Megan is the mother of a 20-month-old daughter, and she and her husband have another baby on the way. He works full time, and Megan works four days a week as a speech therapist. "I love my job, but my concern is that, going forward, the cost of childcare for two children may be almost as much as what my salary is," she says. "I'm wondering if I can afford to make the switch from career woman to full-time mom."
Suze takes a look at all of Megan's finances. When she is working, Megan and her husband's monthly income after taxes is roughly $9,000. They have monthly expenses of $6,583; monthly savings of $2,417; and an emergency fund of $6,000.
But if Megan quits to stay at home, their monthly income would drop to $6,666. Their monthly expenses would be $5,783; their monthly savings would be $883; and they would keep their $6,000 in nonretirement savings.
Can Megan afford to be a stay-at-home mom?