Stay-at-Home Mom (SAHM) vs. Going Back to Work
SAHMs Look at Family Finances, Child Care Expenses & Cost of Working
Oct 1, 2009
Going back to work or deciding to become a stay-at-home mom can be a difficult choice for new mothers. There are many things to take into consideration when deciding what is best for the family, including family finances, individual and family priorities, child care requirements, and the cost of working out of the home.
Look at Family Finances and Create a Family Budget
Break down the family finances and creating a family budget that works is one of the first things to do when deciding if going back to work or becoming a stay-at-home mom (SAHM) is the better option. Often people spend money without a budget or tracking system in place, so they may have no idea where the funds are going. This can result in the belief that more money is needed for family expenses than is actually the case.
Tracking expenses and spending over a period of time and creating a budget that trims any excess spending can go a long way to making a family comfortable with the idea of having mom stay at home with the kids.
Calculate the Cost of Child Care Expenses Compared to Becoming a Stay-at-Home Mom
Child care expenses should be taken into consideration when deciding between becoming a stay-at-home mom and going back to work. Unless there is a friend or family member available to offer free child care, the choice will be between in-home child care and private or public daycare. Expenses can vary greatly based on location, length of child care required, number of children in care, and experience of the daycare provider(s).
When calculating the cost of child care and comparing it to income, be sure to look at the after-tax realities. Do not use the pre-tax salary to determine the percentage of income that will go to child care; the money spent on daycare is an after-tax figure and calculations need to take that into consideration.
Calculate the Cost of Mom Going Back to Work
Many people fail to consider the cost of working out of the home when making a decision about going back to work or staying at home. In order to get a reliable figure for working expenses, it is important to take all expenditures into consideration. Some things to consider when calculating the cost of going back to work:
- gas money for driving to and from work
- money for take-out food on nights when mom and dad are too tired to cook after a long day at the office
- a clothing budget so mom can dress appropriately for the workplace
- potential loss of income predictions for times when the kids will be too sick to go to daycare
- money required for workplace celebrations, such as lunches out and pitching in on birthday and holiday party gifts
- additional daycare expenses that might be accrued on days when mom or dad are running late for pick-up
The dollar amounts that need to be budgeted for these expenses will vary depending on estimates regarding which of these costs will be a factor and how often they'll come into play. But while it might not be possible to get an exact figure, it is important to brainstorm all potential costs and budget accordingly when looking for an accurate cost comparison between working out of the home and working as a stay-at-home mom.
Whether the ultimate decision is going back to work or becoming a stay-at-home mom, it is important to consider the needs and priorities of the individual and the family as a whole. Looking at family finances, researching child care expenses and considering the cost of returning to work, coupled with a heartfelt family discussion, will go a long way toward making the right decision for the family.
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