When a couple welcomes a child to their family many may want one parent to stay home with the new addition rather than returning to work but that decision comes with a number of tradeoffs including saving on expensive child care which can cost more than college tuition in more than half of states according to the Economic Policy Institute while potentially impacting the stay-at-home parent’s future salary prospects or career growth.
The Financial Reality of a Single-Earner Household
In Hawaii a working parent needs to earn at least $102,773 a year to support themselves a non-working partner and one child according to SmartAsset’s analysis of Massachusetts Institute of Technology living wage calculator data which covers basic living expenses such as rent groceries, health care transportation and other necessities but excludes discretionary costs like travel or entertainment while including basic apparel household supplies and personal care products.
Highest Cost States for Supporting a Stay-at-Home Parent
Hawaii requires the highest single-earner income of any state to support a three-person household, while if both parents work, the family needs at least $119,226 combined, and the median household income in Hawaii sits just over $98,000 according to Census Bureau data highlighting how challenging these numbers can be in high-cost areas where California follows closely at $97,656 and Massachusetts at $97,261.
Lowest Cost States for a Single-Income Family
The most affordable states for one parent to work while the other stays home include West Virginia, where the working parent needs about $68,099, followed by Arkansas at $68,141, Mississippi at $70,242 Kentucky at $70,408 and North Dakota at $70,949 showing that in these lower-cost areas a single moderate income can more realistically cover a family of three on essentials alone.
Hidden Costs of Being a Stay-at-Home Parent
Leaving the workforce for a few years can have long-term effects on a parent’s career, including missed salary increases, resume gaps that make future job opportunities harder, and falling behind on career goals, which often affects women more since they represent 82 percent of stay-at-home parents according to Pew Research.
Important Tradeoffs Families Should Consider
Even in households with some financial flexibility, many parents may not fully weigh what they give up in five to ten years by stepping away now, and in some cases, if one parent’s salary barely covers child care costs, a career break becomes the only practical option, making these factors essential to evaluate for each family’s unique situation.
Guidance for Making the Decision
Families considering one parent staying home should work with a financial professional to model different scenarios and understand the potential impact on their long-term goals, since actual needs can vary based on specific location within a state, existing lifestyle, debt savings, and other personal circumstances, while the SmartAsset figures provide a helpful baseline using the latest MIT living wage data.
