Can You Afford Two Incomes?

The battle of stay-at-home parent versus working parent has been around for longer than anyone cares to remember. There are a great deal of modern parents that will swear that they HAVE to work in order to make end meet. This is a highly explosive statement because of the expense that is incurred with working outside of the home. The question is no longer “How can I afford to stay home?” but “Can I afford to work outside the home?”. This is where the true measure of expenses comes into play. What does it truly cost for both parents to work?

Childcare Expense

What you pay for childcare will vary according to what part of country you live in, how many children you have and the age(s) of the child/children. Childcare costs vary from $400-$1000 per month for one child. This means up to $12,000 per year in childcare alone.

Food and Drinks

The likelihood of bringing your lunch and drinks everyday is remote at best. Just two take-out meals a week for the price of $5 is $600 a year. Another consideration is that with both parents working it is highly likely that more take-out meals will be eaten at home. One take-out meal a week for a family of four ranges from $30-$50. This results in $120-$200 a month which equals 1-2 utility bills.

Commuting

The price of commuting is a factor when both parents work. The price of gas or subway prices can average anywhere from $25-$50 a week. This adds up to almost $2400 a year. Don’t forget to factor in the wear and tear on the vehicle being used. This increases the expense with the maintenance costs.

Work Clothes and Dry Cleaning

Depending upon the job each parent has, you must factor in the cost of clothing and dry cleaning. These can reach a high price tag if the parent needs new clothing to even start the job. Hundreds of dollars are spent on ‘office attire’ and on the dry cleaning bills acquired to keep them looking their best.

Sick Time

What money sacrifices are being made when a child is sick? If the parent available to leave work to retrieve a sick child is on an hourly wage, what does the lack of work do to the family budget? The childcare expenses must be paid whether the child is there or not. The bills still have to be paid whether the income is there or not. What happens when the income isn’t there because of sickness of a child or the working parent?

All of the this comes down to “what does it cost for both parents to work?”. Adding up just the basics of childcare, food, transportation and clothing we come up with annual costs of $7920-$17640. This is for one child and not taking additional restaurant meals into consideration. If you eat out more than once a week then the number goes up. Does the money the job brings in outweigh the expense? Determine your numbers and find out.