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The Upside of Being a One-Income Family
Today it seems like one-income families are becoming harder to find. Living on one income may seem impossible in this day of high interest rates and a rising cost of living. However, for some of those one-income families it makes absolute sense and is cost-effective as well for one parent to stay at home and tend to the home and family.
Many couples find that they have jobs where flexibility is not an issue. For example, one parent may work as a teacher and the other as a nurse. During the day, the one is able to be home for the children while the other can “tag team” with them and cover the evening shift of parenting. However, for parents that have the same work schedule, having one of them stay home may just be a better choice.
Here are some of the benefits of being a one-income family:
Many couples find that they have jobs where flexibility is not an issue. For example, one parent may work as a teacher and the other as a nurse. During the day, the one is able to be home for the children while the other can “tag team” with them and cover the evening shift of parenting. However, for parents that have the same work schedule, having one of them stay home may just be a better choice.
Here are some of the benefits of being a one-income family:
- Doing a compare and contrast is essential when deciding whether or not to have one parent home with the children. Begin by investigating the most important and most expensive consideration – childcare. Even with rebates childcare can take a huge chunk out of a pay packet. Having one parent stay at home to look after the children negates that expense.
- Does the cost of childcare closely equal the salary of the parent who would be willing and able to stay home with the children? If the cost of childcare outweighs the financial benefit of being a two-income family, then the couple needs to thoroughly explore this option. Consider how many hours you need to work to cover the cost of childcare, be it long daycare, before or after school care, family daycare or casual childcare.
- Next, what other additional expenses need to be factored into the equation? The cost of coffee in the morning, lunch in the afternoon and picking up fast food on the way home for dinner (since neither parent is home to cook) may add up to more than a two-income family bargained for.
- The cost of transportation also needs to be explored. Would it be more cost-effective to save the transportation costs, prepare home cooked meals on a budget, shop wisely, conserve energy and tighten the budget belt rather than bear the expense of wear and tear on a vehicle, petrol for that vehicle, insurances, maintenance or for public transport?
- Another question that comes to mind is that of sick care for your children. Some companies only give a limited amount of sick time for parents that are paid days off. If your child develops the flu, those sick days can be used up very quickly. As children are not allowed to attend daycare when they are ill (and shouldn't be at school spreading their germs), parents need to look at their company’s policy as well as the amount of flexibility and paid time off they can utilize. If you have a child who seems to contract everything and takes quite a bit of time to recover, you may want to rethink working outside the home until the child builds up his or her immune system.
- Purchasing and maintaining a wardrobe is something that may sound trivial but can add up quite quickly. Not only do you need appropriate attire for work, but also there can be the added expense of dry-cleaning involved as well as accessories such as shoes, jewelry, haircuts and even a laptop case.
Separately and individually, these items may not add up to much, but taken into account in their entirety, they can really add up.
Calculate the individual costs of all these expenses and any others you incur through working (ironing? cleaning? gardening? school bus?), then add them up. Work out how many hours you are working just to pay for these things so you can work. Chances are you will be working a lot of hours before you start to actually make a profit, if you really make any money at all. Many families find that having two full-time working parents actually ends up costing them more than they are bringing in, hence the "We are both working but we just seem to get further and further behind" statement made by many two income households.
Having one parent at home takes away the cost of childcare, that is obvious. But there are other less obvious benefits, both financial and emotional. Choosing to look at parenting and homemaking as a job brings these benefits to the forefront. For example grocery shopping becomes a way to save the family money and by working at homemaking there is the time to meal plan, cook from scratch and shop for the best prices.
Petra and Dave are the perfect example of a one-income family. They have three school age children and when their youngest daughter started school Petra seriously considered returning to work. By the time she worked out the additional costs to the family Spending Plan she knew her family would be far better of financially if she stayed at home. Petra estimates she saves around $17,000 a year by being a stay-at-home mum.
By being a stay-at-home mum Petra can shop around for groceries, shopping the sales at the supermarkets and going to the market once a fortnight for fruit and vegetables. She also religiously checks out her local op shops and buy-swap-sell groups and factory outlets for the family's clothing and any household items they need. She is home to look after the kids during the holidays and can take advantage of special offers for movie tickets because she is available. She cooks from scratch and grows a veggie garden, again because she has the time.
Petra regards staying at home as her job and says that if she didn't do the things she does then they wouldn't be able to survive on Dave's wage alone and she would be in a full time job, working 35 hours plus 8 hours travelling time for around $135, which is what she calculates would be left from her wage by the time she paid for all the extras.
Being a single income family may not work for you. Staying at home to run the house and family isn't for everyone. Both parents may have jobs they love or they may just prefer working in a paid job to working at home and be prepared to wear the costs by building them into their Spending Plan.
Couples need to tally up the score and may just find out that there really is more of an upside to a one-income family than anyone could have ever imagined.
Calculate the individual costs of all these expenses and any others you incur through working (ironing? cleaning? gardening? school bus?), then add them up. Work out how many hours you are working just to pay for these things so you can work. Chances are you will be working a lot of hours before you start to actually make a profit, if you really make any money at all. Many families find that having two full-time working parents actually ends up costing them more than they are bringing in, hence the "We are both working but we just seem to get further and further behind" statement made by many two income households.
Having one parent at home takes away the cost of childcare, that is obvious. But there are other less obvious benefits, both financial and emotional. Choosing to look at parenting and homemaking as a job brings these benefits to the forefront. For example grocery shopping becomes a way to save the family money and by working at homemaking there is the time to meal plan, cook from scratch and shop for the best prices.
Petra and Dave are the perfect example of a one-income family. They have three school age children and when their youngest daughter started school Petra seriously considered returning to work. By the time she worked out the additional costs to the family Spending Plan she knew her family would be far better of financially if she stayed at home. Petra estimates she saves around $17,000 a year by being a stay-at-home mum.
By being a stay-at-home mum Petra can shop around for groceries, shopping the sales at the supermarkets and going to the market once a fortnight for fruit and vegetables. She also religiously checks out her local op shops and buy-swap-sell groups and factory outlets for the family's clothing and any household items they need. She is home to look after the kids during the holidays and can take advantage of special offers for movie tickets because she is available. She cooks from scratch and grows a veggie garden, again because she has the time.
Petra regards staying at home as her job and says that if she didn't do the things she does then they wouldn't be able to survive on Dave's wage alone and she would be in a full time job, working 35 hours plus 8 hours travelling time for around $135, which is what she calculates would be left from her wage by the time she paid for all the extras.
Being a single income family may not work for you. Staying at home to run the house and family isn't for everyone. Both parents may have jobs they love or they may just prefer working in a paid job to working at home and be prepared to wear the costs by building them into their Spending Plan.
Couples need to tally up the score and may just find out that there really is more of an upside to a one-income family than anyone could have ever imagined.