# Can your family afford to live on one income? > Seven financial moves to make before a parent quits their job to stay home with the kids. - Title: Can your family afford to live on one income? · Kiplinger - Summary: Seven financial moves to make before a parent quits their job to stay home with the kids. The real income change isn't just salary minus daycare, factor in… - Keywords: single income, stay-at-home parent, childcare costs, family budget, daycare, life insurance, emergency fund, financial planning, david fisher, summit income planning group, 401k, health insurance - Source: Kiplinger — https://kiplinger.com/personal-finance/family-savings/can-your-family-afford-to-live-on-one-income - Published: 2026-09-16T12:15:00+00:00 - Read time: 3 min - Topics: single income, stay-at-home parent, childcare costs, family budget, daycare, life insurance, emergency fund, financial planning, david fisher, summit income planning group, 401k, health insurance ## The daycare cost dilemma With daycare costs soaring, many new parents wonder if one should quit to stay home. But how do you know if you can really afford it? ## Every choice has a cost People run the numbers and still can't decide because they're waiting for a choice with no downside. That version doesn't exist. > People run the numbers, get an answer they could genuinely live with and still can't decide. ## Calculate the real income change The actual change isn't just salary minus daycare. Factor in commute costs, meals out, work clothes, and how taxes will shift. ## You'll drop to a lower tax bracket The second income is typically taxed at a higher bracket. With one income, you'll pay less in taxes and add a new dependent. ## Some expenses will disappear You might ditch the second car, cancel cleaning services, and save on fuel and restaurant lunches. These add up fast. ## But other costs will rise Health insurance for the whole family will cost more. You'll also lose 401k contributions, employer matching, and future Social Security benefits. ## Get life insurance for both parents With no backup earner, life insurance becomes critical. Insure the stay-at-home parent too, replacing childcare and household work costs money. > Insure the parent who's at home, too. There absolutely is a cost to replace full-time childcare and household management. ## Consider survivorship life insurance Instead of two separate policies, look into survivorship or "first to die" insurance. One policy covers both spouses. ## Apply for credit before quitting Planning to buy a home or car? Do it while both incomes are on the paperwork to lock in better rates. ## Run a trial budget first Live on the single income for a few months before anyone quits. Save 100% of the other income to see if it's really doable. > You'll learn more doing that than any projection. ## Stack cash during the trial The trial period lets you test the budget and build savings fast. Use those months to beef up your emergency fund. ## Double your emergency fund The standard is three to six months of expenses. With one earner and no backup income, aim for six to 12 months instead. ## Use a high-yield savings account Stash your emergency fund in a high-yield account to make it grow faster while you're building it up during the trial. ## Plan for returning to work If you want to go back later, transition to part-time or freelance work. A resume with reduced hours beats a five-year blank. > A resume with a reduced hours period reads completely differently than one with a five year blank. ## Keep skills and networks alive If working isn't feasible, maintain certifications and make time for continuing education and networking during the stay-at-home years. ## Talk about power dynamics now One partner will become fully financially dependent. Discuss how money and household work will be handled to keep things fair. ## Share decisions and responsibilities The stay-at-home parent shouldn't do all household work around the clock. Financial decisions should still be made as a couple. ## Consider a financial adviser Before making the change, talk with an adviser. They can model scenarios, spot gaps, and help you plan without losing long-term goals. ## Key takeaway The real income change isn't just salary minus daycare, factor in taxes, benefits, commute costs, and run a trial budget before anyone quits.