Motherhood or Money? How to Stay Financially Independent

Motherhood brings incredible rewards, but it also comes with financial challenges. Many women step back from their careers, sometimes temporarily, sometimes permanently, without realising how this affects their long-term financial independence. The cost of pausing a career goes beyond lost wages, impacting pension contributions, investment growth, and future earning potential. While prioritising family is natural, taking proactive steps to protect financial security helps ensure a stable future.

With over 15 years of experience, Rhiannon Bagshaw is an FCA-qualified wealth planner who helps clients achieve financial clarity and confidence. As a key figure in Skybound Wealth’s ‘Women Like Us’ initiative, she is dedicated to empowering women to take control of their financial future. Her expertise covers savings, investments, pensions, and estate planning. Here, she discusses the challenges women face and the steps they can take to remain financially independent while raising a family.

The Hidden Cost of Taking a Career Break

Taking time away from work to raise children has lasting financial effects. Beyond lost salary, women who take career breaks often miss promotions, pension contributions, and investment growth. A five-year career gap for someone earning £50,000 per year could cost over £250,000 in lost earnings alone, not including the impact on retirement savings.

Even after returning to work, many women take part-time or lower-paid roles to accommodate family responsibilities. While flexible, these roles often come with fewer opportunities for advancement, lower salaries, and limited benefits. Over time, this can widen the financial gap and leave women vulnerable later in life.

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The Risk of Relying on One Income

Many women depend on their partner’s income during their caregiving years. While this may work in a stable relationship, it also carries risks. Divorce rates remain high, and research shows women often face financial challenges after separation. Additionally, relying on a single income leaves families more exposed to unexpected events like illness or job loss. Ensuring financial independence means having access to personal savings, investments, and a long-term financial plan.

How to Stay Financially Independent as a Mother

Financial independence doesn’t require full-time employment, it starts with small, consistent actions. Setting aside a portion of household income for personal savings, keeping up with professional development, and staying engaged in the workforce through freelance work or consulting can help bridge career gaps.

Flexible work arrangements have also created more opportunities for mothers to remain in the workforce without sacrificing family time. Exploring part-time roles, remote work, or family-friendly employment policies can provide financial security while maintaining work-life balance.

Smart Financial Steps for Women

Planning for financial independence means taking practical steps:

• Emergency Fund: Aim for three to six months of living expenses to cover unexpected challenges.
• Pension Contributions: Even small, regular contributions can have a big impact on long-term savings.
• Investment Strategy: A diversified portfolio helps create security and growth over time.
• Financial Planning: Working with an adviser ensures a tailored approach that factors in inflation, longevity, and personal goals.

Taking Control of the Future

‍Motherhood is a gift, but it shouldn’t come at the cost of financial independence. Planning ahead and making informed decisions allows women to enjoy the rewards of caregiving while securing their future.Looking to strengthen your financial future? Speak with a Skybound Wealth adviser today to explore the best strategies for your goals.