Monday, April 25, 2011

Mother's Day and Working Mom's - What Is Your Time Worth?

When I married my husband we had five babies in seven years and moved eleven times in thirteen years. I also had two stepdaughters for a total of 7 children to support. I left a nice job as a broker to have a more rewarding career as a SAHM (stay at home mom). One of the questions that I frequently heard was: Do you work?

“What do you mean do I work?” I would think even though I politely answered, “Yes, I work very hard as a stay at home mom.” Sometimes, an unsuspecting troglodyte would go on to say something totally thoughtless such as “Well, I meant do you really work. Do you have a job?”

I would bite my tongue until it bled….

What I wanted to say was, “What do you mean do I really work? I work a heck of a lot harder that you do, mister! I’m an accountant, a contract administrator, a chauffeur, a nurse, a soccer mom, a stylist, a wife, and a chef! Plus ten other job specialties! I do all these things as a mom—I’M A CEO MOM, MISTER!”

They usually didn’t ask the same question twice.

These days, as a financial writer and speaker—and a mom, I’ve talked with scores of spouses who work outside the home because of the status of our economy and by necessity--not choice.

Each year, issues a report on what a mom’s time is really worth. According to this site, “Based on a survey of more than 40,000 mothers, determined that the time mothers spend performing 10 typical job functions would equate to an annual salary of $138,095 for a stay-at-home mom. Working moms ‘at-home’ salary is $85,939 in 2010; this is in addition to the salary they earn in the workplace.” That’s a lot of worth associated with this great job of motherhood!

By going to you can log into a calculator that tells you what you would be paid on the economy for all the work you do as a SAHM or as a mom who also works outside the home and inside the home!

How effective is the mom’s work outside the home? Does it pay to work in today’s economy with rising prices and a modest hourly wage? Many military spouses who move frequently do not often have the luxury of annual pay raises at the same company. For example, let’s look at Jennifer.

Jennifer was an administrative assistant who needed to work outside the home to make ends meet. She made an average wage of $8.50 per hour and felt she contributed greatly to the family’s finances. She only had one child in day care, traveled a short distance to work, and paid no state income taxes. Then Jennifer attended one of my Living Rich for Less seminars and was challenged with the idea of “crunching the numbers.” She completed our “Working Mom’s Compensation” form and was shocked. The online version of this is a “one income calculator” is found at

The amazing fact Jennifer discovered was, by working full time--she was making $3 per week! She didn’t realize how those extra pizza nights (because she was too tired to cook), and the trips to the beauty salon (to maintain a professional hairstyle), and all those lunches (away from home) added up! She realized she needed to make some dramatic adjustments. She decided there was a better use of her energy and quit her job outside the home.

But Jennifer didn’t stop there. She implemented some money savings strategies and is making ends meet at home. She has less stress in her life and the freedom to contribute to her family’s financial needs through saving money and by launching her own homebased writing business. In her case, a penny saved was more than a penny earned.

Jennifer’s Salary – The Working Mom’s Compensation Form

Gross Income Per Week Jennifer’s Yours

($40 hrs @8.50/hr) $340 _________


Tithe or donations (10%) $34 _________

Federal Income Tax (18%) $61 _________

Social Security Tax (6.2%) $21 _________

Transportation (10 trips/8mi/@.45/mile) $36 _________

Childcare (1 child) $90 _________

Meals/coffee (@$7/day) $35 _________

Convenience foods at home $29 _________

Extra clothing (includes cleaning) $12 _________

Beauty Shop $14 _________

Other (‘I owe it to me’ items) $5 _________

Total Expenses $333 _________

Net Usable $3

Time Spent:

On the job 40 hours __________

Lunch 5 hours __________

Travel/Commute 5 hours __________

Total hours away from home 50 hours __________

Once you come up with a figure, ask the big question. Is my time, energy and effort worth ______ dollars a week? You’ll be surprised at how painless it is to cut back and save your family a significant amount of money. It’s not magic, it requires work and dedication. After all, not all compensation is measured in dollars and cents.

On the other hand, you might discover that it is worth it and that’s still a great choice—one that works for you and your family!

Whether you are a SAHM or a mom who works outside the home—you’re work is priceless in terms of all you do for your family and for others. You deserve a Happy Mother's Day! Thanks for your hard work, you’re leaving a legacy through your children that will last for decades to come.

Ellie Kay

America's Family Financial Expert (R)

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