Almost 9 in 10 underestimate the financial value of stay-at-home parents.
Research by Royal London Ireland has revealed that the estimated annual cost of hiring someone to perform the responsibilities of a stay-at-home parent is €57,140 , significantly higher than the €32,340 average estimate provided by survey respondents. This gap highlights how often the economic contribution of stay-at-home parents goes underappreciated.
Key findings from the survey include:
- 89% of adults in Ireland undervalue the financial worth of a stay-at-home parent’s role.
- On average, respondents underestimated the cost by €25,000 per year.
- Women were three times more likely than men to correctly estimate the role’s true financial value.
Growing Recognition, But Gaps Persist
The survey results showed that only 11% of the 1,000 adults surveyed believed the value of a stay-at-home parent’s role would exceed €50,000 annually. In reality, Royal London Ireland’s research places the true figure at €57,140 , an increase from €54,590 in 2023 and €40,560 in 2015 when the survey was first conducted.
Interestingly, respondents aged 45 to 54 , many of whom likely have firsthand experience raising children , were the most accurate in their valuations. However, there remains a significant perception gap, as many respondents continue to undervalue the diverse responsibilities stay-at-home parents manage daily.
Responsibilities of a Stay-at-Home Parent
Stay-at-home parents take on a wide variety of duties that include childcare, cooking, cleaning, household management, transportation, budgeting, and emotional support. To calculate the value of these tasks, Royal London Ireland used current wage data, revealing that employing someone to handle such responsibilities would cost a household over €57,000 annually.
Regional and Gender Differences
The survey also highlighted regional and gender disparities:
- 29% of respondents believed the role’s value ranged from €20,000 to €30,000.
- Women were significantly more likely than men to estimate the cost as over €50,000 (16% vs. 6%).
- Munster residents placed the highest value on stay-at-home parenting, with 28% estimating a salary above €40,000.
Why Financial Planning for Stay-at-Home Parents Matters
The unpaid labour performed by stay-at-home parents, the majority of whom are women (90% according to Census 2022 data), is rarely accounted for in household financial plans. This oversight can leave families vulnerable if a parent is unable to continue in their role due to unforeseen circumstances.
Key takeaway: Adequate financial protection, such as Life Cover, Multi-Claim Protection Cover, or Specified Serious Illness Cover, can provide a safety net to support families in times of need.
Close the Gap with Smart Financial Planning
The role of a stay-at-home parent is not just an emotional cornerstone of the family , it also represents a significant economic contribution that deserves recognition and protection. Proper financial planning ensures families are equipped to handle unexpected challenges, helping to preserve their stability and well-being.
Contact Riordan Financial to learn how you can secure the right financial safety net for your family.