The Rise of Stay-at-Home Parents: How Does It Impact Your Finances?

Source: Thinkstock

Source: Thinkstock

The number of parents who are staying at home with their children is on the rise, and it isn’t just an increase in stay-at-home moms, either. Two recent Pew Research studies found there are more moms and dads who are staying home to care for the family. A Pew Research study, titled Growing Number of Dads Home with the Kids, states that the number of fathers who do not work outside the home has risen in recent years, up to 2 million in 2012. That’s nearly double the 1.1 million fathers who were staying at home in 1989. In fact, dads represent a growing share of parents who are staying at home, which has increased from 10 percent in 1989 to 16 percent in 2012.

As for moms, another report, titled After Decades of Decline, A Rise in Stay-at-Mothers, writes that the share of mothers who do not work outside the home rose to 29 percent in 2012, up from a low of 23 percent in 1999.

As more parents make the decision to stay at home, it begs the questions: Why are they staying home? And how does it impact a household’s finances?