tzippi, there are very few people who cannot cut down expenses. There is no need to eat expensive chicken/meat/fish. You can get good protein/nutrients from much cheaper sources (like beans). That saves a lot of money.
I find the internet saves me enough in coupons that it pays. It all depends on the family. My cable on the other hand is a luxury, but I can still pay my bills.
Also, its not just about stopping to buy – you can SELL your previous jewelry and other things amongst the house.
Some stay at home moms should consider getting jobs – perhaps pairing up with another SAHM and split the take home of the job. I know many people say daycare is too expensive and doesnt pay to work, but if one person works and the other watches the kids and they split the paycheck, everyone wins. Or swap babysitting – you get a job on Monday and Wednesday and they get a job on Tuesday and Thursday and neither pay for babysitting but are able to bring in more money.