Why Single-Income Households Are a Bygone Era

Bankrate economist Sarah Foster told CNBC that the days of buying a home and car on one paycheck are gone. In two-parent families, both adults now work outside the home, often out of need. Bureau of Labor Statistics data from 2024 shows both spouses employed in half of married-couple families, rising to two-thirds when kids are involved.

Costs Have Outpaced Wages

Child care, health care, college, housing, and auto loans keep climbing. Family health insurance premiums rose over 25% since 2020, beating inflation, per CNBC. Child care and college tuition went up more than 5% each year in that time, according to research cited there. A housing shortage drives rents and mortgages higher. Fortune says you’re probably $30,000 short of what you need to buy a house. Bankrate says Americans need to set aside 43% of their income for a home.

SmartAsset crunched MIT Living Wage Calculator numbers as of February 2025 to show what one earner needs for a stay-at-home parent and one child. Top states:

Hawaii: $102,773
California: $97,656
Massachusetts: $97,261
New York: $92,290
Connecticut: $90,542

Lowest: West Virginia at $68,099, per LiveNOW from FOX. Dual earners covering child care need more in some spots, like $124,842 combined in Massachusetts or $119,226 in Hawaii (details from FOX 5 DC). LendingTree pegs total child-rearing costs at $297,674 over 18 years, up 25%, with day care alone jumping 51.8% since 2023 to $17,836 yearly.

Jobs Lack Old Stability

Bankrate’s Mark Hamrick pointed to gig work’s rise for CNBC: less predictable pay, fewer benefits, no pensions. Full-timers fund their own retirement now. Economic Policy Institute’s Elise Gould said families work more hours just to keep up.

Women Drive the Change

Gender barriers fell, giving women better education and jobs. They work as much or more than men, per studies in the CNBC piece. Pew Research Center notes women outearn husbands in more opposite-sex marriages. American Enterprise Institute’s Scott Winship said this raises what counts as middle-class living.

Not Always the Golden Past

The Washington Examiner calls nostalgia for factory workers supporting big families on one income a myth. Social media memes ignore past economic limits.

Single-income setups risk disaster from one job loss and harder savings, SmartAsset’s Jaclyn DeJohn told FOX outlets. Dual incomes buy security but cut family time. Parents weigh resume gaps against child influence.