Many women dream of staying home to raise their children. The dream can become a nightmare when the man they rely on for financial security leaves them stranded and penniless.
Here’s how stay-at-home moms can protect themselves.
Value Education
Before considering motherhood, you should set yourself up for future success with an education.
Learn a trade, get a bachelor’s degree, and develop crucial career skills so you’ll always have something to fall back on.
Start Your Career
Don’t leap straight from school to the home. Take a few years to get established in a career. Build a network and save as much money as you can.
During these precious working years, contribute as much as possible to a retirement savings account. When you quit to raise your littles, the fund will continue to grow, providing you an additional source of income in retirement.
Sign a Prenup
Many women fear prenups, but they can help you, too. Prenups don’t just protect his money. They can outline a fair split of assets in cases where one spouse sacrifices their career for the family.
When drafting a prenup, be sure to consult your own lawyer and discuss all the possibilities of stay-at-home motherhood to ensure you’re compensated for your time and labor in case of divorce.
Your Name Goes on Everything
A marriage should be a partnership. Stay-at-home mothers must ensure their names are on all the assets, including the house, cars, brokerage accounts, and joint checking accounts.
However, it’s okay for each person to have their own savings accounts, too, as long as they’re equally funded.
He Funds Your Retirement
While you stay home with the children, your husband should be contributing to a spousal IRA for you.
If you eventually divorce, you can keep that spousal IRA to fund your retirement.
Your Own Savings
Individual bank accounts are an emotional topic for couples. Many think that if there’s complete trust, everything should be joint.
Put emotions aside and look at things objectively. If you truly love someone, you would want them to be protected from any eventuality. A bank account in only their name offers that protection.
You both should have your own bank accounts, and he should fund them equally from his paycheck.
Keep Your Skills Current
You don’t have to completely disengage from the professional world to be a stay-at-home mother. Take courses, become a mentor, or pick up a couple of freelance gigs to keep your skills current.
These small steps can pack your resume, showcasing you can do the work if you need to reenter the workforce before you planned.
A “To-Go” Bag
We never think our relationship will become abusive, but over 30% of all women experience violence at the hands of an intimate partner.
Pack a “to-go” bag and keep it safely hidden somewhere to escape quickly if needed.
Maintain Your Friendships
Don’t let motherhood destroy your friendships. Keep in touch with work colleagues, old friends, and family, even when battling toddlers.
Your network can be your best resource for quickly escaping a bad relationship and finding a new job, should the need arise.
Trust But Verify
Trust is paramount in a relationship, but trusting unquestioningly can lead to heartbreak. As a stay-at-home mom, you must have open access to all the financial records so you can see where all the money is going.
Financial Literacy
Access to financial records won’t help if you don’t understand them. Everyone should have a fundamental understanding of basic finances.
Know how he files taxes, learn how to track your joint investments, and be a part of all the conversations about money. It’s your money too.
Know the Budget
Budgeting should be a family affair. Don’t let him handle it all. In the past, men could hide whole second families because their wives didn’t understand the budget.
You must know how much money comes in and how much goes out to various expenses. It’s crucial not just in case of divorce but also if something unimaginable happens to your husband.
Life Insurance
Divorce isn’t the only thing that can disrupt your life as a stay-at-home mother. Life insurance can protect you and your children financially during the worst period of your life.
Disability Insurance
Disability can hit anyone at anytime. What would happen if your husband can no longer work? What if he’s bedridden and can’t help with the kids?
Disability insurance can fill the gap.
Maintain Credit
Although your name should be on all the joint assets, you should also always keep at least one credit card in your name.
Credit history is vital if you ever need to rent your own place or finance a car on your own.
Financial Reviews
At least once a year, you should sit down with your partner and conduct an in-depth financial review. Check the retirement savings accounts and tax forms, and even peek at each other’s savings accounts to ensure nothing shady is happening.
A couple that loves and trusts each other can maintain separate bank accounts but allow their partners to see their spending because they have nothing to hide.
Side Hustles
With all the technological advances, stay-at-home moms don’t have to give up work altogether. Start an online side hustle to fill gaps in your savings and keep your skills fresh while dedicating most of your time to raising your kids.
Start a blog or podcast, babysit for other moms, create printables to sell on Etsy, or do some driving when your husband gets home from work.
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