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Shortly after my daughter, now 14, was born, I got the best advice: “Travel with her soon, ideally when she’s 6 or 7 months. That’s old enough to be engaged but young enough to be portable.”

My wife and I soon whisked her off to Amsterdam. We strolled along canals, sipped white beers with lunch, and explored art and history museums. Contrary to what many new parents believe, it could not have been better timing.

Pros and Cons of Traveling With a Baby

The most obvious perk of traveling with a baby: You don’t need to pay for their airplane seat until they reach age two! Besides that, the upsides and downsides depend on your approach to parenting.

Generally speaking, traveling around the 6-month mark is mostly positive. Before babies start crawling, they don’t struggle to be put down or need a baby-proofed hotel room in which to roam. You can ditch the stroller and opt for a carrier as you explore, and the baby can either nap or observe the scenery.

There’s also a good chance your baby isn’t yet relying on solid food — we actually delayed kickoff by a month or two until after our travels — so there’s no need to hunt down special infant meals. If you’re breastfeeding, keep it up through your trip and you’ll barely need to pack a thing for your baby. Otherwise, just bring enough formula (yes, TSA will allow it through) and you’ll be good to go.

With infants younger than 6 months, you may face more fussiness. And depending on the conditions your little one needs to get to sleep, your schedule may have to revolve around nap times. After they’ve started to crawl or toddle, you’ll want to be more vigilant of potential hazards in your hotel, rental, or host’s home.

When planning your day, keep in mind that picky eaters can take time to satisfy. But what better way to expand your kid’s palate than in another country? Our daughter tried her first taste of pancakes in Amsterdam, while sitting in her first-ever high chair, and it remains one of our favorite early-parenting memories.

By the way, we also have good tips for new parents wondering how families afford to travel.

Pre-Trip Checklist

Before you go anywhere, you’ll want to check a few important items off your to-do list.

Collect Your Baby’s Travel Documents

When you’re traveling within the United States, your baby is good to go. Just be sure to have their birth certificate on hand and, if only one parent is present, a letter of consent from the other, to avoid any custody dramas while you’re trying to enjoy a vacation.

If you’re traveling internationally, via plane, your little one will need a passport just like every other U.S. citizen. When traveling by sea, you’ll want to bring the birth certificate and consent letter from a parent who stays at home.

To apply for your baby’s passport, be sure to start the process as early as possible by filling out form DS-11 , found on the State Department’s site. You’ll be asked for evidence of a birth certificate (and/or other options to prove citizenship, if they apply to you) and a properly formatted photo. This image will be used until your kid is 5 and needs an updated passport — a source of great amusement for them until then, guaranteed.

Recommended: How to Balance the Urge to Travel and the Need to Save

Visit the Pediatrician

Consider bringing your baby to the pediatrician about a month before your departure, and make sure they are up-to-date on routine vaccinations. Additional shots may be required depending on your destination.

Check the Centers for Disease Control and Prevention (CDC) website for other travel alerts. And be sure to pack any medications your child might need, such as baby acetaminophen in case of teething pain or fever.

(By the way, this article will tell you what to do if you or your baby get sick on vacation.)

Pack or Reserve Baby Items

Think about what you might need at your destination: bassinet, Pack ‘n Play, etc. You may be able to call to request larger items at your hotel or rental, attached to your reservation. If you plan on renting a car, make sure you reserve a car seat.

If you don’t already have a baby-wearing sling or pack that’s light and comfortable, consider investing in one. The structured Ergobaby and Tula are two excellent options. If you’re not a baby-wearing type and your baby is old enough to sit up, think about getting a lightweight folding stroller (Maclaren has a range of great options) that’s easy to carry and maneuver (and should meet all carry-on specifications). Leave your souped-up fancy version at home.

