There are potential financial benefits to being a stay at home mom, but there are hazards too. Today I will review some of them.

The most obvious loss is that income which you would have brought in had you kept working. How much of a loss this is depends on many factors, and as mentioned in my article on the financial benefits of being a stay at home mom, may actually show up as a loss when you figure it all out, depending on a variety of factors.

However, there is more to it. If you stop working for a time you also stop getting promotions. While that is not a loss easily calculated when deciding to stay at home it is very real and can impact the rest of your working life.

You may also fail to keep up the skills necessary to your industry and not be able to step back into it at the same level. This can greatly impact your earning capacity as well.

When you stay at home it can be very difficult to save for retirement. If your husband’s income is sufficient you may be able to have him contribute to a spousal IRA, but many families will not be able to afford this. This can be years of lost retirement income.

Overall, the loss can often be around $1 million, by the time you factor it all in. That’s no small sum.

There are ways to offset this cost, which is the subject of my next post in this series.

[tags]financial hazards,losing money,single income,family,raising kids,SAHM[/tags]