Planning a baby and money - how's best to do this?

Catzpaws

ginvzt wrote: »

Ok, I am in the 'ttc boat'. Have been in it for nearly 2 years.

My idea is that when it happens, I will try to work as long as possible, posibly taking the remaining year's holidays before maternity leave. Then I want full 12 months off to be with the baby. I am not 100% sure, but I think our company only pays SMP, nothing on top,. Afterwards - return part time, or if not, working from home couple of days (I can do working from home now as well). We should be able to afford it, as long as we both have jobs. I am not considering being SAHM, although would love to. It is just that is how grew up - my mum was working (teacher) and I think I will be doing the same. Besides, don't think my OH would be too pleased if I announced I am going to be SAHM and I enjoy being able to afford things I want.

Sorry to hear that you have been TTC for 2 years and nothing's happened so far.

My company only pays SMP too... It's not a lot, is it? I know I should be saving more to supplement this meagre income that I'd have during maternity leave, but I can't seem to stop spending...

My OH would love for me to be a SAHM, but recognises that it is an unrealistic expectation. His mum was a SAHM (had to as dad was working away a lot) and he had a pretty idyllic childhood. On the other hand, both my parents worked extremely hard and were never around. Not saying there's any correlation at all between the two, but I had quite an uphappy childhood really (which goes far beyond who was and who wasn't at home whilst growing up - just to re-emphasise that point!).

Catzpaws

augustsmummy wrote: »

Sorry to hear of your loss.

In answer to your question, with DD I planned to work until 36 weeks. I found out about my surprise at 6weeks. I had about £1000 in the bank at that point. I added to this during my pregnancy. I did however get signed off sick from 26 weeks, but was paid at full rate as per my contract. I then was able to take a full years leave. It was tough as we were only entitled to six months mat pay back then, and I didn't get as much as some as I hadn't worked for the company long enough to be entitled to it.

This time however, I was signed off sick from a week before I found out I was expecting, and am still off at 25weeks. I have dropped to half pay, so I am struggling a bit more this time round. I am waiting to find out if I can return to work prior to having baby, and if not howmuch mat pay I will get.
If I had the chance again I would start saving asap, as you never know what will happen with your health, something like SPD, anaemia,or pre-eclampsia for example, could have you signed off from work for a lot of your pregnancy and leave you struggling depending on your contract.
I wish you every sucess with TTC. I hope everything goes well for you.

Good point about the health issue... If I am ill for a while and not able to work, I think it will definitely be more than tricky on the financial front. My company pays statutory sick pay after four days (which is even less than SMP).

My being off during the ectopic pregnancy (had a couple of weeks off after the op) hit it home that I need more financial stability. After one month's significantly reduced salary and lots of very expensive outgoings (weddings, big family birthday celebrations, etc.), I am close to my overdraft limit. Very expensive outgoings did not help.

Hope my health remains good then...


Thanks for your message and best wishes ... xxx

MrsTinks

Biggest factor? How much you currently earn...
Seriously... If you make £15k then the drop to SMP isn't actually that big and you'd probably qualify for several benefits too.
On the other hand if you and you OH earn "too much" then you could be looking at a 75%+ drop in income with SMP... could you afford that?
I put aside £4k in the bank before my ML - and I have cut everything to the bone where I can to enable me to stay home till christmas or HOPEFULLY the full year. Then because we're not debt free and have a mortgage I will have to return to work - probably fulltime. We just can't afford to loose a £35k income if we want to carry on eating And sadly hubby earns just over the limit for us qualifying for any help in the form of WTC etc... joy... glad to know I have paid my taxes for the last many years so that I could get some help and support from them when I needed it huh?

galvanizersbaby

Catzpaws wrote: »

My career is important, yes, but it's no longer a key focus. I currently earn approx £30k a year, but my current outgoings are quite high (with debt repayments, bills, and a fairly good standard of lifestyle...:rolleyes:). Since the start of the year, we've been putting a little money away, but nowhere near what we should be doing really... we are very poor at saving! Having said that, I have been slowly paying off my credit card debt so it's not all bad (she says).

