The Financial Benefits of a Stay-at-Home Parent

Before Lance Somerfeld’s son was born in baby-mom-readingJuly 2008, he was working as a sixth-grade teacher at a high-need public school in the Bronx, earning a salary of roughly $45,000. He left his career to be a stay-at-home dad, wanting to be involved in his boy’s early milestones—milestones Somerfeld’s own father missed while he worked a full-time job throughout Somerfeld’s childhood.

The decision to become a stay-at-home dad also made sense financially. “For a quality day care or a nanny, it would have cost us about my take-home salary,” Somerfeld says. “Why would I pay someone else to take care of my child when I can do it for the same cost?” His wife’s job as a corporate actuary also served as a financial cushion.

The decision for a spouse to become a stay-at-home parent has significant financial consequences. In many cases, losing a source of income is too much for a household to bear. However, for families like the Somerfelds, the monetary benefits and the extra time spent with their children outweigh the costs.

Click here for more on the financial benefits of becoming a stay-at-home parent.

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Is Your Teenager Ready for a Credit Card?

Teaching teenagers how to save and Teen-with-Credit-Card1spend responsibly is one thing. But teaching them how to use a credit card? That presents a host of new challenges, with the potential for slipups that could have damaging long-term effects.

To apply for a credit card, anyone younger than 21 must either have a cosigner or verifiable income that proves they have the means to repay the credit.With stricter requirements in place today for, teenagers interested in using credit must rely on their parents. Before handing them a credit card, though, parents can gauge their child’s financial responsibility by seeing how well they manage a checking account.

Many banks offer checking accounts for applicants as young as 13, and they come with monitoring tools for parents. If the checking account is used responsibly, parents can start discussions with their teenager about credit cards.

Read this article to learn more about how parents can measure their child’s responsibility before handing them a credit card.