The Motherhood Penalty Is Costing Working Moms $20,000 A Year As Of 2024
Here's how you can challenge it
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📰 Interesting financial news: Stay up to date on what’s happening in the economy.
📈 What’s popping in the stock market: The 411 on trending/interesting stock market news.
📝 This week’s main topic: What this newsletter’s title is about!
🥰 Team CGF’s Amazon favs: Affordable yet helpful Amazon finds.
📰 Interesting financial news
Federal student loan borrowers in default may again face wage garnishments, collections. (CNBC)
401K plan changes coming in 2025 making it easier to save for retirement. (NBC News)
CEO turnover reaches record levels in 2024 as 'increasing complexity' drives execs to the exits. (Yahoo Finance)
Macy’s found a single employee hid up to $154 million worth of expenses. (CNN)
📈 What’s popping in the stock market
Tyson Foods to close Kansas meat plant, cutting more than 800 jobs. (Ticker Symbol: TSN)
Intel CEO resigns after a disastrous tenure. (Ticker Symbol: INTC)
What emotion is driving the stock market today? Check out CNN’s fear and greed index.
📝 Main topic: The motherhood penalty, your career and what you can do
Motherhood is beautiful and costly. According to the Pew Research Center, many mothers tend to have reduced work hours due to childcare responsibilities.
And a separate Pew study showed that 26% of mothers are stay-at-home parents, and only 7% are fathers.
These changes in working hours cost mothers an average of $20,000 a year in lost wages as of 2024.
The burden is even more challenging since Census data by the National Women’s Law Center show that working moms make only 71 cents for every dollar working fathers are paid.
Paid parental leave is a luxury not available to everyone
Mothers are also more likely to stop working due to having a child, get paid lower wages, and often take on more household responsibilities when they return to the workforce.
Even when mothers are family breadwinners, they are still no exception to the wage and responsibilities gap.
While the Family Medical Leave Act (FMLA) guarantees 12 weeks of unpaid leave for new parents, many mothers sometimes stay home with their children longer due to childcare needs.
How to advocate for yourself when taking parental leave
That said, and even though there’s an earning gap, here are some steps you can take to challenge the system as a working mom:
1. Advocate for paid parental leave
Look into your company’s policy on parental leave to see if you are eligible for coverage. Depending on your employer, you may be eligible for 12 weeks of unpaid leave through the Family Medical Leave Act. Under this act, it’s possible to use your vacation or sick time to cover part of your parental leave.
If your company doesn’t have a policy, you can start having a conversation with your boss about the possibilities. During this discussion, it can be helpful to point out that many other U.S. states have paid leave policies. These policies encourage mothers to stay with their companies and return to their jobs after maternity leave.
2. Negotiate flexible work arrangements
You may need time to ease back into the routine whenever you decide to return to work. If this is the case, you can negotiate a flexible work schedule. This could look like:
Asking to work remotely
Adjusting your work hours
Reducing responsibilities at work
Adjusting your work schedule allows you to earn a salary while still making time to care for your children.
3. Keep up with your professional development
A big concern about taking time off as a working mom is not keeping up with the industry and softening your skills. Use your time off to keep your skills sharp by reading up on industry trends, learning essential skills, and attending webinars.
Staying educated will help your transition back to work that much smoother and help you maintain a competitive edge.
4. Seek employer-sponsored childcare if available
Sometimes, it’s possible to have employer-sponsored childcare when your employer partially or fully covers the cost of childcare. These types of benefits can take the following forms:
Subsidies to help you pay for childcare
Directly paying childcare facilities
Resource and discounts for college planning and tutoring
Help in finding childcare provides
Employer sponsored childcare can help relieve some of the financial burden of childcare and is worth exploring.
5. Rely on mentorship to guide you
Mentorships are crucial to career growth and can also serve as vehicles to help you return to the workforce. Likewise, a mentor can help advocate for you in your absence, keep you up to date with what is happening in the company, and help you combat any biases of a working mom.
So start thinking of and connecting with other individuals that could act as mentors to you.
6. Make a plan for your return
Coming back to work can be a difficult transition. You might feel guilt and worry. It can feel like you’re caught between two worlds. Here is what you can do to ease the transition back:
Talk with your boss
Talk with your managers or boss before coming back to understand the work environment. It’s also helpful to discuss any expectations they have or changes in your role.
