Planning to be parents

A question about : Planning to be parents

Hi folks
Long term user of MSE but don’t post much, hoping to pick your brains as not really wanting to discuss with family/friends at this point.

Long story short was married had planned at that point to have kids and me not work we were luckily in a position with low mortgage that could have been achievable sadly it didn’t work out we divorced and now with a new partner of 3 years and lived together for over 1. All going great. Im not getting any younger (35) so need to seriously think about the baby thing (years ago was very broody now not so much) but don’t think I could go through life not even having tried to get pregnant.

I consider myself pretty clued up financially and do the best I can do (sure there must be room for minor improvements) what worries me more is the financial drop in wages of having a baby – 9 months on statutory maternity allowance would be a drop of about Ј700 a month for me, we would have to pay for childcare (nursery or childminder) as my parents are retired and not physically fit enough to help and OHs work and not able to help.

Should I just be resound to the fact that I may have to take out a zero percent credit card to get through tougher times? I am sure I could buy up baby stuff cheap from car boots sales etc its not the cost of the baby it’s the drop in wages that’s scaring me, OH works and will take over time etc when he can so I am sure he would do his best to provide,

Just wondering what others did in this situation did you save a lot before coming off on maternity to try and lessen the burdon?

Any thoughts/tips gratefully received.

Best answers:

• We practised just living on 1 salary and over paying on the mortgage with mine (so it wasn't available to dip into). We did go without some treats and DH got a bit grumpy. It all went to pot with post natal depression for me, but it was definitely better than not having done anything. The trouble with a savings pot is that I can spend each pound five times over, ie forget it is already allocated to something and it gives me a false sense of security.
• It is certainly possible to provide for a family on one income (my OH's is certainly way less than the national average and we manage.)
  Remember you will get tax credits and child benefit once the baby is born. It depends on your income of course but could be a few hundred pounds a month, so it does ease the shock of one income loss. Maybe you could post a SOA on the DFW board and see if the lovely people over there have any ideas for reducing your outgoings? The Old Style board is excellent for practical ideas for grocery budgets and other ways of living on less. If you are not pregnant yet you have plenty of time to consider how to make it work. Although many people will say you shouldn't have a baby without being financially prepared, I don't think you should give up your chances of becoming a parent just because of money concerns, especially since you and your partner currently both work and have some stability there.
  I'm not so sure the zero percent credit card is a good idea though... it does all have to be paid back at some point and you will find it no easier to do so when you are back and work and handing over (possibly) half your wages in childcare. While you are still working you may find it easier to reduce what you spend and save what is left over? Most people would advise that you shouldn't get into debt for the likes of a wedding, I think the same is true of having children - you need to learn how to live your lifestyle according to what you have.
  Baby stuff doesn't have to be expensive, and they really don't need much in their first year of life, despite what all the shops and catalouges try to sell you. Second-hand is perfectly fine, you can pick up some real bargains on things that have barely been used!
• I had a drop of around Ј1200 per month when I went onto smp - I had been working full time before having my first child. I had a full year off with both children and only went back 3 days per week after mat leave.
  I found I spent very little while off on mat leave.
  First 6 months spent at home feeding 24 hrs per day almost! You dont have time to do much or spend much! Babies do not cost much at all! No need to spend money on food til at least 6 months and even then it is so cheap to make pots of soup/spag bol and portion it.
  And remember nursery fees will only be there on your return to work when you are back earning.
  We pay Ј1100 per month in nursery fees to have our 2 in nursery 3 days per week that I work.
  0% credit cards are one of the worlds best things - if you pay your minimum balance every much! We max our our cards every time to Ј6k or whatever as long as you know you can pay the full amount at the end of the 15 months! Even better if you can keep that 6k in a savings account earning 3% then you have gained interest at the end of the year too!
  You do get child benefit of Ј20 per week but that will probably be all your are entitled to.
  Good luck and enjoy!
• We couldn't save anything either time I went on maternity leave, we have definitely managed but it will be nice to have a bit more money one of these days! I'm currently arranging to go back to work early next year.
  Double check with your employer whether they offer any enhanced benefits for maternity. Worst case scenario is of course SMP which is low but can be done especially if your other half has a salary coming in.
  You should get child benefit and might get child tax credits too - have a look on the entitledto website for some idea.
  Remember that you still accrue holiday when you are on mat leave so that's good for a paid bit at the end. You can also, if agreed with your employer, work up to 10 days on your usual pay.
  Also look at whether your employer does childcare vouchers and/or the government scheme that will start in September next year (I think) where you can effectively get the tax back on a portion of your salary to pay towards childcare.