4 Little-Known Perks That Financially Benefit Stay-at-Home Parents

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

It’s not easy for families to live on one income, but there are some benefits to doing so. Read on to find out a few financial perks for stay-at-home parents. [[{“value”:”

The latest data from the Pew Research Center shows that about 18% of American parents don’t work for pay, which was unchanged from 2016.

Families with a stay-at-home parent aren’t often associated with being financially better off than those with two working parents, but there are some benefits. Let’s look at four little-known financial perks families with a stay-at-home parent have.

1. Your transportation costs are lower

My wife homeschools our two kids, something she succeeds at after working for a short stint as a lawyer. She’s not alone, either; according to FlexJobs, 34% of stay-at-home parents left managerial or higher-level jobs to stay at home.

When she opted to stay at home, we ditched one of our vehicles. We’ve had just one car for our family of four for about five years, and it’s likely saved us a good chunk of change. Kelley Blue Book estimates that if someone purchased a vehicle for $19,272, the cost of ownership over five years — including fuel, financing, car insurance, maintenance/repairs, and depreciation — would be $35,998.

I’d like to say that my savings account has that much more money in it because I only own one car, but that’s not quite accurate. Still, with car insurance prices up 24% from 2022 to 2023, having one fewer car can definitely help families reduce their monthly expenses.

2. You don’t have to pay for child care

Managing your kids’ and work schedules can be very difficult and expensive. Many parents have to pay for some form of child care, and 47% of them spend more than $1,500 per month on it, according to Care.com’s 2024 Cost of Care Report.

Child care expenses can weigh on anyone’s monthly budget, and the report says that families spend nearly one-quarter of their income on it, and about 33% of families dip into their savings to help cover the cost.

Care.com’s report says 25% of Gen Z and millennial mothers say they’re stay-at-home parents either because they want to be home with their kids or because child care is too costly.

For some parents, staying at home may be cheaper than paying for child care. Of course, many people want to work, and stopping work can lower someone’s lifetime earnings if they re-enter the workforce later.

3. There are fewer daily expenses

There are many daily expenses working parents have to pay for that stay-at-home parents don’t. For example, the average American spends $1,945 on apparel and services (like dry cleaning) every year, and some of those costs go directly to a person’s work clothes. Since stay-at-home parents don’t have to buy work clothes, some of these costs can be kept out of the monthly budget.

Additionally, a report from Owl Labs says that office workers spend an average of $1,020 monthly on job-related expenses. For example, the average worker spends $16 on lunch daily, $8 for parking, $14 on commuting, and $13 on breakfast and coffee.

Not all apparel expenses or lunches out can be eliminated by staying at home. Still, if we estimate that at least one-third of those expenses go by the wayside, families would save about $988 annually from these costs alone.

4. You can still make money

While many stay-at-home parents don’t work, FlexJobs says 34% of stay-at-home parents work on freelancing projects to earn money.

Zippia estimates that the average side hustle earns about $483 per month. For many families’ budgets, that extra cash could offset some of the rising costs of housing and groceries over the past couple of years.

While staying at home isn’t the right choice for all parents, there are some financial benefits. And with more people able to make money from side hustles than in the past, there may be more work options for stay-at-home parents than in the past.

Alert: our top-rated cash back card now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More