Can You Afford to Stay Home With The Baby?

When Danny and Tracy Kofke got married, they committed to live on one salary for four years before they expanded their family. While his wife worked as a teacher, Danny, also a teacher and author of two personal finance books, said they made sacrifices to pay off debt and build an emergency fund.

The goal? The couple wanted one parent to stay home with the children. “Parents should start preparing for this way in advance,” said Danny Kofke. “There is no price you can put on having a parent stay home.”

For the past eight years, the Kofkes have raised their two daughters on one salary. Danny Kofke credits careful planning and tough financial decisions for the success of this venture.

If, like the Kofkes, you’re thinking about having one parent stay home with the new baby, you’ll need to figure out what it costs and how you’re going to pay for that.