Flying With a Baby

What to Bring

The things you’ll need when traveling with a baby are not so different from what you need for a day in the park. Besides a stroller or carrier, you’ll want to make sure you’ve got enough amusements on hand to get your baby (and those around you) through the flight without much drama. I remember getting great new-parent tips from others about flying, including the advice to bring a small bag stuffed with distractions: board books, her Sophie the Giraffe teether, a light-up rattle. It was an excellent idea, even though she wound up happily playing with an empty plastic water bottle for much of our time in the air — anything that works!

If you’ve got a toddler who likes to snack, have plenty of their favorites with you (for yourself, too, as they’re not the only one who needs to be distracted from grumpiness). Other useful items to bring in your carry-on: plenty of diapers, wipes, a travel diaper pad to use in the cramped bathroom (not fun), formula, and a small cozy blanket.

Recommended: Air Fares: What You Need to Know

Dealing With Air Pressure Changes

When flying with a baby, take-off and landing are likely to be the toughest parts, due to air-pressure changes in the cabin that can plug up their little ears. Start breastfeeding or bottle-feeding a few minutes before the actual take-off or landing. The sucking and swallowing actions will help their ears keep popping. Your little one will be blissfully unaware that they’re supposed to start screaming.

At Your Destination

When traveling, think of your baby as a mini-version of you, and take all precautions (and then some) that you’d take for yourself. For summer travel in warm climates, apply mosquito repellant, use plenty of sunscreen (don’t forget to reapply!), and dress them in long-sleeved rash guards while swimming or on the beach. In new countries, avoid tap water.

Consider nap times, and where you’d like to be to help facilitate your baby falling asleep in a strange environment. Finally, be prepared to adjust your plan as you go to accommodate any fussiness and meltdowns.

Recommended: Responsible Tourism: How Travelers Can Support Local Economies

The Takeaway

Don’t stress out about traveling with your infant — enjoy it! Now, when your little one is still portable and not yet making their own demands, might be your last chance to feel free as a bird while exploring a new place. No, they won’t remember the experience, but you will. And you’ll have the pictures and stories to prove it.

SoFi Travel has teamed up with Expedia to bring even more to your one-stop finance app, helping you book reservations — for flights, hotels, car rentals, and more — all in one place. SoFi Members also have exclusive access to premium savings, with 10% or more off on select hotels. Plus, earn unlimited 3%** cash back rewards when you book with your SoFi Unlimited 2% Credit Card through SoFi Travel.

Wherever you’re going, get there with SoFi Travel.

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When you use your SoFi Credit Card to make a purchase on the SoFi Travel Portal, you will earn a number of SoFi Member Rewards points equal to 3% of the total amount you spend on the SoFi Travel Portal. Members can save up to 10% or more on eligible bookings.
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A jumbo loan is a mortgage that is larger than the loan-servicing limits set by the Federal Housing Finance Agency (FHFA). If you know you need a large loan to cover a higher home mortgage loan, you might be wondering how to qualify for a jumbo loan.

Jumbo loan qualifications are more stringent than conforming conventional loans. Because a jumbo loan is a nonconforming loan, banks take on more risk as they are not able to sell the loan to government-sponsored enterprises Fannie Mae and Freddie Mac. Since the loans are not guaranteed by the government, lenders are more cautious about the type of borrowers they do business with.

What this means for your money: You need conditions to be pretty optimal to qualify for a jumbo loan. But it can be done. Learn more here, including:

•   How to qualify for a jumbo loan

•   What factors lenders consider for jumbo loans

•   The jumbo loan qualification process

•   How to decide if a jumbo loan is right for you

Jumbo Mortgage Requirements

The current limits for jumbo loans are defined as exceeding $726,200 for single-family homes, except in Alaska, Hawaii, and some federally designated markets that are considered high-cost. In those areas, the limit that’s exceeded is $1,089,300 since these locations tend to have pricier housing markets.

Jumbo mortgage requirements are similar to conventional conforming loan requirements, but there are some key differences that make them harder to qualify for.

