The Financial Reality of the One-Income Family in America
In today’s America, the traditional family model featuring a stay-at-home parent remains a constant presence in about one-fifth of households, according to Pew Research Center data. This figure has remained remarkably stable over the past forty years, despite significant economic and social changes. While many parents dream of having the opportunity to step away from their careers to focus on raising their children during those precious early years, the economic reality often proves to be a stubborn barrier. The dream of having one parent at home with the children remains just that—a dream—for many families caught in the vice of modern financial pressures. However, a revealing new study from Smart Asset has brought clarity to this situation by calculating the exact income thresholds needed across different states to make the one-income family model viable in today’s economy.
The regional differences in these income requirements are striking and reflect the vastly different costs of living across our diverse nation. Take New York, for example, where a single working parent needs to earn at least $92,290 before taxes to adequately support themselves, their stay-at-home partner, and one child. This figure represents a state average, meaning that families in New York City and its expensive surrounding suburbs would need significantly more to maintain a comfortable lifestyle. This steep financial requirement places the stay-at-home parent arrangement out of reach for many middle-class New York families, forcing difficult choices between career aspirations and family life. The financial strain becomes especially apparent when we consider that this figure only accounts for one child, with each additional child pushing the required income even higher.
Even more challenging financial landscapes exist in three other states, where the required earnings exceed New York’s already substantial threshold. Hawaii tops the list, with working parents needing to earn a staggering $102,773 annually to support a family with one stay-at-home parent and a child. This figure reflects Hawaii’s notorious cost of living, driven by its island geography and tourism-dominated economy. California follows closely behind at $97,656, a reflection of its high housing costs, especially in coastal metropolitan areas where many job opportunities are concentrated. Massachusetts rounds out the top tier with a required income of $97,261, illustrating how the Boston metropolitan area and other high-cost regions drive up the financial requirements for single-income families throughout the state. These figures paint a sobering picture of the economic challenges facing families in these high-cost states who wish to have a parent at home.
On the other end of the spectrum, several states offer more financially accessible paths to the single-income family model. West Virginia presents the lowest threshold nationwide, with working parents needing $68,099 to support a family of three, including a stay-at-home partner. Arkansas follows closely behind at $68,141, while Mississippi requires $70,242. The nearly $35,000 difference between Hawaii’s requirements and those in West Virginia illustrates the dramatic economic disparity across different regions of the country. These lower thresholds in predominantly rural and Southern states reflect lower housing costs, reduced transportation expenses, and generally lower costs for essentials like food and utilities. However, these states often present their own challenges, including fewer high-paying job opportunities that would allow families to reach even these lower income requirements.
The Smart Asset study provides valuable perspective for families wrestling with the complex decision of whether one parent should leave the workforce to care for children. Beyond the emotional and developmental considerations, the stark financial realities outlined in this research offer a clear-eyed view of what’s economically feasible. For many families, these figures may confirm what they’ve already experienced: that despite their desires, the mathematics of modern family economics simply doesn’t support a single-income household in their particular location. For others, particularly those with higher-earning careers or those willing to relocate to lower-cost regions, the study might provide the confidence that their financial plan for a stay-at-home parent arrangement is indeed viable. The complete state-by-state breakdown offers families across the country a personalized roadmap to understand exactly what income threshold they would need to meet to make their family structure of choice economically sustainable.
This data arrives at a particularly poignant moment in American family life, as the post-pandemic era has prompted many to reconsider their work-life balance priorities. The temporary experience of working from home allowed many parents a glimpse of greater involvement in their children’s daily lives, igniting or reinforcing desires to prioritize family time. Yet as these figures demonstrate, the economic framework of American society still presents significant barriers to families seeking alternatives to the dual-income model that has become the default for middle-class households. These financial requirements raise important questions about how we structure work, compensation, and family support in our society, and whether policy changes—from expanded child tax credits to more flexible work arrangements—might create more options for families to organize their lives according to their values and preferences rather than purely economic necessities. Until then, families will continue navigating these financial realities, making difficult choices based on both their bank accounts and their aspirations for family life.
