Financial planning for working moms can be difficult to navigate, and never more so than when you are thinking about a career change. Perhaps you’ve burnt out. Or, perhaps you need a career change to better fit your life as a parent. For many working moms, the arrival of your kids often prompts a reevaluation of priorities—including career goals. Whether it’s the desire for more flexibility, a less stressful role, or a complete shift into a new field, transitioning careers as a mom presents a unique set of financial challenges. Between the high cost of childcare, the motherhood penalty, and the need for more flexible working arrangements, it’s no wonder that financial planning for working mums feels like climbing a mountain in stilettos.
You probably don’t feel that you have much money at the moment, so thinking about your financial future and your financial security will come with several mixed emotions. Financial stress and financial wellbeing have a huge impact on your burnout risk too.
If you’re on a tight budget, but you want to change careers, then I’m here to help. Let’s start by breaking down the main financial hurdles working moms face when considering a career change. Then, you’ll learn 9 practical and powerful tips to help you prepare for that transition without losing your mind (or your savings).
The financial challenges that a working mom faces
- The high cost of childcare – according to data from the UK and the US, childcare is one of the biggest expenses for families. In the UK, full-time nursery care for a child under two can cost upwards of £14,000 per year (from this article in Nature). In the US, parents are paying an average of $10,000 to $15,000 annually per child for childcare (via SIEPR). That’s a mortgage payment in many cases—and these costs don’t magically disappear if you decide to change careers. Additionally, research shows that women typically pay for childcare costs themselves, even if they are in a relationship.
- Needing flexible or part-time work– many moms want more flexibility in their schedules to accommodate family life, but part-time or flexible jobs often come with lower pay and fewer benefits. The motherhood penalty is real. Research shows that moms are paid 12-15% less than their child-free counterparts, and working fewer hours only exacerbates this gap.
- The Motherhood Penalty– it’s no secret that moms are often overlooked for promotions or high-profile projects, especially if you’ve taken time off for maternity leave. Research shows that women with children earn significantly less than men with children, and this gap persists even in progressive workplaces. The motherhood penalty doesn’t just affect your salary today; it can also reduce your future earning potential and retirement savings.
If these challenges make you want to scream into a pillow, then you’re not the only one. Financial planning for working moms is tough, and especially when you’re on a tight budget! So, with these challenges in mind, here’s how you can start to prepare for successful career change- without the stress of money problems:
9 practical steps for financial planning for working moms preparing for a career change on a budget (with common objections, and how to overcome them!)
1. Create a household budget
Objection: “I’m already drowning in bills! A budget isn’t going to magically give me more money!”
How to overcome:
I get it—looking at your personal finances can feel like staring into the abyss. A budget isn’t about finding extra cash under the couch cushions (though I wish it were!). It’s about knowing where your money is going so you can make better decisions. Think of it like Marie Kondo-ing your finances—declutter the unnecessary, and you’ll feel in control again. Start small, with just one week’s worth of expenses, and you’ll see where those invisible leaks are happening. Take a look at your monthly income and your monthly expenses, and go from there.
2. Build an emergency fund
Objection: “Emergency fund? I’m just trying to get through this week without dipping into my overdraft.”
How to overcome:
Listen, you need a safety net, but I know saving feels impossible when the grocery bill alone looks like it’s paying for a small army (those of you who have boys hear me right!), and the amount on your credit cards is increasing. But, an emergency fund doesn’t have to start with $10k in the bank. Even $20 a month adds up. Automate the savings so you don’t even see it, and pretend that little bit of money is your ‘future-you treat fund.’ The peace of mind is priceless. You can achieve your long-term goals this way. Go on- open a savings account today! It really is the best way to give yourself peace of mind as you navigate career changes (or other curve balls/unexpected expenses that life occasionally throws at you). Start by setting yourself the target of having a month of expenses in savings.
*We currently use the Plum autosavers feature to save small amounts each month. This isn’t an ad or an affiliate link but a genuine recommendation. It helped us to easily save $600 for a very special big birthday event recently. We were able to use the money to have a night away, have a fabulous dinner, and see a West End show without worrying about the cost as it was already paid for. We didn’t even notice the money going from the account.
3. Plan for the cost of retraining or upskilling
Objection: “I can barely get through a day without a coffee, let alone think about taking a course!”
How to overcome:
No one’s saying you need to jump into a full-on degree program with a textbook in one hand and a baby bottle in the other. Start small. There are tons of affordable (even free!) online courses—check out platforms like Coursera or LinkedIn Learning. Or, perhaps you could even start with YouTube! It has a ton of free resources on it. You can learn any skill on YouTube. My husband learned to build via YouTube, and he ended up building our entire home extension without spending a penny on learning this new skill set. Start with something bite-sized, and it won’t feel overwhelming. Think of it as an investment in Future You, who will be so grateful for the added skills. You can get so much decent financial education online too. Whilst planning your career change, you might also like to read this previous article on career advice that working moms should never take to avoid any painful mistakes!