A High Credit Score

Experts recommend a credit score of 700 or above for jumbo loan borrowers. A higher credit score when buying a house is indicative of a borrower’s behavior with credit and how likely they are to repay the loan. A higher credit score is needed for the higher loan amounts of a jumbo loan. That lofty score can help the lender feel more secure that you’ll pay back the amount you borrow.

Cash Reserves

A cash reserve is how much liquid money you have at your disposal. What counts as liquid money can vary from lender to lender. For example, some will allow a percentage of vested 401(k) funds to count toward the reserve requirement. Others do not.

Because jumbo loans are so large, lenders look for cash reserves in your account to guard against default. For the best jumbo loan terms, lenders can require as much as 12 months of reserves.

A Low Debt-to-Income Ratio

A debt-to-income ratio is the amount of income you make relative to the amount of debt obligations you have. If you have what is considered too much debt, the lender will not offer a loan to you. With jumbo loans, a healthy DTI ratio is essential to qualify for the mortgage. A DTI ratio below 43% is recommended or possibly a lower figure.

What Does the Jumbo Qualification Process Include?

When you’re looking at jumbo loan requirements and the qualification process, there are some things you should keep in mind. Here, what’s needed to get a mortgage:

Documents Required for Jumbo Loan

When you apply for a jumbo loan, the lender will look to verify the information you provided. Some documents you may be required to provide include:

•   Two years of tax returns

•   Profit & Loss (P&L) statement if you’re a business owner

•   Pay stubs

•   Bank statements

•   Documentation for other income

Loan-to-Value Ratio Evaluation

In addition to your application, the jumbo loan will require an appraisal of your property to ensure they’re not lending too much on the home (that is, more than it’s worth). This appraisal will ensure the home’s price is not too high and determine that the loan-to-value ratio (LTV) is within its guidelines.

Evaluating How Jumbo Down Payments Will Impact You

How much you put down on the home of your dreams will impact what loan you qualify for. If you’re able to put down enough, you may be able to forgo the jumbo loan requirements and get into a conforming conventional loan.

Is a Jumbo Mortgage Right for You? Questions To Ask

When it comes to making a decision on a jumbo loan, it’s helpful to ask yourself some questions that can help determine if a jumbo loan will work for you.

Do I Have Good Credit?

Ask yourself if your credit is strong enough to qualify for a jumbo loan. These mortgages do come with higher loan amounts and higher payments, and a good credit score range (over 700 typically) can help you get the best terms possible to qualify for a jumbo loan.

Do I Have a Low DTI and High Cash Reserves?

It’s important to have a low debt-to-income ratio and ample reserves to qualify for a jumbo mortgage, as discussed above. While some lenders may go up to as high as a 43% DTI, others will want to see a lower number.

Can I Prove I’m in Good Financial Health?

Qualifying for a jumbo mortgage goes beyond the numbers. Can you demonstrate to the lender that you’re able to continue making payments? Do you have a consistent job history? Are all the other financial factors in your life lined up so you can afford the mortgage?

Is the Property Value High Enough for a Jumbo Loan?

The jumbo loan value minimum (and conforming loan limits) is $726,200 for most areas in the U.S. If your mortgage is below this amount, you’ll want to look at financing with a conforming conventional loan instead. In high-cost areas, the home would have to hold a value of more than $1,089,300.

Do I Have Enough Money Saved?

A down payment on a property that merits a jumbo loan will often be a significant amount of cash. And while some closing costs are a flat fee that won’t go up, many are labor-intensive or percentage-based (3% to 6% of the loan amount), so your jumbo loan closing costs are larger than for a conventional, conforming loan.

Recommended: 18 Mortgage Questions for Your Lender

The Takeaway

If you are in the market for a high-value home, a jumbo mortgage can help you make it your own. However, you will need to meet the loan requirements, which may be somewhat more demanding than those for a conforming loan. By focusing on optimizing your credentials and financial profile, you can work to secure the mortgage that makes your home-ownership dreams come true.

When you’re ready to take the next step, consider what SoFi home loans have to offer. Jumbo loans are offered with competitive interest rates, with no PMI, and down payments as low as 10%.

