I responded to your previous request with my experience as a SAHM (I really enjoy it and feel like this is best for my children's well-being in my situation) so now I'll share my experience as a child of a SAHM. Not only was my mom home, she was also a very effective parent and very involved. She gave us TONS of love and nurture, and also put forth the energy to consistently enforce the few limits she set and taught us how to work hard by insisting that each of contribute to the household. I feel like I had such a wonderful, secure childhood as a result. You can be an effective parent whether or not you work, so I'm sure my fabulous relationship with her had as much to do with her parenting style as it had to do with her staying home with us. Anyways, each of us 4 children felt close to her and have a very warm relationship with her. Even as teenagers we weren't very rebellious and I shared almost everything with her, as did my siblings.
You can't have it all, which is something I'm having to come to terms with, because I would love to make a difference in this world with some other skills I have, and I'm realizing it is going to be a struggle of finding balance. I can't be fully devoted to my own business as well as devoted to my family at the same time. And it is so completely personal. I think kids benefit from having a parent as a primary caregiver, but kids also benefit from having food on their plate :) If you can have both, that's awesome. I think it's largely up to you and what you're willing and comfortable to live with (or without). And you don't have to live from paycheck to paycheck. I'm sharing from personal experience that it isn't how much money a person makes, but how they manage it that matters.
As far as providing for their college education, my parents could not do that (they struggled financially, but they both admit that it had as much to do with their poor money management as it had to do with their limited income and they've made great improvements in that area I am proud to say). I still went to college and it didn't hurt me one bit to have to figure it out on my own. In fact, I find a great deal of satisfaction in the fact that I was successful in this endeavor. I had to put forth a lot of effort and apply for scholarships and keep my grades up and do honors projects (all of which resulted in character development), and I was able to get my whole college education paid for through scholarships. I knew I didn't have parents to fall back on financially and so I learned to scrimp and save and work hard so that I could graduate debt-free. My parents offered what they could, which was allowing me to drive a car and live and eat at their house for free while I was in school, and that certainly helped a lot even though they couldn't pay for college itself.
I will be honest that once I became older, the financial struggles concerned and frustrated me, but as a child all I remember was that mom was always around. And my mom did get a job once we were teenagers. It was fun to be able to have nice Christmases and go on family vacation after that, but she also was much more stressed so I'm not quite sure it was worth it.
The bottom line is, I'm very happy with my childhood with a devoted mother at home, financial struggles and all. But I really think whether or not we struggle is up to us and they could have been more responsible with the money they had. I'm extremely grateful that in spite of their money issues, they had the whole parenting thing figured out quite nicely.