A spouse needs to earn at least $97,656 annually in California for one parent to stay at home with a young child, according to a recent study by financial technology company SmartAsset.
The research examined the income requirements across all 50 states, revealing significant variations based on location and cost of living.
Cost of Being a Stay-at-Home Parent
The study analyzed essential family expenses, including housing, food, healthcare, transportation, and other necessary costs for a household with two adults and one young child. Hawaii topped the list with the highest income requirement, where a single earner must make $102,773 annually to afford having one parent stay home, according to The Hill. When both Hawaiian parents work, the combined income needed rises to $119,226 due to childcare expenses, which average approximately $33,363 per year in the state.
California ranked second, requiring $97,656 for a single-income household. If both parents work in California, the family needs at least $115,814 combined, with childcare and related expenses for two working parents totaling $35,651 annually. Massachusetts followed closely at $97,261 for a single income, though dual-income families there need the highest combined earnings at $124,842, with childcare costs reaching $44,221, SmartAsset reported.
States in the Northeast and West Coast generally required higher incomes. New York families need $92,290 for one parent to stay home, while Connecticut requires $90,542, Washington $90,459, and New Jersey $89,918. The financial burden reflects higher housing costs and living expenses in these regions.
Southern and Midwestern states showed more affordable thresholds. West Virginia had the lowest requirement at $68,099, followed by Arkansas at $68,141 and Mississippi at $70,242. Kentucky and North Dakota rounded out the five most affordable states at $70,408 and $70,949, respectively.
Financial Benefits of Stay-at-Home Parenting
The study's findings highlight one of the primary financial benefits of having a stay-at-home parent: eliminating childcare costs, which can significantly strain family budgets when both parents work. However, financial considerations extend beyond basic expenses. Experts note that single-income arrangements require careful planning around insurance, emergency funds, and retirement savings for the non-working spouse.
Cassidy DeJohn from SmartAsset emphasized the importance of communication between partners about their financial arrangement, noting that stress can build when one person bears sole responsibility for either earning income or managing childcare. The decision ultimately depends on each family's specific circumstances, location, and financial priorities, as per Live Now Fox.
