5 States Where Parents Need the Most Income for One Parent To Stay Home
The cost of raising a child has increased substantially in recent years. According to U.S. News & World Report, it can cost anywhere from $241,106 to $513,722 to raise a child to age 17. A major factor in the cost of raising a child is day care or child care expenses.
A Care.com study found that parents spend a shocking 22% of their income on child care. The high cost of care has led many parents to stay at home, but it can be challenging to live on one income, particularly in certain states.
Read More: Middle-Class to Upper-Class -- 8 Steps To Build Generational Wealth
Find Out: 5 Signs You’re Losing Money Every Month — and How To Find the Leaks
Here are the five states where parents need the most income for one parent to stay home, according to SmartAsset.
1. Hawaii
In Hawaii, the single income needed for one parent to stay home was $102,773. This means one parent would need to earn six figures to enable the other parent to stay home. The income needed for two working parents would be $119,226, and the cost of raising a child for two working parents would be $33,363.
The island state topping the list for places where the most income is needed for a parent to stay home should not be too surprising, given the overall cost of living. According to BestPlaces, Hawaii's cost of living is 65.7% higher than the national average.
2. California
For one parent to stay home in the Golden State, the other parent would need to make $97,656. The income needed for two working parents was $115,814, while the cost of raising a child for two working parents was $35,651.
According to the California Department of Social Services, child care costs in the state for infants and toddlers alone cost around $700 per month, or $8,400 a year.
3. Massachusetts
For families wanting one parent to stay home, they may need close to six figures in Massachusetts as well. The single income needed for one parent to stay home was $97,261, as reported in the SmartAsset study. The income needed for two working parents was $124,842, while the cost of raising a child for two working parents was $44,221.
The cost of raising a child for two working parents in Massachusetts was among the highest in the nation.
4. New York
In New York, the single income needed for one parent to stay home was $92,290. For two working parents, the income needed would be $111,363, and the cost of raising a child for a two-income household would be $33,280.
Several factors contribute to the high income needed to raise a child in the Empire State, including higher-than-average home prices. According to Zillow, the average home value in the state was $502,162, an increase of nearly 4% from the previous year.
5. Connecticut
The single income needed for one parent to stay home in Connecticut was $90,542. For two working parents, the income needed increased to $115,398. The cost of raising a child for two working parents was $41,808, meaning that, on average, parents spend $3,484 per month on child-related expenses.
For many individuals, the high cost of child care makes it more reasonable for one parent to stay home, despite the nearly six-figure income needed to support a stay-at-home parent and one child.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion:
