Author explores impact of mothers on household finances

Author Kimberly Palmer addresses a forum on personal finance.
Author Kimberly Palmer addresses a forum on personal finance. TNS

Children are not only expensive – they can turn the financial lives of many mothers, especially single moms, upside down, complicating financial planning or making it harder to keep up with the bills that go along with parenting.

Washington, D.C.-based author Kimberly Palmer said she began wondering why men get magazines and books on investing and getting rich while women are targeted for lectures on pinching pennies at the grocery store and saving $10 on their next sweater purchase. It’s why she recently wrote the book “Smart Mom, Rich Mom: How to Build Wealth While Raising a Family.”

“I am a mom myself and I write about money,” Palmer said. “I wanted to address the bigger topics moms are faced with like saving for college and saving for retirement and investing and taking out life insurance. These are some of the bigger things that are so important to moms to make sure we are building financial security for our families.

“I worked hard to make sure I interviewed moms in all kinds of situations: single moms, married, working and stay-at-home moms. What unifies us is that we are moms and it has such a big impact on our finances.”

She said there is a lot of overlap for moms and dads raising children. But the difference in being a mom is that, statistically, moms are more likely to be making the household spending decisions. Also, she said because of the high divorce rate and women tending to outlive men, there is a good chance that at some point women will be managing money on their own.

“That is why it’s so important for us to embrace that responsibility and make smart choices,” Palmer said.

The latest report issued by the U.S. Department of Agriculture in August 2014 showed that a middle-income family with a child born in 2013 can expect to spend about $245,340 for food, housing, child care and education and other child-rearing expenses up to age 18. Costs associated with the mom’s pregnancy or expenses incurred after age 18, such as higher education, are not included.

For middle-income families, housing costs are the single biggest expenditure on a child, averaging 30 percent of the total cost. Child care and education was the second largest expense at 18 percent, followed by food, which accounted for 16 percent.

In 1960, the first year the USDA report was issued, a middle-income family could have expected to spend $25,230 to raise a child until the age of 18.

Many mothers have other women in their lives to help with child-rearing – either by providing direct hands-on help or by offering practical advice on parenting, said Lynnette Khalfani Cox, founder of, based in Mountainside, N.J.

“But even those closest to us – our own moms, grandmothers, sisters or girlfriends – often don’t tell us everything we need to do to become successful parents from a financial standpoint,” Cox said. “This matters greatly because raising kids is incredibly expensive in America. And it’s so easy to let costs spiral out of control or to jeopardize your own financial future or that of your family.

“Women are increasingly the primary breadwinners in their families, or they’re often managing the household budget,” she said. “Even moms who are single, or who have spouses or significant others that out-earn them need to pay attention to their finances and work on building wealth in order to have a secure retirement or meet other goals like buying a home, starting a business or paying for a child’s college education.”