I can't speak for how everyone else does it, but here's how our young-children years worked out:
Both of us have always worked, and given the same set of circumstances, I'd make the same choice again. It's been financially worthwhile, and we've raised great kids. When the kids were small, everything worked out well -- EXCEPT when my husband went out of town. At those times, and we're talking 2-3 days every 6-8 weeks, life was miserable for me. Our life wasn't "arranged" to be run by one adult.
From birth 'til the first started school, my husband was the "morning parent" because he didn't have to be at work until 8:30. I'd lay out the kids' clothes and diaper bags the night before, and my husband would get the kids up, feed and dress them, and take them to day care. Even now they talk about the little games they played during those times -- games that didn't include me, but that was their special time.
At that same time, I was always the afternoon parent. Since I'm a teacher, I'm off mid-afternoon. I'd do any necessary shopping QUICKLY before picking up the kids (because it takes about 25% as much time to shop alone than to shop with small children), and I'd pick them up from day care. That was our special time. We'd talk about their day, do any homework they had, and we'd make dinner together.
We always made a big deal of bedtime. They had their baths, then stories and songs -- it was a big bonding time for us.
We "fell into" good day care at every turn -- I mean, unbelievably good situations. For example, we'd arranged for our new baby to attend the same day care as her then two-year old sister . . . and then the day care decided to discontinue their newborn program. I came home crying, fearful that I'd have to quit my job, not sure what to do. The very next week, my favorite day care provider in my daughter's two-year old room told me quietly that she was going to start an at-home day care -- would I like to reserve a spot. Uh, yes. A few years later, when we'd decided it was time to leave her, I was sad about telling her we were going to be ending our tenure with her . . . but before I could broach the subject, she told me she was moving out of the area. We always had good day care situations.
When it was time for our oldest to start school, we decided to go with a Christian school -- in part because we could put the oldest in to kindergarten . . . and have the youngest in day care in the same building. It meant one drop off /one pick up each day, and that made a mountain of difference in our lives at that point.
I should note that we lived some distance away from our workplaces at that point, and that was one of the biggest problems in our lives. We spent entirely too much time on the road at that point, and that did impact the quality of our lives. We loved where we lived, but our jobs, our day care, our doctors, all our shopping -- everything was at least 30 minutes away. That's the biggest reason we moved instead of adding on to our first house.
Once we moved over to public school, we used the school's before-school care /after school care, which was outrageously expensive given that they were in the care only about 15 minutes before school started and only about 30 minutes after school ended. We had to pay for care until 6:30, even thought the kids were picked up around 3:00.
In closing, the years when you have to shuttle them here and there for day care were, in our experience, the hardest. You have to do that AND have time to really connect with them at home. That's going to be hard to do if you're working 'til 6:30 every night -- oh, you can do it occasionally, but each and every day . . . something's gotta give.
Teenagers, on the other hand are EASY. Easy, that is, if you do a good job with the kids when they're young. I wouldn't want to have to live with some of my students, but my own girls are genuinely wonderful young ladies. In retrospect, it's like I took these two babies and made them into the two best friends I could ever have. I can't imagine not having them.