Working mothers talk about ‘mom tax’ — the financial toll of motherhood on their careers and salaries

Working mothers spoke to MarketWatch about the “mom tax” or “motherhood penalty”, which increases their responsibility at home and limits their earnings and income. Women face financial penalties, from paying taxes on menstrual products to stepping back from the labor force to take on a caregiving role, leading to fewer opportunities to invest and save for retirement. 

The gender pay gap persists, with women earning only 82 cents for every dollar earned by men. Glassdoor revealed that male-dominated college majors resulted in higher-paying jobs, while female-dominated college majors resulted in lower pay.

 Mothers are less likely to be in the labor force and work fewer hours each week, reducing their earnings, while fathers work more hours and enjoy a “fatherhood wage premium” that widens the gender pay gap. Single mothers have significantly less wealth than single women without children, while dads do not face the same penalty. 

The caregiving economy is the backbone of society, but women commonly step back from the labor force to take care of their families, leading to mental health concerns. To break this cycle, experts recommend being a role model, talking about money and savings, not lowering expectations, investing wisely, and letting go of mom guilt.