SoFi Mortgage Loans: We make the home loan process smart and simple.

FAQ

Is it harder to qualify for a jumbo loan?

Yes, jumbo loans are harder to qualify for. You will need a larger down payment than you would with a conforming loan, a higher credit score, a low debt-to-income ratio, more cash reserves, and a tighter loan-to-value ratio.

What credit score do you need for a jumbo loan?

For a jumbo loan, you may want to aim for a credit score above 700.

Do jumbo loans require a 20% down payment?

It is possible to obtain a jumbo loan with a down payment as low as 10% or possibly even lower.

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The hardest part is knowing where to start. We’ll walk you through planning timelines, money-saving tips, and ideas for when, where, and how long your reunion trip should be.

Benefits of a Family Reunion Trip

The benefits of a family reunion trip are many: It’s a rare chance to reconnect, strengthen relationships, and make new memories. Sure, you’ll see one another at the next wedding, graduation, or funeral, but a dedicated family reunion is an opportunity for multiple generations to simply be together, without the pressure of pre-scheduled events.

Family reunions are especially important for the oldest and youngest family members. Grandparents and great grandparents won’t be around forever. Little ones may not immediately appreciate the time they spend with older relatives, but they will be sure to appreciate these memories — and group photos! — years down the line.

How to Plan a Family Reunion Trip

Organization is crucial when it comes to destination family reunion planning. After all, you’re planning a vacation for potentially dozens of people of varying ages and interests. Maybe you’re a spreadsheet and travel aficionado, in which case, bon voyage! If not, read on for everything you need to consider when planning a family reunion trip, then divide and conquer.

Where, When, and How Long: Guidelines

Every family has diverging interests. Maybe the younger generation love long hikes, but Uncle Mike prefers antiquing, your grandmother could splash in the pool all day, and your brother is practically a vampire. A well-planned destination family reunion vacation will offer something for everyone.

Recommended: How Families Afford to Travel

How Long Should A Family Reunion Trip Be?

Is your family thinking of a week-long vacation or a weekend getaway? Keep in mind that not everyone has the same vacation time from work, and some people may have other obligations they must allocate vacation days to. It’s also important to find out which families may be traveling with pets.

The length of a reunion is often determined by budget. Whoever the lead organizer is should simply ask the group (more on how to do that below) what everyone’s maximum budget is and go from there.

When and Where to Take a Family Reunion Trip

Agreeing on a time of year for your reunion may be easier than you think. First, take into account how many attendees have school-aged kids. For them, winter and summer breaks will be the most convenient times to travel, but also the most expensive. Instead, consider using a shoulder-season school holiday, like Indigenous Peoples’ Day in October or Memorial Day in May, and taking a long weekend trip. Bonus: The weather in many destinations will be pleasant, but prices won’t yet be sky-high.

When evaluating destinations, contemplate: How many people are coming? Will you fly or drive? Is it easier to stay somewhere walkable, or does the group prefer renting cars? Ask select family members for their top (realistic) destination ideas.

Recommended: How to Balance the Urge to Travel and the Need to Save

How to Save On A Family Reunion Trip

Accommodations tend to take a big bite out of travel funds. For most groups, sharing one or more houses or apartments will be much more affordable than booking hotel rooms. In Montana, for example, you may well find two nearby houses that can hold a dozen people each. In Fort Lauderdale, you’re more likely to find three- to four-bedroom condos.

Sharing accommodations can also make it easier to prorate costs, allowing those on a tight budget to select a smaller room or pull-out couch. (Also keep in mind credit card rewards, which are sometimes applicable to vacation home sites.)

Other advantages of a rental house are space to spread out, doors that can be closed when kids are sleeping but adults are up late talking, and the ability to prepare meals — another huge cost saver.

Family Reunion Planning Timeline

Your planning timeline will vary depending on your destination. If the gang is flying to Hawaii from across the country, you’ll want to book flights many months in advance and keep your eye on hotel prices. If everyone is driving, you can book accommodations a few months out and then wait to plan activities.

