Sacrificial anode said:
Husband and wife. Number of kids doesn't matter.
Hmm. Economic reasons for not being viable.
If it's just husband and wife, and assuming they both work, that's not going too be much different from two single people.
Let's say the household expenses for the "family" are...
$600 a month housing
$200 a month utilities
$500 a month on car expenses (car note, gas, maintenance)
$100 a month per person food expenses. (2 people = 200)
$200 a month savings for "old age."
Now, assume husband makes $30,000 a year from his job, which breaks
down to $2500 a month. Wife stays home.
2500 - 500 (income tax) - 100 (health insurance) gives us a take home
of 1900 per month.
1900 - 1700 = 200 net per month to do whatever with. Save it, spend it
on the lotto, whattever.
Now, add in a kid, and we'll assume the costs of a kid are another $100 for
food, another $100 to the insurance premium.
Net income drops to $1800. Expenses increase to $1800. The family is still
socking away $200 a month for retirement.
Add another kid. Insurance premium stays the same, but now, assuming the
parents want to keep that retirement account going, the expenses are
at $1900. More than they make. And that $600 a month housing covers a
small apartment or a house, but the place may not be big enough any more
for two adults and two growing kids.
S, the other parent goes out and gets a job, which means its own
transportation expenses, but the insurance coverage from Parent A is still
enough to cover all of them. So Parent A brings home $1800 per month,
Parent B brings home $2000 a month.
3800 (net income)
-1000 (mortgage on larger home)
-300 (utilities)
-700 (car expenses)
-400 (food for four)
-200 (retirement account)
That's 1200 a month net, but Mom's out of the house, and it doesn't allow for
college savings, clothing costs, car insurance, or any of the "one time"
emergency purchases. Let's add another $300 for car insurance on both
vehicles, with more than the bare minimum. That knocks us down to $900
a month net. Add another kid. That leaves us $800, three kids, no savings
yet for college. So. the parents switch some numbers to sock away $200
per kid for college, raise the retirement savings to $300 a month. They're
still netting $100 a month.
Now, here's the problem. There's no day care cost in any of those numbers,
and that could easily run a couple hundred, which could be negated by
spending the retirment fund. Or, on the other hand, the couple becomes
a triad, with two parents working, that last $100 goes to feed the new
parent, and there's someone at home taking care of the kids. With that
third parent, the working parents can work overtime (whereas before, since
they weren't covering day care, they were on the same schedule as the kids)
and get the promotion for the better job, with more pay.