BMO Financial Group

BMO Financial Group
BMO Bank of Montreal

BMO Bank of Montreal

June 14, 2012 09:13 ET

BMO Father's Day Study: More Dads Staying at Home with the Kids

- Number of stay-at-home dads has tripled in the past 30 years

- More than half of Canadians say their family would have to spend less on cars, travel and luxury items if one parent decided to stay home and take care of the kids; 49 per cent feel their cash flow would be significantly impacted

- BMO provides tips for families living on a single income

TORONTO, ONTARIO--(Marketwire - June 14, 2012) - The number of stay-at-home Dads has tripled in the past 30 years, marking a new era of parenthood as Father's Day approaches.*

Research indicates that the rise in stay-at-home Dads can be attributed to the following factors:

  • The loss of jobs among men as a result of the recession and financial downturn
  • The increasing number of women who are earning more than their partners
  • Increased equality in gender roles
  • The rising cost of childcare

According to a BMO study:

  • More than half (52 per cent) of Canadians say their family would have to spend less on things like cars, travel, and luxury items if they decided to have one parent stay home and take care of the kids.
  • Close to half (49 per cent) feel their cash flow would be significantly impacted.

"Regardless of whether Dad or Mom stays at home, single income families face unique challenges that require financial adjustments," said Tina Di Vito, Head of the BMO Retirement Institute. "Adjusting lifestyle and budgets can be intimidating, but making short- and long-term plans can certainly ease in the transition. Surviving comfortably on one income can be done if finances are considered a priority."

BMO offers the following tips for single-income families:

Reduce expenses: Adjusting and often reducing your expenses can play a huge role in increasing your savings. By making a grocery and meal plan every month, eliminating restaurant visits and cutting down on cell phone/cable expenses, you can really cut down on costs.

Ease into one income: If you have decided to live on one income prior to the birth of a child, start preparing early by cutting back on expenses. This way, you can build some savings while you are still earning a salary.

Implement a budget: Start tracking everything you spend and create a detailed budget that will help you monitor your income and expenses. It may seem tedious at first, but it will give you a clear idea of how you are spending your money.

Put off purchasing luxury items: The more money you are able to save by avoiding unnecessary items, the easier it will be to live on one income. Be sure to weigh the pros and cons of tempting items before deciding to purchase them.

*Source: Statistics Canada

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