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I'd say part-time work for your wife if possible. If you wait too long, you start to rely on that person home and it's kind of hard to break back into working. (I'm in this situation).
However, with only one income, it's rough to have money for extras. We have not had a second car in 12 years and I am the one (along with my son who cannot do extra activities or anything in summer) suffering.
I am glad I was there for him as a stay home mom but I also feel I have sacrificed so much. I am basically housebound and my confidence is not very good these days, even with moving to a new place.
I'm very well educated and find 'staying home' now he is in school full time a drag but again, daycare and babysitters cost too much.
We're going to try working separate shifts now so someone will be home for our son and so I can work again.
I wish I could have stayed home, but I'm a single parent. I was able to stay home with my son until he was a year old. I used to cry every day when I took him to daycare.
On the other hand, I remember my mom being there when we got home from school. She baked cookies with us, did crafts with us, made sure we got on the schoolbus in the morning. She went back to work when I was 14.
I don't remember being poor, although my parents say they had little money at the time. You will find a way to pay for college.