Calling all moms gearing up to jump back into the workforce post-maternity leave! We've got your back with six essential financial planning steps straight from the pros - think HR specialists and CEOs. We're talking about everything from nailing down commission details pre-leave to rethinking your financial game plan after having a baby. These insider tips are all about making your return to work as seamless as can be!
Advice for Returning to Work After Maternity Leave
Clarify Compensation Before Leave
Preparation is key for maternity leave. I was in a commission-driven role when I took my two maternity leaves, with changes in management between the two. I wish I had asked more specific questions about compensation, specifically commission before I left. Knowing exactly what you will be owed, for how long, and any changes that might occur to your commission structure during your leave is important so you can budget appropriately. Budgeting is extra important for those in a sales capacity, as your pipeline will likely be slow to rev back up after being away, along with the inevitable changes to your schedule and lifestyle.
Some HR departments are great at helping you navigate your state-specific paid leave options, but most of the time, it's up to you to research the options and take full advantage of them. @TheMamAttorney has fantastic resources for moms navigating a leave of absence.
Haley McNeel Drake, Resume Writer & Career Coach, The Career Revisory
Utilize Networks and Resources
One key financial planning step that should be considered for parents returning to work after maternity leave is taking advantage of your network and available resources. This is a crucial time to ask for help from friends and family. Even if they can't provide financial support, they might offer to volunteer for childcare, which can be a huge relief when transitioning back to work. They might also have hand-me-downs like clothes, linens, and other essentials for childcare that can save a lot of money.
Additionally, many retailers provide welcome kits for new parents, including free samples and coupons for baby supplies, which can be very helpful. Government assistance programs like WIC and SNAP can also be valuable during unpaid parental leave if you qualify based on your income.
Furthermore, it is a good idea to connect with local parent groups on social media or through faith-based organizations. These community groups and nonprofit organizations often have additional resources and support for new parents, which can be incredibly beneficial during this time.
Eric Croak, CFP, President, Croak Capital
Adjust Budget for New Expenses
Before moms return to work after maternity leave, I recommend they take a hard look at their family budget and try to factor in any new expenses. A few months after my first, I remember getting sticker shock when I saw the family bank account. Why are we spending more than usual? Why is our balance dwindling?
I had not factored in the costs of diapers and baby formula. Our family had been eating out more than normal and purchasing a few new big-ticket items, such as a stroller and crib for the baby. Sitting around on pregnancy leave, it's pretty easy for a mom to search online and buy, buy, buy—diaper bag, car seat, etc.
My husband and I decided to revise some of our savings funds and find areas where we could cut back on spending. It doesn't have to be perfect, but calculating monthly spending and game-planning can help keep everyone on the same page. When you make those more significant purchases, evaluate how much you spend monthly on necessary items like diapers—factor these expenses into your budget so you don't get blindsided.
Amy Johnson, Founder and Blogger, AmyBabys.com
Update Budget for Parenthood
As someone who navigated the transition back to work after maternity leave, I know firsthand how crucial it is to prioritize financial planning. One key step often overlooked is reviewing and updating your budget to reflect new expenses and priorities with parenthood. It's not just about childcare costs but also considering potential changes in insurance needs, savings goals, and even adjusting discretionary spending to accommodate new family dynamics.
I remember jokingly calling it my "baby-budget reboot" because it involved reevaluating everything from grocery bills to future college funds. Taking this step early on helped me feel more financially secure and prepared for the journey ahead, balancing the joy of motherhood with sound financial health.
As a working mom who has already experienced this, a critical financial planning step that shouldn't be overlooked is the extra costs that come with returning to work. Being dependent on family for child care while at work was short-lived, significantly impacting my job opportunities. The cost of daycare can be equivalent to a whole mortgage payment, which can greatly affect any existing financial plans. If daycare is not a feasible solution, then changing careers is the only solution in order to accommodate what is needed for the family.
Kay Yang, HR Specialist
Reassess Financial Priorities Postpartum
One key financial planning step that moms returning to work after maternity leave shouldn't overlook is reviewing and potentially adjusting their budget to accommodate new expenses and changes in income. This is a major adjustment in your life, and it should be reviewed as such.
As a professional female business owner with extensive experience in finance, I understand the importance of reassessing financial priorities after a significant life event like maternity leave. It's crucial to account for childcare costs, possibly reduced or altered income during leave, and any additional expenses that come with balancing work and family life. By proactively revisiting and adjusting their budget, moms can better align their financial resources with their current needs and goals, ensuring greater financial stability and peace of mind as they transition back into the workforce.
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