Making the decision to return to work after staying at home with children, or leaving the workforce to stay at home is sometimes a difficult decision for parents. The financial aspects of that decision will be based on the elimination of expenses incurred while staying at home, examples of which are life and health insurance premiums that may be replaced by employer-provided plans. When looking at the benefits of working, income should be considered right alongside the ability to build a retirement fund through 401(k) contributions, the cost of health and life insurance and the expenses associated with being part of the workforce.
Keep Working or Stay at Home?
Should You Work Outside of the Home?
Working Outside the Home
Income & 401(k)
$ 2,725
Premiums & Expenses
$ 500
State & Federal Taxes
$ 825
Social Security
$ 191.25
Net Earnings
$ 1,208.75
By working outside of the home, you will reduce your current expenses by $1,250. With net earnings of $1,208.75 you will see an impact on your monthly budget of $2,458.75.