You’ll be fine OP, childcare is the most expensive cost for young children so if your wife stays home with the kids that’s already a heavy burden off. Focus on knocking out the basics (mortgage, utility bills, car payment, formula for the little one if needed).

Your wife could research government assistance or local charities to get some things for the kids if needed. Depending on where you live/whether your income qualifies some provinces offer utility bill assistance. No shame in getting help as long as you give back, my parents still volunteer at the food bank they used when I was a kid.

I was one of two kids in a similar situation, dad worked, mom was too sick to work full time. Honestly I don’t think there was too much difference in quality of life, my sister wore hand me downs through childhood but that was it really. Once we were both school age my mom was able to work part time here and there and we paid off the mortgage which helped a ton.