6–12 months out: Use a free online poll tool or the poll feature in messaging apps like Whatsapp and Telegram to vote on when and where to go. The group chat can be your best friend and worst enemy (btw, you may want to mute it), but it is useful for soliciting opinions. It’s important to confirm budgets and expectations now.

4–5 months out: Once a destination is decided, pull a few accommodation options to fit the group’s needs, whether that’s a block of hotel rooms, a few condos, or a rental house. Reconfirm everyone’s budget, as financial circumstances can change.

If your family reunion trip requires flights, compare the price of a ticket in miles vs. cash so you can decide whether to use a credit card that gives credit card miles vs. cash back.

2 months out: Keep the momentum going by booking any activities, whether you need lift tickets, plan to take tours, or want to go snorkeling. With major logistics out of the way, this is the fun part.

1 month out: Everything that needs to be booked in advance is done, and the countdown is on. Now is the time to look into nearby grocery stores, where people might eat if they arrive late, whether strollers and carseats can be rented or should be packed, etc.

Do’s and Don’ts for a Fun, Memorable Reunion

•   Don’t overschedule your family reunion trip: Try booking only one major activity per day for those who want to participate, whether that’s a beach excursion, a museum, or a walking tour.

•   Do respect peoples’ natural rhythms: Aunt Sue may be ready for 5am bird-watching, but your college-age cousins are more likely to roll out of bed several hours later. Everyone is more cheerful when they get enough sleep, so don’t wake people at the crack of dawn with a megaphone.

•   Don’t feel compelled to capture every moment. The pressure to take a million perfect photos is very real, but try to live in the moment. You may not see some of these people again for several years.

•   Bring an instant camera: These tangible memories are the perfect family reunion souvenir, and instant camera film colors are universally flattering.

•   Pack games: Uno, travel Scrabble, Code Names, even simple packs of cards provide entertainment after dinner and on rainy afternoons.

•   Make videos: Film older relatives talking about their lives. Prompt them with questions about their childhood, who their friends were, what they ate, what they dreamed their adult lives would be. This is a wonderful way to memorialize older generations.

After the Event

•   Create a place for everyone to share photos, like Google Drive or Dropbox.

•   Print a few of the best photos and mail them to your family with a short note; it’s a treat to get snail mail.

•   If people have suggestions for the next family reunion trip, note them.

•   Use an expense tracker to organize who owes whom for shared costs.

The Takeaway

A family reunion is a unique chance for relatives across generations to meet for the first time or reconnect. Summer is generally the easiest time for families with young kids to travel, but it’s also the most expensive. If your family reunion trip works for a long weekend within driving distance, this is the most budget-friendly option. While it takes some coordination — and maybe a little stress — be assured that it is worth the trouble.

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Having children can be rewarding, but thanks to higher rates of inflation, it’s also getting more expensive. Today, parents can expect to spend around $310,000 to raise a child from birth up to age 17, according to a recent Brookings Institution analysis of data from the USDA.

If you’re considering growing your family, understanding all the costs involved can help you prepare financially. Let’s take a closer look at the average annual cost of raising a child in the U.S. and how that figure has changed over the past two decades.

What Is the Cost of Raising a Child in the US in 2022?

Adjusting for higher future inflation, the Brookings Institution estimates it costs $310,605 for a middle-class family to raise a child born in 2015 up to age 17. Of course, the amount you end up spending depends on a number of factors, including household income, the cost of childcare, and where you live.

If you want more personalized insights to help you plan your spending, consider using an online calculator.

A Comparison of the Cost of Raising in Child in 2000 vs 2022

The average cost of raising a child in 2000 looked much different than it does now, thanks in large part to the recent surge in inflation rates.

In 2000, a typical middle-income family could expect to spend $165,630 to raise a child to the age of 17. In 2022, that same family would spend $310,605, according to the Brookings Institution analysis, which adjusted the USDA’s most recent estimates for higher expected future inflation. Note that this amount doesn’t include extras like summer camp or birthday parties, nor does it factor in the cost of college.

