Easy ways to budget for maternity leave

Posted: Wednesday March 10 2021

By: Abbie Coleman

Expecting a baby is exciting, but it can also be a daunting time from a financial perspective. Aside from the sleep deprivation and responsibility, it’s likely that your finances will also be under more pressure. With this in mind, I thought it would be a good idea to consider the how to get on the front foot with your money, before your bundle of joy arrives.

Spending Analysis

A really good place to begin is to know how much you currently spend. If you don’t have a budget, I would advise that you start to look at your expenditure in more detail. Dividing this into categories such as ‘essential’ and ‘discretionary’ would be a sensible starting point. If you’re good on Excel then a spreadsheet can be a great way to keep a record of this – but you also can’t go wrong with good old pen and paper!

By looking at what you spend now, you’ll be in a better position to consider how this may change when you have another person to cater for. There may be items that you can cut back on or stop altogether – particularly if they are unnecessary. If it’s your first child, why not speak to friends who have had babies and pick their brains to find out what are vital purchases and what they wish they hadn’t bought. This way you can avoid making expensive mistakes.


Reducing Debts

Additionally, if you have any debts, you could consider reducing these before you take a break from work. That way you could have more disposable income.


Employment benefits

Looking at the maternity benefits offered by your employer will also ensure there are no surprises regarding how long you are paid for before these earnings reduce. It will also support you in identifying any shortfall in income you may have.


Identifying savings opportunities

 Once you have spotted any deficit, you can try and save some money while you’re still working. These savings will help you to top up your maternity pay while you’re off work. Setting up a designated savings account for this will help keep you focused and separate the money, so you can clearly see your progress.


Check entitlement to government benefits

 Another important area to take into account is exploring any benefits that could be available, such as tax credits and child benefit. 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!

Finally, it’s important to check your bills and ensure you are getting the cheapest rates for everything. Using comparison sites such as Money Saving Expert will help make this easier.

In a nutshell, the more planning you can do in advance of the little one’s arrival, the simpler it will be to enjoy your new addition and not feel stressed out about your finances.

Budget for maternity leave Jan 2020.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.


Thank You,
Louise Woollard


Louise Woollard Financial is a trading name of Louise Woollard LLP, which is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the group’s wealth management products and services, more details of which are set out on the group’s website www.sjp.co.uk/products. The ‘St. James’s Place Partnership’ and the titles ‘Partner’ and ‘Partner Practice’ are marketing terms used to describe St. James’s Place representatives.