What financial help do you get when you have children?

Legacy_user

I know this is the age old question, but i'm going to ask it anyway...

Hubby and I would love to start a family. We got married last year, and have been working really hard to get the wedding debt down...we are on course to meet our targets I set us for this year.

HOWEVER.

I don't have clue about financial help you get when you have a child. I've googled it many times and looked in all the websites and done all the calculators, but it just doesn't make sense to me. So if someone could advise me that would be most helpful.

I earn £16k, hubby being self employed earns between £29-36k per year. We don't have a huge mortgage, although we would like to move to a bigger house but it's not a priority at the moment. The main outgoing we are going to have next year is a huge loan we have. There is still 3 years left on the loan, and we pay an embarrassing £450 pm to it Each month we have around £700-800 extra after all our other bills.

If we had a child, and I were to go back to work, we would need childcare as we have no family who can help us out. So we would be around £650 per month on childcare alone. That would mean we would have around £50-150 extra each month!

Now am I right in saying our combined salaries means we would not be eligible for any WFTC? If I'm right, then it looks as though we can't afford to have kids.

The only other alternation I can think of on paper, is that I stop working, but then because my hubby's wage is so high, would that really make any difference?

I just want to make it clear that I'm not trying to get money for nothing, or work out how to benefit-scam. I just don't want to have kids thinking it will all work out in the end, because looking at the numbers it really won't! But I just don't get it, because our combined salaries, I think, are pretty decent, so is it really as black and white as it seems? Am I missing something??

I've even went to the extreme of making up a spreadsheet trying to work out all the different combinations of hours I could go back to work, trying to save on childcare, but I think because of hubby's salary it really wouldn't make any difference...am I right?

One last question...I know the WFTC threshold is around £42k this year...is it true it's going to £30k next year?

Thanks for any help! We are in our 30's and i'm just aware that our body clocks are ticking, scared we will run out of time!!

nannytone_2

if you were entitled to anything, on your husbands income alone, you would only get the family premium of child tax credits which is about £10 a week. plus child benefit of £20 a week.

welshmoneylover

moaning_myrtle wrote: »

I know this is the age old question, but i'm going to ask it anyway...

Hubby and I would love to start a family. We got married last year, and have been working really hard to get the wedding debt down...we are on course to meet our targets I set us for this year.

HOWEVER.

I don't have clue about financial help you get when you have a child. I've googled it many times and looked in all the websites and done all the calculators, but it just doesn't make sense to me. So if someone could advise me that would be most helpful.

I earn £16k, hubby being self employed earns between £29-36k per year. We don't have a huge mortgage, although we would like to move to a bigger house but it's not a priority at the moment. The main outgoing we are going to have next year is a huge loan we have. There is still 3 years left on the loan, and we pay an embarrassing £450 pm to it Each month we have around £700-800 extra after all our other bills.

If we had a child, and I were to go back to work, we would need childcare as we have no family who can help us out. So we would be around £650 per month on childcare alone. That would mean we would have around £50-150 extra each month!

Now am I right in saying our combined salaries means we would not be eligible for any WFTC? If I'm right, then it looks as though we can't afford to have kids.

The only other alternation I can think of on paper, is that I stop working, but then because my hubby's wage is so high, would that really make any difference?

I just want to make it clear that I'm not trying to get money for nothing, or work out how to benefit-scam. I just don't want to have kids thinking it will all work out in the end, because looking at the numbers it really won't! But I just don't get it, because our combined salaries, I think, are pretty decent, so is it really as black and white as it seems? Am I missing something??

I've even went to the extreme of making up a spreadsheet trying to work out all the different combinations of hours I could go back to work, trying to save on childcare, but I think because of hubby's salary it really wouldn't make any difference...am I right?

One last question...I know the WFTC threshold is around £42k this year...is it true it's going to £30k next year?

Thanks for any help! We are in our 30's and i'm just aware that our body clocks are ticking, scared we will run out of time!!

With the high wages you are both on, surely you shouldn't be in debt?

