What is the cost of motherhood? The motherhood penalty shows it may be higher than you think. A new Bankrate study found that mothers could potentially miss out on half a million in career earnings based on 2023 wage gap data. This is compared to fathers who actually appear to experience a wage bonus over time after having children. In 2023, Mothers with children under 18 earned a median salary of $55,276, while fathers with children under 18 earned $72,280. This was the largest wage gap of all the groups included in our analysis. “The gender pay gap and motherhood penalty are systemic issues that affect women’s finances. While individuals can’t resolve these challenges alone, women can navigate them by focusing on what they can control,” says Bankrate’s Alex Gailey. She notes establishing a support system, tracking spending, automating savings and advocating for better pay and benefits as ways to help. For more information, please visit: https://lnkd.in/eCwA8fec
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Helping Ambitious Women Create a Financial Roadmap to Build Generational Wealth | Create More Time Freedom by Outsourcing Your Financial Strategy | Financial Advisor | Speaker
Did you know that women suffer financially when they become mothers but men are financially rewarded when they become fathers? The time and financial disparity between working moms and working dads is shocking, but not surprising. Enter the Motherhood Penalty and the Fatherhood Premium…. The motherhood penalty comes from the patriarchal notion that assumes mothers are primary caregivers and that if they still choose to work, they are less committed to their jobs or children. This penalty is demonstrated through lower pay on top of the gender pay gap, less promotions, and difficulty getting hired. Meanwhile, working fathers experience the opposite. Research has shown that working fathers receive higher pay and are seen as more dependable. Let’s take a look at some stats: ❌ Women in the US spend 37% more time doing unpaid care. Think chores around the house, picking kids up from school, etc. ❌ Employed moms experience a per child wage penalty is 5 to 20% ❌ Employed dads experience a per child wage increase of 6% I’m 💀😭😢🤬 While I don’t have the solution on how to solve this gap, here is what I do know: 💰More women need to negotiate for higher pay, invest and have a financial plan. Women are earning less money while living longer than men which makes investing an absolute necessity so you can pursue financial freedom and not have to work until you’re 80s. If you want to feel confident and excited about your future because you have a clear roadmap in place, schedule a free discovery meeting using the link in my bio.
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Wow, the wage gap increases with just simply having a kid! Even after only a year of being a parent, I see how freaking hard it is to balance and have a kid. I'm so lucky to have an amazing partner to balance the household (he's the reason our household isn't a continuous mess!), but I can't imagine single moms, or even the mothers who don't have partners that help out as much as a parent should. It takes so much strength. https://lnkd.in/g_FBAUUg How can we start igniting change for Kansas City to start? How can we accelerate growth?? #MomWageGap #WomenDeserveBetter #LetsDiscuss
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Happy #FailureFriday. For too long, women have been made to feel like pay inequity is our fault. You know, women aren't asking for enough, women just need more confidence to get paid the same as their male colleagues, women shouldn't have kids if they want to compete with the guys. I've said it before and I'm going to keep saying it: it's me, hi, you aren't the problem! The problem is the system. The problem is the motherhood penalty. The problem is the lack of child care infrastructure in this country. It's pretty simple: you fix the motherhood penalty and you fix child care, you fix the pay gap. So say it with me: it's not our problem. We're not the problem. They are.
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Long-term care averages about three years, with variations between genders. Women typically require care for approximately 3.7 years, while men generally need care for around 2.2 years. These statistics underline the importance of planning and preparing for potential long-term care needs. . . 𝐋𝐞𝐚𝐫𝐧 𝐌𝐨𝐫𝐞: https://lnkd.in/dhhXWtwa . . #wisdomprincipalfinancial #financialadvice #lifeinsurance #insurancecoverage #financialsecurity #protectyourfamily #financialplanning #financialeducation #retirementplanning
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In production if you get the same quality from a high variety of input materials it's called a well designed and tuned system. If under any regime and with any education level you get similar result in society the system of work is well designed and tuned for the result we get. Biases are so ingrained in the system that no mandate can turn around the results until we change the system. #upgradeyourself #leadershipdevelopment
For anyone still doubting that the motherhood penalty is real, this chart says it all. Not swayed by data? Just listen to the countless moms in the U.S. who are experiencing it for themselves. Every week, my DMs are filled with women who have their own stories of how their careers and salaries still haven't recovered after having a child. If we want to achieve true gender equity, we're going to need to transform our workplaces to finally work for moms. Adequate paid family leave, child care support, and flexible work are good places to start. And to be clear, this chart from The Economist is about women’s employment (not pay). But as we know, the connection between labor market participation and the motherhood penalty runs deep. From The Economist: "Whereas around the world 95% of men aged between 25 and 54 are in the labour force, the figure for women of the same age is just 52%. Little has been understood about how much of this gap is explained by mothers leaving formal work after giving birth. But a group of academics from the London School of Economics (LSE) and Princeton University has now amassed a trove of data to measure the effect in 134 countries, home to 95% of the world’s population. Building on the work of Claudia Goldin, a Harvard economist who was awarded last year’s Nobel prize in economics for her research into gender inequality in the labour market, the authors compare mothers and fathers with childless people of similar age, education, marital status and so forth. Mothers’ labour-market participation falls after childbirth in almost every country in the study. The authors define the 'motherhood penalty' as the average amount by which a woman’s probability of being employed declines during the ten years after the birth of her first child. On average 24% of women leave the labour force in the first year. Five years later, 17% are still absent. After ten years, 15% are." https://lnkd.in/gsdTTssH
