Over seven in 10 (72%) mothers said caretaking responsibilities — either for children or adult relatives — impacted their ability to achieve long-term financial goals, according to a TD survey released Tuesday.
The impact included mothers’ ability to pay off debt (38%), invest in their family’s future (30%) and fulfill their retirement goals (28%).
Some women end up with expenses caring for the generations above and below them that can impede plans or goals they may have had before starting a family, Lilly Hua, a senior regional manager at TD Wealth in Toronto, said in an interview.
Harris Poll Canada conducted the TD survey in April with more than 1,500 women participating, just under half of whom (811) identified as mothers.
Of the female respondents with children, 90% said they prioritized their family’s wellness and health over their own after having children.
Some may also prioritize spending on their children over their own long-term needs such as retirement, Hua said.
Three-tenths of women with children spend over half of their family’s discretionary budget on their children, according to the survey. This proportion is higher among younger families with 43% of Gen Z and 40% of Millennial mothers reporting spending most of their discretionary budget on their offspring.
Planning ahead
Planning ahead can help families get a grasp on the expected costs of raising a child they way want, Hua advised. Aspiring parents should discuss their plans with a financial advisor, she said. “You’re ready for the toddler stage, but do you want to put them in private school or have extracurricular programs? [For] a lot of people, it becomes an afterthought.”
Maternity leave is another factor to consider as it could reduce the mother’s earned income and last longer than planned. One of Hua’s colleagues, for example, planned to return to work after three months of maternity leave but ended up wanting more time with her son.
“When you see this beautiful little baby boy staring back, you’re like, ‘You know what? I’m actually gonna take the full year,'” Hua said. “I said, ‘Please, please take the full year.’ So, you’ve got to have contingency plans.”