My husband and I are thinking that I should quit my job and stay at home with our kids. How do I know if I can afford this?
January 08, 2014
With child care costs so expensive, it may make more financial sense for you or your spouse to stay at home with the children. I have a number of clients whose daycare costs them more than their mortgage every month. However, before you decide to quit, sit down with your spouse, weigh the pros and cons and crunch the numbers. If one spouse stays at home, what will that do not only to your cash flow in the short term but to your retirement plan? If both spouses work, how will that affect your liabilities (your regular debts, like house payments or rent, utility bills, etc) and your monthly budget? What about health-care coverage and other company benefits? Does one spouse have better and/or less expensive health benefits than the other? Answering these questions will help you decide whether you can afford it, and who should stay home.