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“Most countries display clear and sizable child penalties: men and women follow parallel trends before parenthood but diverge sharply and persistently after parenthood”. This study looked at 134 counties, covering about 95% of the global population. The research reveals that before becoming parents, the employment paths of men and women are remarkably parallel. However, post-parenthood, these paths diverge sharply and persistently, highlighting a substantial and enduring motherhood penalty. The findings highlight the Child Penalty ( motherhood penalty) Full paper here: https://lnkd.in/eUuwAX9g
For anyone still doubting that the motherhood penalty is real, this chart says it all. Not swayed by data? Just listen to the countless moms in the U.S. who are experiencing it for themselves. Every week, my DMs are filled with women who have their own stories of how their careers and salaries still haven't recovered after having a child. If we want to achieve true gender equity, we're going to need to transform our workplaces to finally work for moms. Adequate paid family leave, child care support, and flexible work are good places to start. And to be clear, this chart from The Economist is about women’s employment (not pay). But as we know, the connection between labor market participation and the motherhood penalty runs deep. From The Economist: "Whereas around the world 95% of men aged between 25 and 54 are in the labour force, the figure for women of the same age is just 52%. Little has been understood about how much of this gap is explained by mothers leaving formal work after giving birth. But a group of academics from the London School of Economics (LSE) and Princeton University has now amassed a trove of data to measure the effect in 134 countries, home to 95% of the world’s population. Building on the work of Claudia Goldin, a Harvard economist who was awarded last year’s Nobel prize in economics for her research into gender inequality in the labour market, the authors compare mothers and fathers with childless people of similar age, education, marital status and so forth. Mothers’ labour-market participation falls after childbirth in almost every country in the study. The authors define the 'motherhood penalty' as the average amount by which a woman’s probability of being employed declines during the ten years after the birth of her first child. On average 24% of women leave the labour force in the first year. Five years later, 17% are still absent. After ten years, 15% are." https://lnkd.in/gsdTTssH
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**disclaimer, this post is duh obvious, bare minimum, and should be no big deal** Our kids' daycare is closed today. As I enjoy the day off with two toddlers, I’m taking advantage of an important policy we’ve instituted at Mainstreet Credit Union Canada: personal days for life’s unforeseen moments. This flexibility is crucial, not just as a benefit, but as a step toward addressing deep-seated issues surrounding gender roles in caregiving. Traditionally, mothers have been expected to step away from their careers to tend to home responsibilities, including when children are sick or when care facilities are closed. This not only contributes to the wage gap—where women earn $0.82 for every dollar earned by men—but also impacts career progression and visibility in the workplace. At Mainstreet, we understand these challenges. An internal survey revealed that 65% of our team members are primary caregivers. We're proud that our policies support every employee, regardless of gender, to balance work and family life without penalty. As my wife returns from maternity leave, it's imperative for organizations to support both parents in being "visible" at work and to dismantle the stereotypes that perpetuate the gender wage gap. By doing so, we build not only a more equitable workplace but also a stronger foundation for our children’s future. Let’s challenge the norm, support all caregivers, and take another step towards closing the wage gap. #notbabysitting #creditunions #genderequality
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Information, applied correctly, is power | Keynote Speaker | Business Strategy Advisor
The word "economy" comes from the Greek word oikonomia: oikos = "household" and nemein = "management." The latest batch of research from the Federal Reserve Bank of St. Louis highlighted some interesting developments at the household level. 💰 Assets and liabilities - US households have increased both their liabilities and their assets as a share of their income: the liabilities to #income ratio tripled, while the assets to income ratio increased 2.5X. 👶 Childcare - An estimated 7 million prime-working-age women left their #jobs in early 2020 due to school closures and lack of childcare. As these women returned to the labor force, childcare job openings skyrocketed. 💵 Wages - #Wages grew fastest in 2022 and more slowly in 2023. For example, the average annual percent change for all workers was 4.6% from 2018 to 2019. This rose to 8.3% in 2022 and was 7.0% in 2023. Alex's Analysis: I've seen many comments on LinkedIn lately indicating that people feel government data on the #economy or the #labormarket is not to be trusted because it's being manipulated for political reasons. Personally, I don't believe this is as much of an issue as others do, but to each his/her own. I fully agree that specific data points can and should be questioned, particularly when the methodology used to generate them is flawed. However, for those of you that are skeptical of the data's validity, I think it's worthwhile to at least leverage it for directional input, such as the conclusions I've summarized above, and not dismiss it entirely. In my view, #data-driven decision making still trumps the emotional or politically influenced approach. Just my two cents.
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