Many parents, especially women, often make the sacrifice to give up their jobs to stay home and take care of their children. Some do this because they want to experience raising children themselves, and they don’t want to miss out on any baby and toddler milestones. Others do it because the financial cost of quality day care costs so much it’s a smarter financial move not to move.
Before you quit your job, though, remember to consider not only the paycheck you take home each week but also the financial perks you’ll be giving up.
Consider these benefits and whether or not you and your significant other can live without them:
1. Retirement Match
If you’re employer matches your retirement savings, you’re essentially getting free money that can boost your retirement savings dramatically. If you quit your job, have a plan for how you will set aside money for retirement. You don’t want to give up retirement savings and hurt yourself financially in the future.
2. Life Insurance
If you’ve opted to get your life insurance at a discount rate through work, know that you’re likely no longer eligible for that policy when you leave. You’ll need to find a private company such as AAMI life insurance to issue you a policy. Depending on your health, age, and coverage amount, this could cost you on average $20 to $70 per month.
3. Health Insurance
For many, health insurance is the factor they most seriously have to consider before quitting. If your spouse has health insurance through his work, this may not be a deal breaker. You and your children can sign up under his policy. While you may have to pay a bit more, you’ll still have insurance. The difficulty arises when your spouse doesn’t have health insurance.
4. Paid Vacation Time
Unfortunately, being a full-time parent doesn’t come with paid vacation days. (Though many of us wish it did!) If you’re the primary caregiver, you’ll be responsible for your child whether you’re sick or not. You’ll likely have to figure in the expense for a caregiver should you be too ill to care for your child, especially if you don’t have family nearby.
5. Disability Insurance
Disability insurance is something people don’t usually consider until they need it. If you’re in a car accident and are disabled for any amount of time, you’re employer likely offers disability payments that may be 50% of your salary or more. When you quit your job, those perks are gone. While you may not be earning an income as a stay at home parent, you do many jobs that you might not be able to do if you’re disabled.
Before you quit your job, make sure you consider not only the salary that you will be giving up, but also the benefits.
Are you afraid of losing any perks by quitting your job?