1. Your Children: A New Financial Challenge
Chapter 5

2. Working Mothers
More than 60% of mothers with at least one child under 6 years old are in the workforce, as are more than three-quarters of mothers with older children.
By age 40, women in the work force average 12.1 years of experience compared with 16.4 for men according to the Employment Policy Foundation

3. Working or Not Working?
Once you have children, it’s a whole new ballgame, with new obligations, new experiences, new demands on your time, and a new degree if interdependency with your spouse/partner
Your marriage is a partnership having parity in the decision making progress is very important

4. Working or Not Working?
Every women will have to assess her family situation and personal preferences, and some sort of compromise may be in order. But when the dust settles, you will have to decide whether to work or not to work-- and each decision has financial consequences

5. To Work Earn extra income for your family
Enjoy some degree of financial independence
Your biggest financial concern is often how to pay for expensive day care

6. Not to Work Financial Challenges
Avoid becoming totally dependent on your spouse or partner
Can we afford to live off one paycheck?
Take on the the responsibility of the day to day financial matters of the family

7. Raising Kids on On Paycheck
More parental job satisfaction--less in the way of material goods
Don’t splurge
Shy away from debt

8. Pare Your Expenses
Some expenses will decrease if you chose to stay at home
Work wardrobe, dry cleaning, lunches out, commuting costs, child care, or take-out dinners
Some expenses will increase
Utilities, groceries, health insurance

9. Borrow With Discretion
Home-Equity loans and lines of credit usually have the most attractive rates, and most people will be able to deduct the interest. But apply before you lose your second income.

10. Tap Your Assets, But Address Reality
Some families withdraw money from their IRAs, they lean on their credit cards, and skimp of financial safety nets
These may have no short term pain but be careful the long-term risk increases over time

11. Take Advantage of Family-Friendly Tax Breaks
The Child Credit
Available for each child under 17- $1000
The Child-Care Credit
This tax break is based on what you pay for the care of dependent children under age 13
The Size of the credit depends on 2 things
How much you pay for child care
What your adjusted gross income is

12. Take Advantage of Family-Friendly Tax Breaks
Child-Care Reimbursement Plans
With these accounts, you can allocate a certain amount of your salary, up to $5,000 a year, to cover child-care costs
This money is exempt from federal income, Social Security, and Medicare taxes, and generally from state income taxes as well

13. Getting Help With The College Bills
State-Sponsored College Savings Plans
529 Plans
Not only do earnings grow tax-deferred, but they are tax-free when the money is used for qualified college expenses
There are no income restrictions that shut out high earners

14. Getting Help with the College Bills
Coverdell Education Savings Accounts
Limit to how much you can contribute each year-- $2,000 per child
You can invest in any stock, bond, or mutual fund you wish
You can use this plan not only for college bills but to pay for private elementary or high school or even for other educational expenses, such as camp or a computer

15. Getting Help with the College Bills
Prepaid College Tuition Plans - PACT
These plans allow parents of children who are three or more years away from attending college to lock in today’s tuition for the future by paying a lump sum or by setting up a monthly payment program

16. Getting Help with the College Bills
Roth IRAs
You can withdraw your contributions at any time, for any purpose, without having to pay income taxes or penalty. You can also withdraw earnings on a Roth to pay college bills without incurring a penalty if you are certain age.

17. Special Issues for Single Parents
It’s tough on your own especially if there’s an ex-spouse or absentee parent in the picture who sometimes seems to be undermining our efforts rather than supporting them

18. Teaching Kids about Money
Six Money Skills Kids Must Master
How to manage a cash allowance
How to manage a checking account
How to save for a goal
How to compare prices
How to figure the time value of money
How to get out of debt

19. Don’t Stop Now!
Revisit your financial plan if you’re thinking of having a baby, and increase your savings now to give you the financial flexibility you may want later
Don’t take an all-or-nothing approach to work.

20. Don’t Stop Now!
Call your benefits department for information about child-care reimbursement plans and be sure to claim any tax credits available to you after the baby comes
Pass along to your daughter and sons the financial knowledge and sense of personal responsibility you’ve gained.
Sit down and talk with your spouse to find common ground in you differ in your expectations for your children regarding money