4. Cut unnecessary expenses
Objection: “Cut what?! I don’t even splurge on lattes anymore!”
How to overcome:
I feel you, but even the most frugal among us have hidden expenses. Have you looked at your subscriptions recently? (Cough that gym membership you haven’t used since 2021 cough). Revisit every small automatic payment and ask yourself if you need it. It’s not about depriving yourself; it’s about spending on things that bring you joy and utility. This is a really helpful tip if you work full time but your financial health isn’t in the best of states- it’s an easy win to help you feel more in control of your outgoings.
5. Maximize childcare support or benefits
Objection: “I’ve looked into it—there’s no help for me!”
How to Overcome:
I hear you, but government programs are a maze, and it’s easy to miss things. Revisit your options—sometimes new subsidies pop up, or maybe you’ve missed out on tax-free childcare. Try speaking to a financial advisor or using a benefits calculator (in the UK, sites like Turn2Us can help). It doesn’t hurt to dig around a little more. You’d be surprised at what you might be eligible for. This is a great first step if you’re not sure where to get started on your journey to financial independence. By getting some additional support this will allow you some flexibility to look at your life goals and to shoot for a job that will eventually give you a much higher income.
6. Start side hustling
Objection: “How am I supposed to start a side hustle when I barely have time to shower?”
How to overcome:
Side hustling doesn’t have to mean working 40 more hours a week- working moms already don’t have much time on their hands. Think of it as a great way to build an additional “slow and steady” income. It can be something you’re already good at—selling preloved baby clothes online, freelance writing during nap time, or tutoring on weekends. It’s about finding something flexible that fits into your current life, not adding a ton more stress. Having a side hustle will generate additional income that will help ease any career break, or change.
7. Understand how your career change affects your long-term financial goals
Objection: “Retirement?! I’m more worried about making it to the end of the month!”
How to overcome:
When you’re focused on changing careers, the last thing on your mind is your retirement plan. But here’s the thing: even if retirement feels like a distant worry, making sure you don’t lose track of long-term savings now will save you headaches later. If you’re switching to part-time work or going freelance, it’s important to know how your pension or retirement savings will be affected. Check with your current employer about what happens to your pension contributions if you leave or reduce hours, and consider setting up a personal pension plan if your new career won’t come with employer contributions.
Think of it this way: you’re not planning for a luxury yacht in retirement (though, hey, why not dream big?), but for peace of mind down the line. Even small, consistent contributions now mean you won’t have to scramble later. You’ve got enough to juggle already—so let Future You benefit from a little planning today! Setting clear goals will help you to prepare for your golden years.
8. Talk to a financial advisor
Objection: “A financial advisor? That sounds expensive and way too fancy for me.”
How to overcome:
Financial advisors/a certified financial planner aren’t just for billionaires. There are affordable options, and some workplaces even offer free consultations. Many advisors work on an hourly rate or offer free first-time sessions, and they can save you more money in the long run than they cost upfront. Plus, they’ll help you see the bigger picture without the stress of doing it all yourself. In the UK, financial advisors are regulated, so you can rest easy knowing this. They can help you will some of the more intimidating financial things that you’ve been putting off- like getting life insurance, maximising your interest rates, and thinking about retirement accounts. They’re great to help you feel that you have a really solid financial plan.
9. Allow yourself a little self-care (it doesn’t have to cost anything!)
Objection: “Yeah, but I have no time or money for self-care. I can barely fit in a nap!”
How to overcome:
Self-care doesn’t have to be a spa day (we can dream though, right?), or something where you need to spend a lot of money- money that could be used instead to prepare for a career change. Self-care can be as simple as sitting in the car for 10 extra minutes before the school run to breathe or read a chapter of a book. It might be arranging to meet a friend for a walk at the weekend. Being kind to yourself is about small, manageable moments. Taking care of your mental well-being as you prepare for a career change in a way that is financially sustainable will help ease the stress of this period.
Final thoughts on financial planning for working moms considering a career change
Changing careers after having kids is a big deal, both emotionally and financially. With some thoughtful financial planning, working moms can navigate the transition smoothly. By creating a solid budget, building an emergency fund, and cutting unnecessary expenses, you can prepare yourself for the next chapter of your professional life without sacrificing your financial stability. The journey may be challenging, but the result—a fulfilling career that works for you and your family—is well worth the effort.
Remember, financial planning for working moms is all about creating flexibility and security, so take the time to plan and give yourself the best chance to succeed.
Further reading:
I highly recommend a read of Money Mentor by Anna Brading (aff link). She walks you through the 10 Steps to mastering your money as you learn how to piece together your own financial plan, step by step, and track your progress as you go. (Spoiler alert: it’s not that hard – we were just never taught this stuff in school!). Upgrade your financial knowledge now- this is essential reading for any mom looking to prepare their finances for a career change!
Disclaimer:
This article is for informational purposes only and is not intended as financial advice. For personal financial planning, please consult a certified financial advisor.