Balancing motherhood and a career is no easy task.
A survey from Pew Research Center found that one in five working parents says they’ve turned down a promotion in an attempt to balance work and parenthood — 23% of them were women. Balancing both can become so challenging that some mothers feel they can’t do both and do them well.
A 2023 survey from Moms First found 42% of new moms have contemplated leaving the workforce once they had children. It’s a difficult decision that could impact your livelihood. If you’re in this situation and are thinking about leaving your job, there are some financial considerations you’ll want to make first.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
1. Covering your health insurance.
A lot of companies provide health insurance as part of their benefits package. However, once the job is gone, so is the coverage. If you’re considering leaving the workforce and you’re currently getting health insurance through your employer, you’ll need to find other coverage. An extension of your benefits through COBRA will be an option, but that typically lasts only 18 to 36 months and can be pricey at 102% of the premium.
If you’re married and your spouse is eligible for benefits through their workplace, consider adding yourself and any dependents to their plan. This can be a better, more cost-effective alternative than seeking coverage on your own.
2. Saving for your retirement.
In addition to health care benefits, a lot of employers offer retirement plans. Ensuring you have enough money to sustain your retirement is imperative. A report from Northwestern Mutual found the typical worker believes they will need more than $1.4 million to retire comfortably.
If you’ve been contributing to an employer-sponsored retirement account, now is the time to take ownership of the account. Consider rolling the funds into a traditional IRA or Roth IRA, if you can remain in the same tax bracket. Doing this allows you to make contributions, up to a certain yearly limit, that fit into your budget, and you can still save without fear of breaking the bank.
3. Adjusting your family budget.
Transitioning from a two-income household to a single-income household will require some financial adjustments. Unless you have a hefty emergency savings fund, this transition will likely force you to make some adjustments to your budget. Write out all of your expenses so you can see exactly how much money you have coming in and going out. With one parent staying home, expenses for gas, business attire and meals will be less, but you may need to cut back on discretionary spending. Skipping vacations, reducing entertainment and canceling memberships or subscriptions can help put a little extra money back into your pocket.
4. Downsizing your lifestyle.
If cutting extra expenses isn’t enough, more cost-effective measures may be required. In some cases, downsizing to a more affordable home may be a great option.
Shopping around for less expensive options on cable, internet and cellphone service will help you lower your monthly expenses as well.
Obtaining car and home insurance quotes from various carriers may prove to save you even more, especially if they offer bundling discounts. You may also want to consider selling or trading a vehicle for one that will be paid for to eliminate a car payment.
When it comes to balancing a career and motherhood, the well-being of yourself and your family is the priority. If you decide leaving your job is what’s best for you and your family, try to not take on the dreaded mom guilt.
If you’re concerned about financial stability, there are employment options out there that offer remote work, part-time work or more flexibility that will fit with what you are trying to create for your family as a mother. This could help supplement your income, while allowing you to be as present as you can be for your family.
Related Content
- Three Steps for Women to Take Control of Their Finances
- Four Tips to Get Your Financial Wellness in Shape
- How to Build Your Financial House From the Foundation Up
- Tips to Help Single Women Struggling to Save for Retirement
- Women and Money: Three Ways to Plan for the Future as Life Happens
-
4 Money Habits Boomers Swore By That Millennials Are Walking Away FromMillennials are trading tradition for flexibility when it comes to building wealth.
-
Abu Dhabi Adventures: New Thrills, Iconic Sights and Disney’s Latest ParkDiscover the mix of culture, wildlife and modern marvels that make this Middle Eastern city a destination to watch.
-
How Much Do I Need to Retire? A Financial Professional Breaks Down Your OptionsWhat it all boils down to is will you be comfortable in retirement? Some people may rely on formulas, while others just aim for $1 million nest egg.
-
Despite Our Grumbles, America Still Delivers on the Dream: Perspective From a Financial Pro Who's Seen StuffSome of us might complain about the state of our nation (and those concerns are legit), but America still offers unparalleled opportunities and mobility that many people around the world only dream about.
-
When You Need Capital Quickly, Think 'Ready, Set, Fund': A Financial Adviser's StrategyInvestors must be able to free up cash to meet short-term needs from time to time. This strategy will help you access capital without derailing your long-term goals.
-
I'm an Estate Planner: Moving Family Assets to a Safe Haven Abroad Could Be a Huge Headache for Your HeirsIn troubled times like these, wealthy clients may seek financial refuge outside of the U.S. But that could cause more tax and estate problems than it solves.
-
Fall Is Tax Time? Yes! Act Now to Make Needed AdjustmentsReview your withholdings, contribute to tax-saving HSA and FSA accounts, manage a bonus' impact and adjust for major life events such as weddings and job changes.
-
Board Service in Retirement: The Best Time to Join a Board Is Before You RetireMany senior executives wait until retirement to take a seat on a corporate board. But making this career move early is a win-win for you and your current organization.
-
A Financial Professional's Take on Long-Term Care Insurance: Buy or Not?Unless you have about $6,000 burning a hole in your pocket every month, you should make a plan in case you need long-term care. Luckily, you have options.
-
How to Unearth Sustainable Investment in Mining: A Financial Professional's GuideMining is likely to play a critical role in the global transition to more environmentally friendly energy resources. Here's how you can balance the opportunities and the risks.