Financially, I think it would probably make most sense to return to work full-time and pay for childcare. Not looked into these costs, so not certain. I really would not wish to rely on family to look after children on an extended basis - especially on full time hours. Having said that, I just simply cannot imagine working my current job, then doing all the mum/house stuff after work.

My career is fairly established and I can, quite possibly, work in the same job/industry on more flexible hours after having children. I wouldn't be in a rush to go back to the same job though... as mentioned, I would love to set up my own business, but, of course, would not be able to do this when children are very young!

Hi Catzpaws

Sorry to hear about your loss.

I would say your best bet is to step up the saving (try to clear your debts as best you can) and then with returning to work try and keep your options open if at all possible.
Revise the situ once baby is here and you are living the dream so to speak

When I had my first child (7 years ago) I was entitled to 6 months maternity leave then returned to work part time for financial reasons and also I couldn't adjust to the sahm role well and had PND.

18 months later had my 2nd child and again took the 6 months maternity leave then again returned part time even though the double childcare meant that my take home pay wasn't great - luckily enough still worthwhile as when my daughter was 18 months I had to return to work on a full-time basis to support us.

Summing up I'm not sure anyone can prepare you emotionally for motherhood - all you can do is plan as much as poss financially with savings and debt clearing and if you can keep your career options as open/flexible as possible then that is a bonus.

Good Luck!

Catzpaws

**confuzzled** wrote: »

Hi Catz,
Sorry to hear about your ectopic:(

I can't really help on the work front, just wanted to say join us on the ttc board, someone mentioned it earlier on the thread and you might find it useful:D Also there's already a few who are trying for their 2nd so they might be able to give you some ideas too.

Personally I've already started a babyfund and fingers crossed then when we get that elusive bfp we'll have enough for me to be a SAHM:D If not, it's not the end of the world and we'll cope:D Optimistic or what eh?!?!:rotfl:

Hope to see you over on ttc soon xxxxxxxxx

Thanks confuzzled, I'll take a look at the ttc board. I'm a very long time lurker of pretty much all the boards, but very rarefy post. But, will be great to get further tips/advice from those that have been there.

Good luck with trying for your second!

Catzpaws

MrsTine wrote: »

Biggest factor? How much you currently earn...
Seriously... If you make £15k then the drop to SMP isn't actually that big and you'd probably qualify for several benefits too.
On the other hand if you and you OH earn "too much" then you could be looking at a 75%+ drop in income with SMP... could you afford that?
I put aside £4k in the bank before my ML - and I have cut everything to the bone where I can to enable me to stay home till christmas or HOPEFULLY the full year. Then because we're not debt free and have a mortgage I will have to return to work - probably fulltime. We just can't afford to loose a £35k income if we want to carry on eating And sadly hubby earns just over the limit for us qualifying for any help in the form of WTC etc... joy... glad to know I have paid my taxes for the last many years so that I could get some help and support from them when I needed it huh?

Hello MrsTine,

Our pay will drop by about 40%, with SMP, which is huge really. Obv not as massive as a 75% reduction, but still a LOT. I don't believe we'll get any financial benefits with OH's income levels.

We are hoping to save about £4k too... which I worked out would be about enough for us (living frugally) during maternity leave. I calculated this before we started TTC. I'd factored in a 6 month TTC time, although, in reality, it took much less than that (although was ectopic, of course). You just can't 100% plan for these things - clearly.

Thx, CP x

Catzpaws

Catzpaws wrote: »

Hello MrsTine,

Our pay will drop by about 40%, with SMP, which is huge really. Obv not as massive as a 75% reduction, but still a LOT. I don't believe we'll get any financial benefits with OH's income levels.

