Parents News Forum
Top tips on saving for maternity leave
Quote from Fergus McCarthy on October 14, 2024, 12:01 pmTips from a financial expert
Preparing for maternity leave is an exciting but financially challenging time for many families. While maternity leave allows new mothers to bond with their baby, it usually comes with a significant reduction in pay. Christie Cook, a Financial Expert at Hodge Bank, shares her top tips for saving money before and during your leave.
Understand maternity leave pay
The majority of new mothers will not receive full pay during maternity leave. For the first six weeks, you’ll receive 90% of your average earnings. However, after this period, you’ll only get a statutory payment of £184.03 per week or 90% of your average earnings, whichever is lower.
With this reduced income, it’s essential to start planning and budgeting early.
Start budgeting
One of the most effective ways to prepare financially is by budgeting. Christie suggests cutting unnecessary expenses, such as takeaways. “A £30 takeaway could buy you 99 nappies, which lasts just eight days for a newborn. Consider how cutting back could boost your savings,” says Christie.
Sticking to a shopping list and avoiding branded products also helps reduce unnecessary spending.
Sell unwanted items
Prepare for your baby’s arrival by clearing out unwanted items. Christie advises, “Selling unused items on platforms like Facebook Marketplace or Vinted can make extra space for baby essentials while giving you a financial boost.”
The extra cash could go towards baby clothes, nappies, or other necessities.
Look for free activities
Being on a budget doesn’t mean you need to stay at home all the time. “There are plenty of free or low-cost activities you can enjoy,” Christie says. “Winter walks, homemade hot chocolate, and free events found on sites like Eventbrite can be enjoyable ways to spend time without breaking the bank.”
Saving money on outings allows you to allocate funds for baby-related activities during your leave.
Review your subscriptions
Subscriptions can add up quickly. Christie recommends reviewing your subscriptions every few months. “If you’re subscribed to several streaming services but only use one, consider cancelling the rest. This simple step can save you £30 or more a month,” she says.
Consider switching to free workout videos online rather than maintaining an expensive gym membership.
Take advantage of interest
If you plan early, open a Fixed Rate ISA or a high-interest savings account. “While you can’t touch your ISA for at least a year, if you start saving during pregnancy, the interest will boost your savings by the time you need it,” Christie explains.
The money saved, along with interest, can help cover unexpected expenses during your maternity leave.
For more financial advice and tips from Hodge Bank, sign up for their monthly savings newsletter.
Tips from a financial expert
Preparing for maternity leave is an exciting but financially challenging time for many families. While maternity leave allows new mothers to bond with their baby, it usually comes with a significant reduction in pay. Christie Cook, a Financial Expert at Hodge Bank, shares her top tips for saving money before and during your leave.
Understand maternity leave pay
The majority of new mothers will not receive full pay during maternity leave. For the first six weeks, you’ll receive 90% of your average earnings. However, after this period, you’ll only get a statutory payment of £184.03 per week or 90% of your average earnings, whichever is lower.
With this reduced income, it’s essential to start planning and budgeting early.
Start budgeting
One of the most effective ways to prepare financially is by budgeting. Christie suggests cutting unnecessary expenses, such as takeaways. “A £30 takeaway could buy you 99 nappies, which lasts just eight days for a newborn. Consider how cutting back could boost your savings,” says Christie.
Sticking to a shopping list and avoiding branded products also helps reduce unnecessary spending.
Sell unwanted items
Prepare for your baby’s arrival by clearing out unwanted items. Christie advises, “Selling unused items on platforms like Facebook Marketplace or Vinted can make extra space for baby essentials while giving you a financial boost.”
The extra cash could go towards baby clothes, nappies, or other necessities.
Look for free activities
Being on a budget doesn’t mean you need to stay at home all the time. “There are plenty of free or low-cost activities you can enjoy,” Christie says. “Winter walks, homemade hot chocolate, and free events found on sites like Eventbrite can be enjoyable ways to spend time without breaking the bank.”
Saving money on outings allows you to allocate funds for baby-related activities during your leave.
Review your subscriptions
Subscriptions can add up quickly. Christie recommends reviewing your subscriptions every few months. “If you’re subscribed to several streaming services but only use one, consider cancelling the rest. This simple step can save you £30 or more a month,” she says.
Consider switching to free workout videos online rather than maintaining an expensive gym membership.
Take advantage of interest
If you plan early, open a Fixed Rate ISA or a high-interest savings account. “While you can’t touch your ISA for at least a year, if you start saving during pregnancy, the interest will boost your savings by the time you need it,” Christie explains.
The money saved, along with interest, can help cover unexpected expenses during your maternity leave.
For more financial advice and tips from Hodge Bank, sign up for their monthly savings newsletter.