According to a 2015 survey by the Pew Research Center, the median income for households with two full-time working parents exceeds $100,000, while those with only one full-time earner average around $55,000.
Navigating the significant difference in earnings can pose challenges for families with a single income. Relying on one paycheck can bring emotional as well as logistical hurdles.
Those who have thrived on a single income share their strategies for success:
1. Let go of ownership feelings.
When one partner is the sole provider, they may feel a greater sense of entitlement regarding spending. In contrast, the non-working partner may believe they shouldn’t indulge in spending. To address these feelings of ownership, couples can adopt a mindset of “our money,” where all earnings are pooled and managed together.
“The only way this partnership functions is if the external provider acknowledges the contributions and sacrifices made by the partner who stays home,” states David Stein, the founder of Money for the Rest of Us, who became the primary income provider while his wife took care of their three kids.
2. Assign responsibilities.
When Monica Louie transitioned from her job to care for her children, she initially found it difficult to cope with not providing a financial contribution. Even without a paycheck, she quickly discovered another means to contribute by managing the household’s everyday finances.
“By taking charge of our financial situation, I started feeling like I was playing a part in our family’s finances because my husband acknowledges my efforts to keep our budget in check and ensure we are minimizing our debt every month,” Louie remarks.
3. Establish a plan for personal expenses.
Having a mutually agreed strategy for handling personal expenses is essential for couples with one income.
Catherine Alford, who became the primary wage earner while her husband attended medical school, adopted this approach.
“Whenever he wanted to purchase something, he felt obligated to ask for permission since I was the sole provider, instead of just buying a new pair of shoes from our joint account,” Alford explains. The couple addressed this by giving each other prepaid debit cards loaded with $100 to $225 each month for discretionary spending.
4. Maintain open communication.
The fundamental principle of communication in relationships applies just as much to financial matters.
“Before we married, we decided on having a single bank account and shared financial principles,” explains Eric Rosenberg of Personal Profitability. “Don’t wait for an issue to talk about money. Make discussions about finances a regular occurrence, and always maintain transparency. That has been our secret to managing finances successfully on one income.”
