more frugally than you have in the past. But the difference a reduced income makes to your family may not have as large of a financial impact as you might think, especially if you do some careful planning. With one income may come less expenditure.

I have been examining how you can calculate the reduced expenses that may occur when one partner stays home. This, when compared to your income, should give you a good idea about whether or not you can live on one income.

Let's take a look at child care and other child-related costs.

Having one parent or partner at home with the children would obviously eliminate any cost needed for day care, nanny care or other daily child care costs. Along with day care, may come other costs that can be eliminated. A good example is the cost of diapers. Your day care may mandate disposable diapers and may require that they be changed every two hours, whether needed or not. At home, you may decide to use cloth diapers to reduce expenses or change the diapers only when they are soiled. Additional expenses, such as plastic bags to dispose of the diapers, bottled formula, commercial jarred baby food, convenience lunches and snacks or other requirements can also be expenses that might be eliminated or reduced with a parent at home. Bonuses and gifts for the providers would be eliminated as well.

For families with school aged children, having someone at home eliminates the necessary cost of before school care, after school care and full-time summer camp, as well as those convenience foods. Summer camp also usually comes with fees for materials and trips. A local summer camp charges $45 for a day trip to the aquarium, plus $10-$15 extra money for lunch. A parent and child taking the same trip together, can expect to pay about $30 for the two of them to visit, including a lunch brought from home and gas to get there.

Take a look at all of the expenses of child care, and ask your provider about any fees that are not covered in the weekly or monthly payment. Calculate those extra items mentioned above, such as disposable diapers (figure at least 29 cents per diaper).

Check back soon for an examination of one of the most significant reductions that may be available to families with one income: food expenses.

Mary Ann Romans writes about everything related to saving money in the Frugal Blog, technology in the Computing Blog, and creating a home in the Home Blog. You can read more of her articles by clicking here.

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Learn more about Mary Ann Romans

Mary Ann Romans is a freelance writer, wife and mother of three children. She lives in Pennsylvania with her husband, the kids and a 16-pound cat.

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