New Moms: Should You Work or Should You Stay?

Bloomberg recently shared that modern motherhood has economists worried, calling for a better balance between work and family life. This sparked quite a bit of debate in the forums regarding a woman's role, or particularly a mom's role, in a family.  For many career women, this is an intimately felt and potentially intense topic. How do we approach this with coolness? What are some of the considerations that we should make?

Following the birth of your child, you may feel that both you and your spouse need to work to meet household expenses and maintain your current lifestyle. However, you may discover that one of you can stay home without seriously affecting your net income. Though you would have to do without a second income, let's factor in what you'd save:

• Child-care costs: The cost per child for a day-care facility, nursery school, or nanny
• Commuting costs: Gasoline, wear and tear on your car, tolls, and parking
• Clothing: Work clothes and dry cleaning
• Restaurant and take-out food: Prepared dinners you purchase because you have no time to cook
• Lunches out: You have more time to prepare your own
• House cleaning and gardening: Hired help to clean the house and mow the lawn
• Taxes: With only one salary, you may move into a lower tax bracket

Now, what are the adverse effects of becoming a single-income household? The most obvious, of course, is a reduced family income. Let's also not forget what effect a leave of absence will have on the stay-at-home spouse's career and your family's retirement plans. You may both be at a point in your careers where you are earning high salaries. Leaving your job now may mean having to start over lower on the career ladder. And if one of you leaves work, you may miss the opportunity to fully fund your employer-sponsored retirement plan. Further, with only one income, you are more vulnerable in the event of an economic downturn. Finally, the stay-at-home spouse may lose the sense of accomplishment and community one gets from working outside the home.

You should balance all the issues, both pro and con. And remember, although it may make sense for both of you to continue working, some non-financial considerations, such as the opportunity to raise and supervise your child in your own home, may outweigh your financial concerns.

Part of this content is licensed from Broadbridge Financial Solutions, Inc.   The information presented here is not specific to any individual's personal circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.