In many cases, the second income adds only $0-$15,000 after all costs. If the value of staying home (childcare quality, stress reduction, schedule flexibility) exceeds this amount, one income makes financial sense.
One-Income Budget: Family of Four
Income of $70,000 (Gross)
Item
Monthly
Annual
Gross income
$5,833
$70,000
Income tax + CPP + EI
-$1,250
-$15,000
Net income
$4,583
$55,000
Canada Child Benefit (2 kids, ~$5+$6)
+$950
+$11,400
GST/HST credit
+$55
+$660
Total available
$5,588
$67,060
Budget Breakdown
Category
Monthly
% of Available
Housing (mortgage/rent)
$1,500
27%
Groceries
$700
13%
Transportation (1 car)
$450
8%
Utilities
$250
4%
Insurance (home + auto)
$250
4%
Children’s activities
$150
3%
Clothing
$100
2%
Personal/household
$150
3%
Phone + internet
$120
2%
Entertainment
$100
2%
Savings (TFSA/RRSP)
$500
9%
Emergency fund
$200
4%
Miscellaneous/buffer
$118
2%
Total
$4,588
82%
Surplus
$1,000
18%
Government Benefits That Help
Benefit
Annual Amount (Family of 4, $70K income)
Canada Child Benefit
$8,000-$12,000 (2 children)
GST/HST credit
$600-$900
Climate Action Incentive
$800-$1,500 (province dependent)
Provincial child benefit (Ontario, BC, etc.)
$500-$2,000
Spousal tax credit
~$2,300 tax savings
Total government support
$12,000-$19,000
Canada Child Benefit by Income
Family Net Income
CCB per Child Under 6
CCB per Child 6-17
Under $36,502
$7,787/year ($649/mo)
$6,570/year ($547/mo)
$50,000
~$6,800/year
~$5,700/year
$70,000
~$5,500/year
~$4,500/year
$100,000
~$3,800/year
~$3,000/year
$150,000
~$1,500/year
~$1,000/year
Lower household income = higher CCB. Single-income families often receive significantly more CCB than dual-income families at the same gross household income.
Tax Advantages of Single-Income Families
Advantage
Savings
Spousal amount credit
~$2,300/year tax savings
Higher CCB (lower family net income)
$2,000-$6,000 more than dual income
Higher GST/HST credit
$200-$400 more
Spousal RRSP contributions
Income splitting in retirement
One car instead of two
$3,000-$8,000/year savings
No childcare expenses
$6,000-$24,000/year savings
Spousal RRSP Strategy
Year
Contribution to Spousal RRSP
Tax Savings Now
Retirement Benefit
Annually
$5,000-$15,000
$1,500-$6,000 (at 30-40% rate)
Income splitting in retirement
Over 20 years
$100,000-$300,000 + growth
$30,000-$120,000 total
Both spouses withdraw at lower rates
Cost Cutting Strategies for One-Income Families
Housing (Biggest Impact)
Strategy
Monthly Savings
Buy a smaller home / townhouse
$300-$800
Live in a lower-cost city
$500-$1,500
Refinance to lower rate
$100-$300
Get a roommate/basement tenant
$600-$1,200
Pay off mortgage aggressively
Saves $200K+ in interest over time
Transportation
Strategy
Monthly Savings
Be a one-car family
$400-$700
Buy used instead of new
$200-$400
Drive a fuel-efficient vehicle
$50-$150
Use transit for commute
$200-$400
Food
Strategy
Monthly Savings
Meal planning and batch cooking
$100-$200
Buy store brand
$40-$80
Shop sales and use Flipp/coupons
$50-$100
Grow a basic vegetable garden
$30-$60 (seasonal)
Reduce food waste
$50-$100
Cook from scratch (no prepared meals)
$100-$200
Children’s Costs
Strategy
Monthly Savings
Buy/sell kids’ clothes secondhand
$30-$60
Use library for books and activities
$20-$40
Choose free community programs
$50-$200
Limit paid extracurriculars to 1-2
$50-$200
Income Thresholds by City for One Income
City
Minimum One Income (Family of 4)
Comfortable One Income
Toronto
$80,000-$100,000
$100,000-$130,000
Vancouver
$80,000-$100,000
$100,000-$130,000
Ottawa
$65,000-$80,000
$80,000-$100,000
Calgary
$65,000-$80,000
$80,000-$100,000
Edmonton
$60,000-$75,000
$75,000-$95,000
Montreal
$55,000-$70,000
$70,000-$90,000
Winnipeg
$55,000-$65,000
$65,000-$85,000
Halifax
$55,000-$65,000
$65,000-$85,000
Saskatoon
$55,000-$65,000
$65,000-$85,000
London ON
$55,000-$65,000
$65,000-$80,000
These assume a paid-off or affordable mortgage/rent situation. Higher housing costs require higher income.
The Stay-at-Home Spouse’s Financial Checklist
Item
Why It Matters
☐ Open own TFSA
Build personal savings, tax-free
☐ Spousal RRSP contributions
Build retirement income in your name
☐ Life insurance on working spouse
Essential — protect against income loss
☐ Disability insurance on working spouse
Usually through employer, verify coverage
☐ Emergency fund (6 months)
Especially critical with one income
☐ Will and POA updated
Protect family
☐ Maintain employable skills
In case you need/want to return to work
☐ Understand household finances fully
Both spouses should know all accounts, debts, insurance
When to Return to Work
Trigger
Action
Kids in school full-time
Re-enter with part-time, build to full-time
Financial pressure
Part-time work even $15K-$25K/year helps significantly
Skills atrophy concern
Volunteer, freelance, or take courses to stay current