If you do go ahead and plan a family, may I suggest you start saving a 'fighting fund' to pay for everything first.

System

welshmoneylover wrote: »

With the high wages you are both on, surely you shouldn't be in debt?

If you do go ahead and plan a family, may I suggest you start saving a 'fighting fund' to pay for everything first.

I didn't think my salary was classed as "high", and hubby works hard at his business and only in recent years seen his salary increase. We had a big lavish wedding and that is where the debt comes from. I don't mean to be rude, but I came on here asking for advice, I thought that was the idea of the forum, I didn't expect to get judged by my debt.

akin_drum

Children can be as expensive or as cheap as you make them. Depends on what you want; if you a £400 + pram and all the matching accessories then it is an expensive hobby! Personally, I think you should concentrate on clearing the debt and saving as hard as possible. Then take the plunge; you'll find that with or with benefits you will manage.

ETA: While I appreciate you don't like the comments regarding your debt; looking at your signature (at the bottom of your posts for all the world to see) you have a LOT of debt and really should be concentrating on getting that cleared as quickly as possible - or you will find yourselves getting into further difficulties.

System

akin_drum wrote: »

Children can be as expensive or as cheap as you make them. Depends on what you want; if you a £400 + pram and all the matching accessories then it is an expensive hobby! Personally, I think you should concentrate on clearing the debt and saving as hard as possible. Then take the plunge; you'll find that with or with benefits you will manage.

ETA: While I appreciate you don't like the comments regarding your debt; looking at your signature (at the bottom of your posts for all the world to see) you have a LOT of debt and really should be concentrating on getting that cleared as quickly as possible - or you will find yourselves getting into further difficulties.

Thanks for that. Yes I do appreciate we have a lot of debt, but I suppose I just felt for someone to say "surely you shouldn't be in debt?" is a bit harsh. That's like saying to someone trying to lose weight...surely you shouldn't be fat! I just thought it was rude, just my opinion.

welshmoneylover

lavish weddings are lovely to look at the pics, but paying for it afterwards is not so lovely.

I may have come across as harsh, Idon't mean to be. i'm a bit old school where it was drummed into me to save up if you wanted anything and not take on debt.

I am debt free :j I've never had an overdraft :j

Torry_Quine

welshmoneylover wrote: »

lavish weddings are lovely to look at the pics, but paying for it afterwards is not so lovely.

I may have come across as harsh, Idon't mean to be. i'm a bit old school where it was drummed into me to save up if you wanted anything and not take on debt.

I am debt free :j I've never had an overdraft :j

Me too. Saving up for something makes it more of an achievement when you get it. Have never had an overdraft or a credit card and have no debts. It really worries me when I see the amount of debt people are willing to take on.

System

welshmoneylover believe it or not I used to be like you, and we did plan the wedding for a good few years so we would save for it, but half way through the planning and saving my mum died suddenly and I suppose I just started looking at things differently and decided life was too short, and to enjoy it while I could! Sounds great, it WAS great..but like you say, it isn't so much now

Maybe i'll go over the numbers and see how much of the loan we can make overpayments to next year.

I suppose I just thought that there was some mystery helping hand you got...everyone seems to manage just fine having kids...but going by the figures, even without the loan, we would just get by!! I don't know how people manage to have big mortgages and nice cars and exotic holidays as well as bringing up kids!

ERICS_MUM

This is not a critical nor judgemental post, it's just based on lots of your type of question on this forum.

Do you have a good grip of your monthly outgoings or do you pay your bills etc and spend what's left ? Perhaps you could keep a spending diary for a month to see where your money actually goes !

When I did mine I was shocked at how much I spent on expensive frothy coffees, magazines, spur of the moment take-aways, chocs at the petrol station etc. I was also extravagant on things like buying all the latest cleaning materials, posh toilet rolls etc.

Spendless

How old are you moaning myrtle? Cos the sensible thing to do would be to wait those 3 years till your loan is paid off, which may be fine if you are early 20s, but not so great if you are late 30s.