When a couple welcomes a child to their family, many may want one parent to stay home with the new addition, rather than returning to work.
But that decision comes with a number of tradeoffs. Having one parent stay home may help the family save money on child care, which can cost more than college tuition in more than half of states, according to data from the Economic Policy Institute. However, it could negatively impact that parent's salary prospects or career growth if they later decide to return to work.
Another factor to consider is if the working parent's income is enough to support the entire family. In Hawaii, a working parent needs to earn at least $102,773 a year to support themself, a non-working partner and a child, according to a recent SmartAsset analysis of Massachusetts Institute of Technology living wage calculator data.
The analysis includes estimates for basic living expenses, including rent, groceries and health care. It doesn't account for discretionary costs like travel and entertainment, but includes cost estimates for basic apparel, household supplies and personal care products.
In Hawaii, the working parent needs to earn the most of any state to support a three-person household, the analysis found. However, if both parents work, the family needs to earn at least $115,814 a year to afford basic living expenses including child care, SmartAsset found. The median household income in Hawaii is just over $98,000, according to Census Bureau data.
Here's how much one parent needs to earn so the other can stay home in every U.S. state.
Hidden costs of being a stay-at-home parent
Leaving the workforce for a few years can have long-term effects on a parent's career, Emily Green, head of wealth management for Ellevest, previously told CNBC Make It. This often affects more women than men since women represent 82% of stay-at-home parents, according to Pew Research.
"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 5-10 years — by leaving their jobs now," Green said.
Leaving the workforce for an extended period of time could mean missing out on steady salary increases, adding gaps to your resume that could make it harder to secure future job opportunities and falling behind on long-term career goals, Green said.
Those tradeoffs may be worth it to some parents and necessary for others who don't have other viable child-care options.
"I have seen many women leave their jobs because their salaries don't cover the cost of child care," Green said. "In some households, that math means a career break is inescapable."
Regardless, they are important factors to consider when thinking about your family's financial situation. Families may want to work with a financial professional to see how various scenarios may impact their long-term goals.
Want to get ahead at work with AI? Sign up for CNBC's new online course, Beyond the Basics: How to Use AI to Supercharge Your Work. Learn advanced AI skills like building custom GPTs and using AI agents to boost your productivity today. Use coupon code EARLYBIRD for 25% off. Offer valid from Jan. 5 to Jan. 19, 2026. Terms apply.