Top Expenses of Raising a Child in 2022

When it comes to the average cost of raising a child from birth to 17, middle-income families can expect to spend around $17,255 per year. The following table shows where that typically money goes.

Cost category	Average percent (%) of spending
Housing	29%
Food	18%
Child care and Education	16%
Transportation	15%
Healthcare	9%
Miscellaneous	7%
Clothing	6%

Source: USDA’s Expenditures on Children by Families, 2015

Top Expenses of Raising a Child in 2000

Average middle-income parents in 2000 spent around $9,201 per year on child-rearing costs. As the chart below shows, housing and food were the biggest expenses. But compared to 2022, parents spent less on other things, like healthcare and child care and education.

Cost category	Average percent (%) of spending
Housing	33%
Food	18%
Transportation	15%
Miscellaneous	11%
Child care and Education	10%
Healthcare	7%
Clothing	6%

Source: USDA Expenditures on Children by Families, 2000

How to Reduce the Cost of Raising a Child Today

No matter when you become a parent, you’ll likely have some major expenses. The good news is, it is possible to save money while raising kids. Here are some tips to consider:

•   Look for ways to lower housing expenses. Housing is the number-one expense for families, so finding ways to trim expenses there can really help you save. For instance, if you’re planning to move, you may want to expand your search to include smaller, less expensive homes located in neighborhoods with lower property taxes.

•   Purchase secondhand clothes. Kids tend to outgrow their clothing quickly. Rather than spend a lot on new outfits, shop secondhand whenever possible. Tag sales, thrift stores, and consignment sites are all good places to explore.

•   Make the most of your local library. Are expensive streaming subscriptions eating away at the family budget? Consider canceling some of those streamers and heading on over the local library. Not only can you check out books and audiobooks for free, you can also rent DVDs and enjoy free events.

•   Shop generic. When it comes to basics like diapers, toiletries, and household cleaners, skip the fancy brand names and go for less-expensive generic versions.

Recommended: From One Child to Two: How to Financially Plan

More Financial Tips for Parents

Whether you’re looking to start a family or add to your brood, there are also some smart financial habits you can start today that can make it easier to afford raising children. As a bonus, these habits can also help you teach your child about money management.

•   Pay down debt quickly. When a borrower takes on debt, they repay not only the amount they borrowed, they also owe interest and fees to the lender in exchange for borrowing the money. That’s why it’s so important to pay off debt quickly. The sooner you erase your debt, the less interest you’ll have to pay.

•   Create a budget that grows with your family. Coming up with a budget — and adapting it to meet your current needs — can help your finances roll with whatever changes life has in store. It’s a good idea to sit down once a month to evaluate what’s working in the budget, what can be improved, and what new expenses are on the horizon. A spending app can also help you keep tabs on where your money is going.

•   Prioritize savings. When you’re raising a family, it’s easy to let long-term savings goals fall by the wayside. One way to make saving second nature is to sock away a portion of each paycheck into a savings account or investment account. By paying yourself first, you’re better positioned to reach your financial goals, whether that’s putting multiple children through college, investing, or saving for retirement.

Recommended: Creating an Investment Plan for Your Child

The Takeaway

Having a family can be rewarding — and expensive. The average middle-class family today will pay around $310,000 to raise a child to age 18. Housing, food, and child care/education are among the top three biggest expenses. The good news is, there are ways to manage expenses and still save for long-term financial goals.

If you need help organizing your finances, consider using a money tracker app. The SoFi app connects all of your accounts in one convenient dashboard. From there, you can see all of your balances, spending breakdowns, and credit score monitoring, plus you can get other valuable financial insights.

Stay up to date on your finances by seeing exactly how your money comes and goes.

FAQ

How much does it cost each year to have a child?

The average middle-class family will spend around $17,255 per year to raise a child.

How much does it cost to raise a child to 18 in 2023?

