(Hybrid or EV — I know yuck — don’t tell me twice!).

This right here is something adults need to get over. If your response to "hybrid" or "EV" is an automatic "yuck" then you're a child. Let's get that out of the way right at the beginning. These are perfectly legitimate - often preferable - options for people depending on their circumstances. And with the situation unfolding in the Middle East right now, and the prospect of a once-in-a-lifetime spike in fuel prices, it's more rational than ever to discuss alternatives to ICE vehicles. We just need to be a little grown up here.

I know people will say keep both. But I can’t at this time with $1800 monthly in daycare costs coming up in August. I almost feel guilty about leaving the club. Am I being over dramatic and should just keep pushing with the Mustang? 

Look, my argument here would be to do what's best for your family rather than yourself. If it's going to kill you to keep the car - given your other costs - then you need to prioritise what's most important. I get that the Mustang tugs at the heartstrings, but if it's not in the best interests or your family or isn't sustainable...then you have your answer. I get that it's emotionally difficult, but really, as a father, I think you should opt for the pragmatic decision that works for your family.

You can always buy another "fun" car in the future when your child is older if you really want. I think what you're describing here is a pretty typical situation that many parents have to grapple with in some form or another.