March 26 2021
Episode 9: Margaritas with Marguerita — Equal Pay for Single Moms
March 26, 2021: A Note from Marguerita Cheng, CFP® — Welcome to my new radio show, “Diary of a CFP® Pro,” where I’ll be sharing insight into how women will learn how to improve their knowledge of financial matters so they can gain financial security.
This show is a companion to my upcoming book of the same title. I’ll be doing webinars on the last Friday of the month, where I invite you to join me for “Margaritas with Marguerita” on the Inkandescent Radio network. Pour a glass of your favorite beverage, and download the worksheet for this month’s session. In 15 minutes, I’ll share the month’s topic’s details and take any questions that you might have! Scroll down for a preview of what you can expect!
On today’s show: We talk about a topic that impacts so many women — equal pay for single moms. This week, Rita Cheng, CFP® talked with CNBC reporters Sharon Epperson and Michelle Fox about the fact that single moms are hit the hardest by the gender pay gap — and custody arrangements can matter.
Let’s start with the facts: While full-time working women lag behind men in pay, making 82 cents for every $1 a man makes, mothers are even further behind. Moms earn 75 cents for every dollar paid to fathers and single mothers bring in 54 cents for every dollar earned by married men, according to the National Women’s Law Center.
A recent survey shows custody arrangements have a bearing on what single mothers earn. Those with a 50/50 parenting schedule are 54% more likely to earn at least $100,000 a year than those whose kids are with them most of the time, according to the Single Mom Income and Time-Sharing Survey. It polled 2,270 single mothers in the U.S. during the summer of 2020.
Rita, there is a lot of pressure on moms to be the primary parent, so how can moms overcome the pay gap?
Rita: To overcome the pay gap, it is not just about equal pay, it is also about finding an equitable, financial situation for single moms whenever possible.
Here are some things to be on the lookout for:
- Ideally, that should be done before the divorce is finalized.
- However, negotiations can be made along the way for more equitable parenting schedules that create flexibility for working moms.
- That can help give them time to devote to their career, return to school, take some professional development courses, or network.
- Many single moms may be part-time, or they may be solopreneurs or freelancers. If a single mom happens to have full-time employment, it’s not just the paycheck she’s collecting or receiving or earning. It is employer benefits, such as paid time off.
- That may also include other safety nets such as health, disability, and life insurance, as well as a retirement savings plan.
- Flexibility with parenting may also give mothers more opportunities to increase part-time and freelance work.
- Single moms should focus on the long-term, not the short-term when dividing property in a split.
- What does it look like if I keep $100,000 worth of stock vs. 100,000 of cash? What does it look like if I keep the house versus the retirement plans?
- It doesn’t mean they shouldn’t keep the house but understanding you may want to keep the house for the short term, but have a plan and understand the long-term implications of what that might be in the long run.
