The Myth of the Mother's Paycheck
Back in the 80's a national speaker, Bill Gothard, did some research and published the findings called "The Myth of the Mother's Paycheck". His study found that working outside of the home vs. working at home (or being a stay-at-home mom) really did not bring in the additional income that moms thought it did.
Here is the results of the study...averages of the budgets they found (note I am leaving this in early 80's dollars):
Annual wage - $14,000 (again early 80's)
Monthly: $1,166.66
Expenses- Monthly:
1. Federal income tax 15% - $175.00
2. State income tax 3% - 35.00
3. Soc Security 81.66
4. Tithe 117.00
5. Transportation - 400 miles @ .30 per mile - 120.00 (does not include additional cost of 2nd car)
6. Meals - $3/day - 60.00
7. Restaurand and carry-out family 80.00 (from lack of time for preparation due to job)
8. Extra clothes, cleaning 100.00
9. Lost savings on value shopping 116.60 (assumes mother would spend extra time with coupons and getting better deals if no commute and full-time job)
10. Extra time to hairdresser - 20.00
11. Employee insurance 15.00
12. Day care - $50/week, one child 200.00
13. Extra "I owe it to myself' expenses 95.00
Total monthly $1215.26
Net Loss - (48.60)
Again obviously these prices are outdated due to inflation, but it was a fascinating study that I have never forgotten, and I dug it up today to share it in this article.
My last job, I traveled 1 hour each way in the commute. The tolls alone were $5.50 per day. I had a leased car, and was over mileage on it, and so the last few months I calculated it was costing me $25 each day for the commute! That does not count the 2 hours of lost time in the commute! I also ate out a lot for lunch, going out with my co-workers. I can also relate to the "I owe it to myself" expenses...for us it was often going out to eat probably 2 or 3 times more a month, often right after I got my paycheck.
If you are a mom and are weighing a full-time job outside of the home (the "big paycheck") against the option of a part-time, work at home job that will give you more time at home with your kids, then do a budget analysis like the one above for yourself.
What areas would you spend more each month if you worked the full-time job? Gas and tolls? Extra mileage on your car? Could you get by without a second car?
What about extra meals? Childcare? Could you save money fi you had time to "shop around" more online for purchases, and use coupons more?
Making a budget like the one above can help you in your decision of whether to keep working a full-time job with a commute, or seeking a part-time job at home.
