Mother’s Day is a celebration of love, sacrifice, and the invaluable role mothers play in our families. For stay-at-home moms (SAHMs), this role is especially unique—and often underappreciated—in the financial planning conversation. At Favored Financial Planning, we believe every mom deserves recognition and a secure financial future. This Mother’s Day, we want to celebrate stay-at-home moms by highlighting three areas that can strengthen mom’s financial foundation.
1. Spousal IRA: Because Mom—You Deserve Retirement Security Too
Just because you’re not earning a paycheck, it does not mean that you should miss out on retirement savings. A Spousal IRA is a powerful tool that allows your household to contribute to an IRA on your behalf, giving you access to tax-advantaged retirement growth.
Here’s how Spousal IRAs work:
- Your household must have earned income (your spouse’s job qualifies).
- For 2025, you can contribute up to $7,000 annually ($8,000 if 50 or older), just like any traditional or Roth IRA holder.
- You build your nest egg and maintain financial independence, even if you’re not in the workforce.
It’s a simple yet impactful way to honor your long-term financial health—and your contributions to your family.
2. Life Insurance: Protecting What You Both Bring to the Table
The unexpected will happen. You NEED life insurance, whether you work or not. Financial plans should account for life insurance on the partner working outside the home and the stay at home spouse. The loss of a stay-at-home mom would result in significant costs—childcare, home management, and emotional adjustments are just a few of the costs that would need to be covered.
Consider getting coverage for the stay-at-home mom to help cover the cost of care, household services, or counseling in the event of an untimely passing. Also, consider adequate coverage for the working spouse to ensure the family remains financially secure if they are no longer able to earn an income. Adjusting to the new norm will also take time. Factor this expense into your plans. Remember, having life insurance isn’t about expecting the worst—it’s about planning wisely so your family is covered from every angle. Being proactive is necessary to stay financially sound.
3. Know the Whole Picture: Understanding All Your Family’s Financial Assets
As the primary caregiver and often the household manager, you should be fully informed of your family’s financial landscape. This means more than just knowing your monthly budget—it means having clarity on:
- Where all accounts and assets are held (checking, savings, investment, retirement).
- Passwords, beneficiary designations, and legal documents like wills or trusts.
- Who to contact in case of an emergency or unexpected event. Having a trusted financial advisor can serve as an invaluable resource.
Understanding the full financial picture isn’t just empowering—it’s essential. If something were to happen to your spouse, knowing how to access accounts and continue managing your household is not just practical; it’s peace of mind.
Cordi, owner of Favored Financial Planning, knows from personal experience that being a stay-at-home mom is a full-time job, often without set hours, salary, breaks, or public recognition. At Favored Financial Planning, we believe SAHMs deserve just as much care and attention as any other career when it comes to planning for the future. So this Mother’s Day, in addition to flowers and breakfast in bed, let’s give stay-at-home moms the gift of long-term financial security. You’ve given your family everything. Let us help you take care of yourself, too.
Happy Mother’s Day—from Favored Financial Planning.
