How to make the ‘stay-at-home’ v. daycare decision

We like to complicate things. Especially when it involves family or money. Where those two meet is one messy junction. This is very apparent during the “should I be a stay-at-home parent?” conversation. If you have, or are about to have kids, you’ve had this conversation. It’s not a 5 minute conversation.

The good news is the decision, from a financial standpoint, is actually quite simple. Let’s say the parent in question makes $2,000 a month and daycare is $1,000 a month. You either need to cut expenses to make room for the extra $1,000 spent each month on daycare or you need to cut expenses enough so you don’t need the $2,000 a month in income. That’s it. That’s the crux of the stay-at-home debate from a financial perspective.

Whichever option you end up choosing, is going to cost you. But just know, it’s okay if you run in place financially for the next few years. Kids are expensive and regardless of which option you choose, your financial life changes when kids come into the picture. Just set a time frame, don’t let running in place become your new normal. It just a temporary spot.

You may wonder where you are going to get the money to save for college during this expensive period of life. The answer is diapers. And formula. And baby food. And daycare. You’ve already lived without this money, so as your kid ages out of diapers instead of absorbing the money back into your budget, put it in a college fund.

For more tips and tricks watch my segment from the Fox 59 Morning Show below.

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