| Most stay at home moms quickly find that they | | | | How else to pay for swimming lessons, art |
| wouldn't trade what they're doing for the world. It | | | | classes, organized sports and other activities your |
| can be very satisfying raising your family on your | | | | children may be interested in? It may be difficult |
| own rather than paying for daycare. | | | | to find enough children for your own kids to play |
| But it's not all fun, even when you really enjoy | | | | with regularly, and these classes can help you to |
| being with your kids all day. And worst of all can | | | | get a bit of a break (even if you're just sitting |
| be the financial traps that too many stay at | | | | and watching them), and your kids get social time. |
| home moms fall into. | | | | You may also choose to put your 3 or 4 year old |
| 1. Not saving for retirement. | | | | child in a preschool program. I did this with my |
| This is one of the most common failures for stay | | | | daughter, and while it was expensive it was very |
| at home moms, and it can have a tremendous | | | | much so worth it. Makes kindergarten quite the |
| impact on your later years, even if you only stay | | | | relief, financially speaking. |
| at home until your kids are all in elementary | | | | 3. What if...? |
| schools. And it only gets worse if you choose to | | | | Many single income families aren't ready for the |
| stay at home the entire time you have kids at | | | | big what-ifs in life. Like what if your husband loses |
| home. | | | | his job? I've just gone through that one |
| There are options for stay at home moms to | | | | personally, and it's a pain, even though I earn an |
| save for retirement. The first thing to do is to roll | | | | income at home. |
| over any 401k money into Roth IRAs. This will | | | | Do your best to have savings to cover at least |
| give you more flexibility with the money. If you | | | | 3-6 months of living expenses. This may not get |
| can't afford to take a tax hit, take your time with | | | | you through the crisis, but it gives you time to |
| this one. | | | | figure out how to handle it. |
| You can also contribute to a Spousal IRA. These | | | | And don't forget that expenses can increase at |
| can be either a traditional or Roth IRA, and you | | | | such times. When my husband was laid off, rent |
| need to have one. Try to contribute the | | | | wasn't the most painful part financially speaking. |
| maximum each year if your budget can afford it. | | | | Adding in the cost of COBRA coverage to keep |
| You will be grateful in your retirement years. | | | | our health insurance was. |
| 2. Assuming daycare costs are completely gone. | | | | And don't forget that even when things are going |
| Sure, once you're staying at home you probably | | | | well financially the car can break down, or the |
| don't HAVE to pay for any sort of childcare. But | | | | refrigerator, or the plumbing in your house turns |
| other expenses may take that money right back | | | | out to be a complete mess. Have some money |
| out of your budget. | | | | set aside for such emergencies. |