We are hoping to save about £4k too... which I worked out would be about enough for us (living frugally) during maternity leave. I calculated this before we started TTC. I'd factored in a 6 month TTC time, although, in reality, it took much less than that (although was ectopic, of course). You just can't 100% plan for these things - clearly.

Thx, CP x

Oh, just wondered, can I ask what your childcare arrangements are? Hope you don't mind my nosiness... but would be interested to know.

Thanks

CP x

MrsTinks

Catzpaws wrote: »

Oh, just wondered, can I ask what your childcare arrangements are? Hope you don't mind my nosiness... but would be interested to know.

Thanks

CP x

Well I have requested 3 days working from home - hubby will request 1 day working from home (well he'll actually ask for 2 I think...) which should mean we'd with any luck only need to put our daughter in daycare 1 day a week - maybe 2 It would have to be either nursery or childminder (my preferred option) as neither of us have family we could ask to help. They all live at least a 2 hour plane ride away LOL
I haven't found a child minder yet but have just about started looking... Hoping to pay with child care vouchers from work - as hubby is a high tax bracket income we would basically be able to buy them before his 40% tax so if my calculations are right we'd pay 60% of the normal cost of childcare...

weezl74

Catzpaws wrote: »

I'm now thinking about the next thing....MONEY. I have concerns in this area, that I would like to kind of sort out in my mind... and would be grateful for other women's/mums' views on this...

• Mums that worked before mat leave - did you save up so that you could afford to take a huge drop in pay during maternity leave and after?
• Do most women return back to work after maternity leave?
  • If so, do this do this because of the money?
• How hard is it really financially???

Hi CP

We saved up so that I could stay off for the whole year. We also lived for 18 months prior to ttc on just OH's salary, to see how possible this would be for us, (just in case I couldn't return to work after the birth) and what things we'd have to lose. My 50p a day for food challenge over on old-style gave me a great deal of support and we did just manage it!

wrote:

Women make up 46 percent of the labour force, and by 2010 one in five UK workers will be mothers. Around 400,000 women take maternity leave each year. Within nine months, 65 percent of women have returned to work, with 21 percent moving to a different employer. After 17 months, 80 percent of women are back at work. In the UK, 30,000 leave their jobs each year due to pregnancy discrimination.

about 'how hard is it really, financially?' I think it depends a lot on how you like your life to be. For me, It's not been to hard, because I realised that a lot of my treats like a daily cappucino and prawn mayo jacket at work, were aneasthetising me against the hard slog of my 3 hr commute. I was rewarding myself for a job I was unhappy about.

My life at home with my son does not feel like it needs a daily cappucino to make it bearable.;) I really enjoy it and he is lovely company. :DI'm also not paying to travel to work, don't have to have smart clothes, we pay less tax, pension and NI, and we are entitled to some child benefit and CTC. We've also felt like we've had the energy to make cost-saving parenting decisions like using reusable nappies. If Fergus potty trains at 2.5yrs we will have saved just over £1000, which is also really useful. Not saying you SHOULD do this, but if you're into that idea, it's great!

So, I think it really varies, but my experience has been good.

I hope all of the above thoughts help, do please feel free to ask any other bits if my experience feels useful

Love Weezl x

teacherandmum

i was given a raise of £200/montrh while we were trying to conceive so put that in a fund - it wasn't to pay bills or anything it was so that i didn't have to go cap in hand to oh when i wanted new boots, jumper, go out for lunch with nct group etc.
i earn £33k so the drop to smp was huge. and for 3 months i had no money coming in at all (12 months off work) my husband and i had decided that i still paid my share of the bills until i had no money coming in. so he paid the bills solely for 3 months.
i have returned to work full time when daughter was ten months. i found being at home very difficult and had/still have post natal depression. i find full time works for me even though childcare sets us back £150/week. working full time i csan also still afford things we like i.e. weekends away, car rallies, hobbies and we've also moved to a bigger house and had home improvements. we would not have afforded this is i aws a sahm.

it just depends what works for you.
we are ttc number 2 now so i'll have to think what'll happen this time!!!