Financial Impact of Giving Up Work for Children
If you're new here, you may want to subscribe to my RSS feed. Want more frequent updates follow me on Twitter. Thanks for visiting!
photo credit: HAMED MASOUMI
Many new mothers dream of being able to give up work completely and devote their full attention to bringing up their children, especially in their pre-school years. However, as Girls Just Wanna Have Funds points out, many women are not completely aware of what a financial risk this step could be.
From a financial point of view, they suggest that you should, at a minimum, consider these issues while you are deciding whether or not to stay at home with your children for an extended period of time:
- Calculate how much impact not working will have on your retirement funds
- Consider how you will maintain work skills, knowledge and contacts for the time when you want to re-enter the workforce
- Calculate loss of income in terms of not only the loss of pay from not working, but the lower rate of pay you’ll most likely receive by taking a break (that is, if you’d stayed employed your salary would have probably increased more over the years)
- And, something nobody wants to think about - do you have an understanding (preferably in writing) with your husband about financial support in the event of a divorce
There are also considerations to be made about flexible or part-time work hours - if this is possible in your industry, it’s important to negotiate an appropriate package with your employer, especially in respect to benefits like health insurance.
Tags: children | Emplpyment | Financial Planning | Saving Money
This entry was posted on Tuesday, July 22nd, 2008 at 3:30 am and is filed under Financial Planning. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