According to a 2022 Brookings Institution analysis of data from the USDA, a middle-class family will spend $310,605 to raise a child to the age of 18.

How much does a baby cost on average?

The average middle-income household family can expect to spend around $12,680 a year to raise a child from birth to 2 years of age, according to the most recent USDA data.

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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Despite progress, women, especially mothers, are still fighting hard to achieve equality in the workforce. According to a 2022 Financial Health Network study, 70% of women with children under the age of 18 say they have made significant career changes due to parenting responsibilities, compared to just 55% of men. Those changes include reducing hours, taking a leave of absence, switching to a less demanding job, and quitting a job.

This career instability can have a significant impact on women’s short-term financial wellness, as well as their long-term net worth and future security. At the same time, women leaving the workforce because of work/life balance issues has been a contributing factor in the persistent labor shortage.

One way employers can help women regain ground —- and help solve hiring and retention issues — is to tailor benefits to better fit their needs, priorities, and concerns. Companies that offer benefits packages that help address the gender gaps in financial wellness not only help women stay and advance in the workplace, but also promote a more equitable and productive workforce.

The Great “She-Cession”

Women were struggling with work/life balance and workplace inequities well before the COVID-19 pandemic. But the crisis brought these issues into stark relief. According to a report by the National Women’s Law Center, more than 2.3 million women left work during the 12 months ending in February 2021 compared with 1.8 million men.

Indeed, the pandemic-generated recession was quickly dubbed a “she-cession,” as more women than men left or lost their jobs compared to previous recessions.

Why were women so disproportionately affected? One reason is that many women work in hospitality, education, healthcare, retail, and other industries that were severely impacted by the pandemic. Another is that, as schools shut down, women were often the ones who pulled back from working in order to focus on the care and “Zoom schooling” of their children.

While many women have since returned to the workforce, the recovery has been uneven. Issues like resume gaps, the fact that women typically earn less than men, coupled with the persistent lack of affordable childcare continue to take a toll on the financial well-being of female workers.

What Employers Can Do

HR pros have been working on evening gender disparity for decades, and much progress has been made. But the pandemic shed new light on the stubborn underlying inequities that continue to burden employers and female employees alike.

Employers may find that making adjustments and additions to their benefits packages can help promote more gender equity at work while also allowing them to attract and retain top female talent. Here are some strategies you may want to consider.

Recommended: Measuring the Financial Well-Being of Your Workforce

Rethink Maternity Leave

paid parental leave your firm can offer, generally the better. Some companies are expanding leave for birthing parents beyond 12 weeks, offering as much as 26 weeks. Others are providing additional weeks of paid leave to parents of newborns who spend time in the neonatal intensive care unit.

A generous paid parental leave program not only helps attract female workers but also increases the likelihood that your existing women employees will return to their jobs after having or adopting a child, as opposed to dropping out of the workforce —- and leaving you with a new opening to fill.

Another question to consider is whether your parental leave policies apply to all types of families and parents, such as non-birth mothers, foster parents, and parents who use surrogates. Parental benefits provide an opportunity for building your inclusive benefits strategy.

Create Real Opportunities for Advancement

For every 100 entry-level men promoted to management, only 87 women are promoted, according to McKinsey & Company’s Women in the Workforce 2022 report. With little room for advancement and undervalued work, many women are leaving their employers for better opportunities elsewhere.

One way to counter this trend is to offer female employees a path to advancement through education and up-skilling/re-skilling opportunities. You might do this by offering tuition assistance programs and/or access to free (or discounted) training and certification programs. This can help female employees get ahead in their careers, earn more and, in turn, achieve greater financial stability. It can also propel women into the roles of the future where they are currently underrepresented, like data science, software development, and engineering.

Other initiatives that can improve female career mobility include: formal mentorships, sponsorships, women’s employee resource groups (ERGs), leadership circles, and career coaching workshops. If your company offers these programs, you’ll want to make sure women employees know about and have easy access to them.

