Report reveals how much a family needs to earn for one parent to stay home with the kids in 2026
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For many parents, one of the first big money questions that comes up after having a baby is: does it make financial sense for one of us to stay home?
With high child care costs, it’s an idea that many parents might consider. But a recent SmartAsset study suggests that in 2026, getting by on a single paycheck might be harder than ever for families (1).
In the report, a ranking was made for how much a single working parent needs to earn in every U.S. state to support a household with a nonworking partner and one child. The most expensive states were, predictably, Hawaii and California, while the cheapest were West Virginia, Arkansas and Mississippi.
The takeaway? Where you live can make or break the stay-at-home option. But even if you can make the math work, there are broader implications to consider.
One of the factors that plays into whether one parent can afford to stay home is where you live.
Using MIT Living Wage Calculator data, SmartAsset added up the basics (like housing, food, health care and transportation), leaving out extras like entertainment, to see how much a single-income parent would need to make to support their family.
Hawaii topped the list, where a working parent needs to earn at least $102,773 a year to support a family of three on one income. California, Massachusetts, New York, Connecticut and Washington also ranked among the most expensive, with single-income families of three needing more than $90,000.
On the other end of the spectrum is West Virginia, where one parent needs to earn about $68,000 a year for the other to stay home. While lower than in some Southern states, the average earnings in West Virginia lag behind the national average, so that is important to remember (2).
Another big reason that families consider dropping to one income is the cost of child care. In 38 states and Washington, D.C., full-time child care costs more than public college tuition, according to the Economic Policy Institute (3).
So on paper, staying home can look like a straightforward cost-saving move. If one paycheck barely covers day care, why not just cut out that expense altogether?
But eliminating child care costs doesn’t automatically make a one-income household affordable.
As SmartAsset reported, in Hawaii, a family where both parents work needs to earn about $119,226 a year to cover basic expenses, including child care. That’s only about $16,500 more than what’s required for a single-income household — a smaller gap than many families might expect.
For context, Hawaii’s median household income in 2024 was just over $98,000, according to Census Bureau data (4), meaning many families fall short in either situation.
Monthly bills aren’t the only factor families need to weigh. There’s also the long-term cost to the parent who steps away from work to care for their child.
Leaving the workforce for several years can have lasting consequences, especially when it comes to future earnings and career growth, Emily Green, head of wealth management at Ellevest, told CNBC Make It (5).
Women are especially affected. About 82% of stay-at-home parents are women, according to Pew Research Center data from 2021 (6), making them more likely to experience career interruptions, missed raises and slower retirement savings.
“In households where there’s a little more financial wiggle room, women often don’t think about what they may give up in the long term — say in 5 to 10 years — by leaving their jobs now,” Green said (5).
And when the stay-at-home parent is ready to head back to work, they may find it challenging after taking a long break. Resume gaps can limit job opportunities or lead to lower pay than before, a hidden cost that doesn’t show up in a monthly budget.
For some families, the decision boils down strictly to numbers.
“I have seen many women leave their jobs because their salaries don’t cover the cost of child care,” Green told CNBC. “In some households, that math means a career break is inescapable.”
Before making the leap to a single-income household, financial experts say it helps to walk through the numbers and trade-offs carefully. Start with these four simple steps.
“Those who fail to plan are planning to fail” is a familiar adage — and one that certainly applies to personal finance. Before you make this major life decision, figure out how much of your current lifestyle a single income will cover, and which expenses you can trim.
A financial advisor can help you crunch the numbers and build a plan that works for your family. But with something as sensitive as your finances — and a decision as big as potentially leaving the workforce — it’s important to find someone you trust.
That’s where Advisor.com can come in. The platform connects you with an expert near you for free.
Advisor.com does the heavy lifting for you, vetting advisors based on track record, client ratios and regulatory background. Plus, their network comprises fiduciaries, who are legally required to act in your best interests.
Just enter a few details about your finances and goals, and Advisor.com’s AI-powered matching tool will connect you with a qualified expert best-suited for your needs based on your unique financial goals and preferences.
