A Balancing Act

Money Management Tips for One-income Families

By Dorothy Nelson

For many couples, deciding to have children brings an additional question: "Can we cover household expenses and pay for a new baby with one less financial provider in the home?" For those families who opt to have one parent stay at home after the birth of a baby, smart money management becomes more crucial than ever. One way to do this is to start with understanding what you've got, then planning for what you need. Here are some suggestions for how to live within a budget in a single-income home.

When asked to estimate how much money is spent in a two-week period for household expenses, many parents have a hard time coming up with a figure. The easiest way to calculate how much you spend overall is to identify specific regular expenses, for example: $90 for groceries, $20 for dry cleaning or $90 for bills. Once you've made a list, it's easy to come up with a monthly budget. It may help to use your checkbook or a simple computer program to record and compare monthly expenditures. When trying to minimize expenses, it's sometimes hard to give up things that we want, particularly if we've grown accustomed to having them. If the above exercise shows that you are spending an excessive amount (as it relates to your income) on dining out, it's important to acknowledge that expense and discuss alternatives. This step involves compromise and sacrifice, but it's integral to saving money.

Want to see more?

• Making Change Work: Husbands and Wives in Stay-at-home-Dad Families
• Pressure to Provide: Balancing the Responsibilities of Father and Husband
• One Family, One Income: Making it Work Today
• Talk about it!