Set boundaries
This is important if your work schedule or hours have changed. Make sure everyone is clear on your new responsibilities.
Connect with colleagues and other parents
Connecting with people who understand your different roles can help you readjust to being an employee and a mother. They can also provide you with a good support system.
7. Create a strong personal brand
Building a personal brand may be something you haven’t thought of before, but it can benefit you. Chances are you’ve already established yourself as a top-performing, leading expert or go-to person.
Building upon your personal brand through networking, posting on LinkedIn, writing articles, or speaking engagements can help you solidify your work image and open doors for future opportunities.
8. Advocate for gender-neutral policies
Many companies are implementing gender-neutral policies to support workers from all backgrounds.
Advocating for gender-neutral policies benefits working mothers because it fosters fairness, inclusivity, and equality in the workplace.
These policies, such as shared parental leave, flexible work arrangements, and non-discriminatory practices, help normalize shared caregiving responsibilities, reducing the burden often placed on mothers and supports families as a whole.
By challenging traditional gender roles and promoting equal opportunities for career advancement, these policies create a supportive environment where you as a working mother can feel valued and respected.
9. Leverage technology
Thanks to technology, you can engage with your work industry while on parental leave. Consider connecting with industry professionals on LinkedIn. You can also join different Slack channels to connect with people in similar roles and careers.
10. Address the bias head-on
We don’t live in a perfect world, so there is a chance you’ll face some bias when returning to work. Feeling upset, frustrated, or sad about these biases is okay. It’s also okay to respectfully address these biases by asking for clarification, getting feedback, and highlighting your achievements.
Remember, it’s not easy balancing both work and motherhood. Don’t let anyone make you feel anything other than proud.
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If you need support planning your finances for this new season, you can work with one of our financial coaches to help you get a strong start.
🥰 Team CGF’s Amazon Favs
Electronics are basically toys for adults and if you’re a tech fan, here are some items you’ll love to add to your collection!
P.S. If you make a purchase we may earn a commission, this helps us grow!
JBL Tune 510BT - Bluetooth headphones
Airpods are nice, but nothing beats a full headset where you can get quality sound without worrying about an earbud falling out of your ear.
JBL delivers its signature pure bass sound through these wireless Bluetooth headphones. Immerse yourself in up to 40 hours of quality sound and drown out the world.
These headphones are great for listening to music and making hands-free calls.
Oura Gen3 Sleep Tracking Ring
Falling asleep with a giant ring on your hand may seem awkward, but it can be your key to better-quality sleep. This Oura ring allows you to track your sleep, heart rate, and stress levels.
It is a durable titanium device that is surprisingly lightweight and easy to sleep with. Its waterproof feature allows you to wear it while working out a complete health tracking.
Shiatsu Back Shoulder and Neck Massager
As you read this, you’re probably rubbing your neck, trying to relieve some tension. You’ve now realized that your shoulders are scrunched up to your ears and you feel as tense as the Tin Man.
You know you need a massage but don’t have time for one, and it’s not quite within your budget.
Fortunately, you don’t have to walk around feeling like your body hates you. Instead, you can get daily massages with the Shiatsu electronic neck massager! Enter bliss every day with eight kneading nodes, infrared heating, and adjustable speeds and controls.
JBL FLIP 5, Waterproof Portable Bluetooth Speaker
Portable speakers are the perfect companion for any music lover. Whether you're at a holiday event, having a picnic, or just cleaning up at home, you can use this JBL speaker to throw on some tunes and liven up dull plans.
Listen to a crisp sound for 12 hours of playtime. If you’re still listening to music on a low-quality speaker or just blasting tunes from your phone, then now’s your time to upgrade.
Digital Photo Frame
Single photo frames are a thing of the past. Why limit the memories you can share when you can showcase more of your precious memories?
This digital frame lets you share photos and videos using WiFi and a phone app.
And don’t worry if you’re not a fan of WiFi and apps. You can easily transfer photos from the frame to an SD card, USB drive, or computer.
Make your memories come to life by showcasing up to 50,000 photos on this digital frame!