Finding the right advisor isn’t always easy — there’s no one-size-fits-all solution. That’s why Advisor.com lets you set up a free initial consultation with no obligation to hire to see if they’re the right fit for you.
Once you’ve got the right financial advisor in your corner, the next step is getting a clear picture of where your money’s actually going. That starts with the basics — budgeting and tracking your spending.
If you enjoy creating spreadsheets, this is your time to shine.
To make a basic budget, record your monthly income, expenses and debts. Then, consider the 50/30/20 rule for simple financial management: 50% of your income for needs (essentials like housing and groceries), 30% for wants (purchases like streaming subscriptions and dining out) and 20% for savings, investments and debt repayment.
Not a fan of analog accounting?
You can also let Rocket Money work behind the scenes to keep your finances on track.
With the app’s premium Net Worth feature, you can link all your accounts — banking, investments, retirement, property, vehicles and even manually added items like jewelry — and it shows your assets versus liabilities in real time, no spreadsheets required.
With free tools like subscription tracking, bill reminders, credit scores and budgeting basics, plus premium features such as automated savings and customizable dashboards, Rocket Money makes it easier to see the big financial picture, stay on top of your investments and keep you focused on building your wealth.
If the big picture still doesn’t add up to an affordable stay-at-home parenting option, you may be able to spend less to make up the difference. That could mean cutting back on nonessentials, as well as finding better deals on the things you really need.
Some costs — like home insurance for homeowners and car insurance for licensed drivers — are unavoidable.
And homeowners insurance is getting more expensive. The average single-family homeowner already pays an eyewatering $2,370 in yearly premiums (7), but to make matters worse, 47% of policyholders saw their rates go up in the past year, according to a 2025 study by J.D. Power (8).
This is bad news for those who simply auto-renew with their current provider every year. In such a quickly shifting landscape, it can pay off to take two minutes to shop around for better rates.
That’s why OfficialHomeInsurance.com makes it easy to find the coverage you need without the hassle of calling multiple providers for quotes.
Simply fill out a few details and you could save an average of $482 a year — which you can put toward your goal of living off one salary.
Drivers are also paying a pretty penny on premiums these days. As of January, the national average cost of car insurance is $2,297 annually (or $191 per month), according to Experian data (9). But rates can vary widely depending on your state, driving history and vehicle type.
By using OfficialCarInsurance.com, you can easily compare quotes from multiple insurers, such as Progressive, Allstate and GEICO, to ensure you’re getting the best deal.
By making a financial plan, sticking to your budget and lowering the cost of insurance, you may find yourself in a better position to stay home with your kids.
But what do you do when the unexpected happens? That’s where an emergency fund comes in.
Whether you’re a single- or dual-income household, unforeseen circumstances like layoffs and medical crises can throw even the best-laid financial plans into disarray. But an emergency fund that can cover three to six months of living expenses could help you weather the storm.
A high-yield account like a Wealthfront Cash Account can be a great place to grow your emergency fund, offering both competitive interest rates and easy access to your cash when you need it.
A Wealthfront Cash Account currently offers a base variable APY of 3.30%, and new clients can get a 0.75% boost during their first three months on up to $150,000 for a total APY of 4.05%. That’s more than 10 times the national deposit rate, according to the FDIC’s February report (10).
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, Wealthfront Cash Account balances of up to $8 million are insured by the FDIC through program banks.
Wealthfront also offers joint cash accounts, which can help couples or families manage their finances all in one place. You can set up shared cash categories to see how money is being spent, and even link external accounts like 401(k)s to create a crystal-clear financial picture.
Choosing to have one parent stay home means avoiding day care expenses, but it should also take into account housing, health care, an emergency fund and retirement — and whether or not they can all be supported by a single paycheck. There are also the long-term career implications to consider.
For many families, the decision comes down to a combination of parenting philosophies, whether the math works and being able to plan for whichever option is the best fit.
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SmartAsset (1); USAFacts (2); Economic Policy Institute (3); Federal Reserve Bank of St. Louis (4); CNBC (5); Pew Research Center (6); ICE Mortgage Technology (7); J.D. Power (8); Experian (9); FDIC (10)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
