Major news outlets are reporting the pandemic has increased instances of women leaving the workforce to care for children
Recently major national news outlets Bloomberg, The Wall Street Journal, CNN, The New York Times and more have published stories related to the long-term impact of a parent – specifically women – leaving the workforce to care for their children.
This storyline is not new, but the COVID-19 pandemic has led to a significant increase in families who have opted – many by force, not choice – to take children out of traditional environments they had been relying on for early education and care while they continued and grew their careers.
While many plan to return to their career when circumstances change, the historical data shows that in at least 50% of cases that doesn’t happen. And the vast majority of those are women.
This has always been an issue for parents, and particularly women who truly desire to continue their career and only leave out of perceived necessity. The choice can lead to a long-term negative impact on a family’s lifetime income. Of the roughly 50% of parents who do return to work full-time, they earn $700,000 less on average over their lives, and their starting wage upon returning is typically 10-25% below the salary/income level when they left employment.
This isn’t the only reason we created the KidVantage Loan specifically for child care, but it is a big one. The pandemic makes the option even more important for families. By lowering monthly payments by up to 60% and allowing families to pay over time, parents have the financial flexibility to choose the child care they want while continuing their careers. The long-term benefits to their careers, income, and children’s development are significant and undeniable.