Many parents dream about being able to stay at home with their children full time. You can be there for all the major milestones and build those unbreakable bonds. But many parents struggle with taking that leap due to the unknown of their financial stability. This leaves many searching for financial advice for stay at home moms.
There is a ton to take into account when becoming a stay at home mom. If you were the main breadwinner in your home, this cut in income could alter your whole way of life.
Many families consider a parent staying at home due to rising childcare costs. In many cases, childcare can cost more than many parents’ yearly income.
Financial Advice for Stay at Home Moms
If you are ready to take this leap in your parenting journey, then check out this financial advice for stay at home moms
This change will affect your family’s budget drastically. You will need to sit down with your spouse to determine how much income is needed to survive. Which means you’ll need to sit down with your spouse and talk about how to make it work.
Having the Right Mindset
First of all, there’s no need to feel guilty about not contributing financially to your family. Caring for the kids and home is a full-time job. Being a stay home mom is more work than two full-time jobs, as you never get a day or even hours off! You are on call 24/7.
Some research surveys have indicated the average stay-at-home parent should be over $160,000 a year. This number is due to everything included, such as cooking, cleaning, doing laundry, driving kids to school or kindergarten, and household management.
Another thing that you need to agree on is how you’ll split chores. While you will take on a larger majority of the responsibilities, it doesn’t mean you are the only one to work in the home. Having your children be responsible for chores will lessen your load. Also, ask your spouse if there are household things they prefer to do such as mowing the lawn, taking the trash out, or laundry.
Just like you need to talk about your responsibilities, tasks, and chores, you also have to talk about financial affairs.
Be Involved in Family Finances
One of the top pieces of Financial Advice for Stay at Home Moms is to be involved in your family finances. There is no quicker way to feel stressed than to not know what is going on. Many moms will take on the full role of keeping up with the finances, while others feel more comfortable with an “allowance” so to speak.
You need to have your say in big financial decisions. These included making investments, property ownership, as well as retirement funds. It’s utterly unfair for a working partner to be handling all the crucial matters.
So, make sure that your name is on the deed to the house, cars, and mutual bank accounts too. This kind of shared ownership will protect you in case of a divorce, as it will grant you a legal right to half of everything. Don’t let the fact that you’re not coming home with a paycheck put you in an awkward position in which you’ll be deprived of your rights.
Planning for Retirement
Another good piece of financial advice for stay at home moms is to plan for your retirement. No matter how much you trust your spouse and count on the money from their retirement funds, things do sometimes take a turn for the worse. Instead of that, you can open a spousal Individual Retirement Account (IRA).
Finally, although the “mine, yours” attitude should transform into “ours,” meaning that you and your spouse should work as a team and have a single household budget. You can use accounting software to keep tabs on your spending habits. Doing this will allow you to make cuts when it’s necessary and see where your money is going.
Work From Home
There’s another huge piece of financial advice for stay at home moms is to start working from home.
Even if the company you work doesn’t offer this perk, you can still freelance and make some money.
Doing this will give you a sense of financial independence, and it will be a win-win situation. You’ll both have an opportunity to stay at home and raise your kids and contribute to your family budget.
According to the latest research, approximately 18% of U.S. parents work from home. Although we’ve already said that being a stay-at-home parent is a full-time job, you can still carve out a couple of hours a week to do a side hustle.
Stay Home Mom Side Hustles
Not only will this help your family make ends meet but offer you a certain degree of financial stability. You will also be able to keep up with the latest trends in your profession and stay marketable.
As freelancers enjoy pretty flexible schedules, you can work in the morning while you’re kids are at school or in the afternoon when they’re taking a nap.
You can even start your own small business on the internet and transform your hobby into a source of income. Blogging, making and selling different items on Etsy, or even becoming a virtual assistant are all great options. Learn How to Start a Blog in less than 15 minutes here.
Make a Meal Plan
When you’re living on one income, you need to save every dime and have a plan for any big purchase.
Food can be a major money pit, which means that you can easily reduce your expenses by planning your meals.
It’s usually very tempting to take your kids to a fast-food restaurant or order some food online, but this is an expensive and not particularly healthy option.
Here’s how you can avoid all these traps of acting on impulse and save a lot of money.
- Create a meal plan and purchase all the ingredients in advance, as this will discourage you from eating out.
- Another good idea is to start using coupons, discounts, and loyalty cards as well as think about buying in bulk.
- If you are likely to be tempted by all the options at the store, or just want to save on gas, you can order your food online and have it delivered through Instacart.
This way, you’ll save a lot of money and develop healthy eating habits in your kids.
Financial Advice for Stay at Home Moms
Being a single-income household means that you’ll have to be very careful with your money, and that’s doable with some planning. However, you should never put your financial future in somebody else’s hands even if that person is your significant other. So expect the best but prepare for the worst-case scenario, especially when it comes to money.