Many families require both parents to work for financial sustainability. However, there are many families where one parent remains home to care for the kids. If your family has the financial flexibility for only one parent to work, and that arrangement aligns with your family values, that structure can work well. However, if you’ve contemplated a two working parent household, we discuss the potential benefits for you and your kids.
Additional Opportunities for Your Family
Increasing your household income could afford additional opportunities to your family. A broader household budget can help to provide or allow for:
- Family vacations.
- Private school and/or college funding.
- Home improvements or moving to a different home.
- A new car.
- Additional retirement savings.
- An earlier retirement for you and/or your spouse.
Counterbalance to Inflation
Currently, American households are experiencing the impacts of inflation. A great way to offset inflation impacts (other than reducing spending) is to increase your household earnings.
Additional Family Security
Whether or not you currently need new household income, dual income households inherently gain additional financial security if there’s ever a gap in employment.
Providing a Role Model for Your Kids
Depending upon your values, a dual income household can sometimes support the role modeling you want to create for your kids, particularly for girls. Seeing parents work, including parents of the same sex, can impact a child’s future career aspirations. Working parents should always talk to their kids about the benefits of work, including:
- Financial means that allow you to provide for family’s wants and needs.
- Compensation and benefits such as health insurance.
- The rewards of working hard and advancing your career relative to life objectives.
- The importance of work relative to society and how jobs and careers are interrelated.
- Personal satisfaction of careers and the importance of doing something you enjoy that also meets your financial needs.
- How your job relates to your family and what it offers your family.
Remember to tell your kids about your career and allow them to learn about different jobs. These discussions as they grow help to provide the knowledge they will need when they face the big decision of “What do you want to be when you grow up?”.
Even if you don’t currently need additional income, there are benefits to gaining a level of personal financial independence. Having your own source of income and financial resources gives you extra flexibility to pursue things that you might want to do independently. Sometimes one spouse might feel differently about an expenditure and a level of financial autonomy allows latitude. Your own source of income also provides greater security. Hopefully you don’t need it, but it can be essential if you ever face divorce or the death of a spouse.
Professional and Personal Self Confidence
There are also non-financial perks to employment. Working often enhances self-confidence, both professionally and personally. You can gain a strong sense of self-worth in your achievements, recognitions, role in society, independence, etc. Working with colleagues also expands your social and professional circles, offering new viewpoints, paths of learning, and networking opportunities.
If the benefits outlined above create an interest for you and your family, we discuss the fact that the work environment in 2022 could be opportunistic in our article Women in the Workforce: Now is a Great Time to Start or Expand Your Career.
SageVest Wealth Management works with families of all ages, and differing objectives. We assist you in evaluating the overlay of your personal and financial objectives, helping you to make informed life decisions. Please contact us for more information on how we can support your family’s financial decision making.