Address the Childcare Crisis

When child-care centers shut down during the pandemic, nearly one-third of workers left the industry. Despite the post-pandemic reopening of offices, schools, and other businesses, employment in the childcare sector has not fully bounced back. That translates into many parents, especially moms at lower income levels, staying out of or exiting the workforce simply because they cannot find affordable childcare.

Employers can help fill the gap in several ways. On-site childcare is the most accommodating benefit. But on-site care is a big investment of infrastructure and resources that realistically only a small group of major employers can provide.

One alternative is to offer some type of emergency or backup child care support. Some companies do this by partnering with local daycare facilities and providing access to free or discounted childcare when a regular provider falls through. Other firms are offering employees stipends for online services, such as Care.com and SeekingSitters.com, that provide access to sitters at short notice.

Being open to and evaluating childcare support as you encourage your employees to come back to the office can be just the prompt reluctant employees need to embrace reentry.

Consider Returnships

Many employers are dealing with labor shortages. At the same time, there is a large pool of untapped talent among women who have fully or partially left the workforce. Many of those women want to return to work but find the gaps in their resumes and lack of current skills are holding them back.

To address both problems at once, some companies are offering “returnships.” Pioneered by finance leaders Goldman Sachs and Morgan Stanley, these are internship programs that give returning caregivers the opportunity to brush up their skills or learn new ones. Returnships typically run for a few months, offering training, experience, and networking opportunities to workers – often mothers – who’ve been out of the workforce for an extended period of time.

Returnship programs not only give women who dropped out of the workforce a viable onramp, they also give employers a way to vet talent before making an official hire.

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Address Student Debt

Student loan debt impacts nearly 43 million Americans and a disproportionate number are female. According to EducationData.org, women hold nearly 60% of all outstanding student debt and, despite making higher payments than men, take an average of two years longer to pay off their student loans. Female borrowers are also more likely than their male peers to have student loan debt from graduate school.

Student debt can have a negative impact on any employee’s financial (and overall) well-being. And right now, borrowers are feeling particularly uneasy, thanks to unknowns surrounding the return to repayment for federal loans and potential loan forgiveness. What is certain, though, is that student loan repayment benefits continue to grow in popularity and effectiveness. And, they may be particularly beneficial to female employees.

HR leaders will also want to keep in mind that employers can offer up to $5,250 in tax-exempt student loan repayment benefits through 2025, thanks to the CAREs Act of 2020. What’s more, the recent passage of the SECURE Act 2.0 allows companies to provide employees with a match on their retirement plans for making student loan payments starting in 2024. This can be a stand-alone offering, or part of a broader employee benefits program.

Offer Flexible, Women-Friendly Financial Wellness Benefits

Only one in five working-aged women are considered financially healthy versus nearly one in three working-aged men, according to the Financial Health Network’s 2022 report. The study also showed that women lag behind men in emergency and retirement savings. Only 42% of working-age women said they were confident they will have enough money to live off of in retirement, versus more than half of working-age men (53%).

High levels of debt, trouble making ends meet, worries about saving enough for the future (particularly with gaps in employment), all add a disproportionate amount of stress on women. Financial stress can impact every aspect of women’s lives, including productivity and happiness at work.

HR pros can make a huge impact on women employees by offering personalized, adaptive wellness benefits, such as debt management, emergency savings, tuition savings, retirement planning programs, and financial education. These benefits can help female employees plan and save for the future, feel less stressed about their finances, increase their focus and productivity on the job, and, importantly, change their financial lives for the better.

Recommended: The Future of Financial Well-Being in the Workplace

The Takeaway

Women are a vital part of any employer’s workforce. Benefits packages designed to address women’s specific needs can help employers attract and retain talented female employees. They can also help guarantee women, especially moms, have access to an equal playing field and a secure financial future.

SoFi at Work offers employers the benefits platform, education resources, and financial counseling that can help you assemble packages that help you increase employee productivity, loyalty, and overall well-being.

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Photo credit: iStock/jacoblund

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Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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