Financial stability is often stated as a key concern when a due date approaches in a new parent’s life. So how to have a maternity leave budget is an article we wanted to cover.

For new mothers and fathers, it’s an exciting time planning ahead for maternity leave and the birth of your new baby. But it’s also a time when you can worry about how much money you will need and where will it be coming from to cover the new expenses and potential cuts in earnings. Financial stability is often stated as a key concern when a due date approaches in a new parent’s life.

We always do our best to support mums on their maternity leave journey and as a returner to work and beyond. But how to have a maternity leave budget can feel like a huge task to start and is it even possible? The good news is yes it is and with a few simple changes you can feel in control of your finances while enjoying the time with your new child.

Know your household income and outgoings

A good idea to add to your to-do list as new parents are to know your current incoming and outgoing this includes personal loans and credit cards. You need to get a handle on your family’s monthly expenses with some basic financial planning you can get yourself on track and even ensure you have some maternity savings if you are wanting to take any months of unpaid leave or unpaid time.

It can also let you know if you need to seek any financial help, this can feel scary but gaining control of your finances is always a good thing.

Once you have this down in front of you along with understanding your maternity pay you will be in a better position to see your financial situation and a realistic plan of action, giving your extra time to enjoy the arrival of your little one and less time worrying about how you will afford it all.

Check Your Out Goings

From unused gym memberships to streaming services, have a look through your outgoings and make sure you know exactly what’s going out of your account. Sounds simple but it might just surprise you. And remember that £3.45 coffee a day soon adds up if you buy 20 in a month each year in excess of £800 it’s a good way to save the pounds!

Check Your Debt

Before you go on maternity leave focus on getting these amounts down and ensuring you on the best rate. You can often find some great 0% interest for 12 to 24 months which can allow you to pay off more through the year. It’s always worth checking you are on the best APR %.

Employment Contract

Make sure you are aware of the maternity benefits and parental leave policies offered by your employer that include paternity leave. Once you know this you will know if you need to budget for any weeks of unpaid leave. If any doubt you can sit down and speak with your human resources department so you are not in for any surprises down the line.

Make A Shopping List Of Those Baby Supplies

As a new parent, it can be easy to get excited about your new arrival and as soon as you step into those baby stores you can see bills going up but with a little planning, you can really save money.

Do some research into the items a new mum really needs, speak with friends look online.
Make a list and stick to it
Wait for the sales for the best deals, if time allows.
Buying second hand can be a great way to save money, obviously some items like a car seat, etc you need to buy new as to know the history on such life-saving items. But toys and clothes can be a great way to save some pounds. Ask your friends if they have any items they don’t need (often friends won’t offer so as not to offend as they may feel you want to buy new!).
If your having a baby shower then having a wish list can be a great way to tick off items. Offering a shop you would like gift cards for can be great that way a few friends can add towards those higher price items.
Often in your family members are able to they are keen to buy some special items for you so why not let them know exactly what you would like so they know its something you really want and will get lots of use out of.

Are You Entitles To Any Benefits

Things are constantly changing and the benefits system such as tax credits and child benefits can feel difficult to navigate and costly if you get them wrong. You can check with your IFA or indeed the government portal has an online questionnaire to help you see what you are entitled to. You’re also entitled to free prescriptions and NHS dental care with the use of a maternity exemption certificate. If you’re pregnant and on a low income you may also be entitled to Healthy Start Vouchers – https://www.moneyadviceservice.org.uk/en is a fantastic resource for research.

Sell Unwanted Items

You may also want to consider selling unwanted items, such as old mobile phones and clothes, to raise some extra money to bulk up your savings. You’ll be amazed at how the pennies can soon add up!

Sort Out Your Insurance Policy Covers

It’s often avoided but it’s vital to make sure as new parents you have good insurance policies on your life and health and a will in place should anything happen to either of you. It’s one of the most vital things to do in a new parent’s life.

Childcare costs

If you are looking to go back to work this is something you need to add to your plan as it’s a very large outgoing upon returning to work. Look at the different childcare options available to you as these costs can have a significant financial impact. Read more about your childcare options here.

Find An IFA

If you don’t already speak with an IFA can be the best way for you to invest any extra income and indeed gain advice on your regular expenses including what may be available to you for childcare costs and additional benefits from the government.

We hope you picked some useful information up in our How To Have A Maternity Leave Budget article.

# How To Have A Maternity Leave Budget

How To Have A Maternity Leave Budget