The pandemic is forcing some working mothers to consider quitting their jobs as the burden of childcare duties still falls largely on women.
Some have already dropped out of the paid workforce to help their children with remote learning while many schools remain closed. But many others can’t afford to quit. Those weighing their options should consider the short- and long-term financial impacts of putting their careers on hold.
Here are some big issues to scrutinize if you are navigating this tricky choice:
What do I need to consider financially in the short term if I quit?
If you’re in a relationship, losing your income means you’ll likely become completely dependent on your partner’s income, says Rebecca Rooney, a financial adviser at UBS, a large Swiss-based bank.
If a couple has had separate bank accounts, the nonworking spouse should make sure that she now has a joint account with her partner so she stays involved with the family finances and can access their money, says Ms. Rooney in New York.
Keep some bills in your name to maintain your credit score.
If you have outstanding debt, such as student loans, figure out how that debt will be paid down.
Reduced earnings could mean a lower tax bracket for the family. The couple should speak with their accountant to check on any possible tax breaks, says Karen Altfest, a financial planner in New York.
How might resigning impact my overall financial picture three to five years from now?
Giving up work may put you at a disadvantage for promotions if you return to the workforce, says Avani Ramnani, a financial planner in New York. And leaving amid the pandemic may impact your earning potential down the road, she says.
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