When it comes to growing your family, there are a lot of things that go into the planning process! We’ve all heard the saying “having a baby changes everything.” It is so cliche, but I also don’t think that truer words have ever been spoken. Along with everything else in your home, having a baby will change your household finances. After the medical bill of pregnancy and birth, the first big expense of bringing a baby home could be taking some time off of work. There are several things that you can do to plan for the cost of taking maternity leave. Start saving up now with these 10 tips on how to budget for maternity leave.
Unfortunately, in the US, paid parental leave is not mandated by the federal government. Some employers are making strides in providing for their employees, which is great! For many other parents, taking time off of work to recover from birth and care for your baby comes at the cost of several weeks of lost income. Hopefully this will change in the future, but for now, this is the reality of the world that we are living in.
Fortunately, you have the entirety of your pregnancy (and even the time before) to budget and plan ahead for the financial repercussions of taking maternity leave. Putting some of these items into place will help you to be a little more prepared to take on the burden of taking some unpaid time off work to bond with your new baby.
Here are 10 ways to budget for maternity leave:
Track your current spending
The first step to any kind of budgeting is to figure out what your current spending looks like. Start by outlining your spending using a household budget spreadsheet. This will give you an idea of where your money is going right now.
Look for small cuts
The next step is to look for small cuts. For example, do you spend a lot on takeout each month? Try cutting back a couple of meals. Small frugal choices will add up over time, and leave you with a little extra cushion while you are on maternity leave.
Talk to your HR department
Make sure to check in with human resources to find out what kind of leave is available to you. Some companies have paid maternity leave policies, but unfortunately, many in the US do not. Companies over 50 employees in size are subject to FMLA guidelines. These federal regulations protect your job, but do not require your employer to provide any compensation. Anything above this is an option for employers, so make sure to talk to yours directly.
Look into short term disability coverage
While you are on the subject, check to see if your company offers short term disability coverage. If not, you may still be able to apply for a policy on your own. As with all things insurance, there are a lot of options out there that all work differently. This FAQ from Fairy God Boss is a good starting place.
Shop used for baby clothes and items
There are many items that parents include on their new baby shopping list. Most of these items are used for a short period of time and left in great condition. Consider checking out the Facebook marketplace or second hand baby stores (Once Upon a Child is a common one and Children’s Orchard is one of my personal favorites). You can also cut down on the costs of shopping for baby by creating a baby registry for any friends or family members who would like to send gifts.
Look for second-hand maternity clothes
As with baby gear, maternity clothes are only needed for a few months. Most clothing items are still in great shape after a mom is done wearing them. I found some great items from ThredUP and just by asking around among my mom friends. Maternity clothes can be really pricey, so shopping smart can be a great way to save money for maternity leave by spending less now.
Build a diaper stockpile
Buying diapers when they’re on sale is a great way to stock up and save money after baby is born. Check out this post here for a complete guide to building a diaper stockpile.
Or consider cloth diapering
Even better, cloth diapering is a great way to save on the cost of diapers overtime. A month supply of diapers can cost anywhere from $20-75 depending on the brand. On the other hand, you can build a cloth diaper baby registry and never have to buy diapers again.
Cut grocery costs
Groceries are a big monthly expense for most families. While you obviously need groceries, there are ways to cut down on grocery costs by doing a little more research. Try shopping at discount stores, buying store brands, sticking to some affordable grocery staples, buying foods that are in season, and watching store sale ads. Cutting grocery cuts over the course of your pregnancy and maternity leave is a great way to save a little money.
Purge unnecessary household items
Take advantage of that nesting bug, and purge some unneeded household items. This idea can be a win-win. You make room for your newest family member and their stuff, while making a little extra cash by selling things that you’re no longer using. Plus a good closet clean out always feels good!
The sooner you start to save, the better.
With a handful of little changes, you can carefully budget and save up for maternity leave. The lost income from taking time off may seem daunting, but most new parents are able to find a way to make it work. The time that you spend with your baby in the beginning of his or her life is pricelessly important.
