I just had my first baby and don't want to go back to work. Is quitting for a year a bad idea?

By Aditi Shrikant

'I really don't want to miss my baby's first year'

"At what point does it make more financial sense to stay at home and take care of my kid versus going back to work?" (Photo subject is a model.)

Dear Dollar Signs,

I am in my 30s and I just had my first baby. I have a full-time job, but now I'm torn about what to do next. I'd rather stay at home and enjoy my baby's first year, but maternity leave is so short. I don't want to go back to work, but if I do, I need to find childcare for my kid.

At what point does it make more financial sense to stay at home and take care of my kid versus going back to work? What would be the income I need to make, such that going to work brings in more money than being a stay-at-home mom and avoiding childcare costs?

I am also aware the economy isn't great and I'm worried I won't be able to easily re-enter the workforce if I take a year off.

I know I'm asking for a lot, but I really don't want to miss my baby's first year. What do I do?

Baby Blues

If you're just starting out on your money or career journey and have questions about how to navigate your finances, we want to hear from you. Write to Dollar Signs, MarketWatch's new advice column, at dollarsigns@marketwatch.com.

Dear Baby Blues,

You are right to be concerned. Parents who take time off to raise their children do have trouble re-entering the workforce. Research shows that employers think that those who "opt out" of their jobs aren't ideal employees, and are therefore more hesitant to hire them.

And of course, there is the "motherhood penalty" - the phenomenon that women experience slower wage growth and career advancement once they become mothers.

But memories with your child are invaluable. It's hard to pick a career back up, but it's impossible to get back time with your family.

When it comes to money, the formula is pretty simple: Does your take-home pay exceed how much you're spending in childcare? If so, then keeping your job does make more financial sense.

You will also have to factor in retirement and healthcare benefits.

"It's a year you're not putting anything into the Social Security system," says Carolyn McClanahan, a physician-turned-certified financial planner. "It's also a year you're not putting any money into retirement plans." (Your Social Security benefits are based on your 35 highest-earning years.)

If you've been receiving an employer match, you will be losing out on that as well. Any employer-provided health insurance or benefits will also now be an out-of-pocket expense unless you have a spouse who can add you to their plan.

By age 35, you should have about two times your salary saved, according to Fidelity. If you've contributed aggressively to your retirement account and have more than this amount, taking a year off might not throw you off track. However, as you might know, compounding interest does mean that you will be giving up exponentially more money than what you actually put into your account.

One reason employers are hesitant to hire those who have been out of the workforce for a prolonged period of time is that they believe skills atrophy. This perception, even if it's not accurate, is what you'll want to combat should you choose to take a year off.

You can do this by taking up some freelance work or volunteering. Obviously, you won't be doing this full time, but it's important to be able to show a potential employer that you have been working whatever mental muscle they believe might be out of practice.

"You need something to put on your resumé to make it look like you're continuing to use your brain," McClanahan says.

You'll also want to continue to network. Keep in touch with old co-workers, even if it's just a quick email. These connections can keep you updated on what's going on in your industry and serve as resources once you do start applying for jobs again.

If you can make it work financially, my advice is to take the time off. No one dies wishing they had worked more than they needed to - but plenty do wishing they had spent more time with their loved ones.

Write to Dollar Signs at dollarsigns@marketwatch.com.

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-Aditi Shrikant

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08-27-26 1440ET