How to manage your finances for maternity leave: 4 tips from a money expert
Financial expert shares four practical tips on saving money and making the most of your finances ahead of maternity leave.
Expecting a baby is thrilling, but managing finances on statutory maternity pay can be challenging. Christie Cook, a financial expert at Hodge Bank, shared her top four tips for making the most of your money before maternity leave begins.
1. Cut back where you can
Reducing everyday expenses can add up quickly. Cook highlighted to The Money Pages, “The average takeaway for two costs around £30, which could buy 99 nappies—a week’s worth for a newborn using 10 to 12 nappies daily.”
Reallocating such costs to savings can help build a financial cushion. She also recommends reviewing household bills to ensure you’re getting the best deal and avoiding impulse buys at the supermarket.
2. Declutter for extra cash
Expecting parents often need to create space at home. Use this opportunity to sell unwanted items and bolster your savings. “Sites like Vinted are great for decluttering and making money,” Cook suggests. This helps prepare for the baby’s arrival while adding funds to your savings pot.
3. Choose the right savings account
Once you’ve cut costs and made some extra cash, it’s essential to maximise your savings. Cook recommends considering easy access accounts, but warns that fixed rate accounts might offer more security as rates fluctuate.
“Opening a Fixed Rate ISA during pregnancy means you can’t touch it until the third month of your maternity leave, giving you savings plus interest when you need it most,” she explains.
4. Find savings through lifestyle changes
Pregnancy often brings changes that can lead to natural savings. For example, cancelling a gym membership when workouts become less feasible can free up funds.
“Streaming services provide free workout videos that you can fit around your baby’s schedule,” Cook says. Similarly, cutting back on unused streaming subscriptions can make a difference. “If you mainly watch one platform, consider cancelling the rest.”
By making mindful adjustments, decluttering, choosing smart savings options, and adapting spending habits, parents-to-be can face maternity leave with greater confidence.
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Authors
Ruairidh is the Digital Lead on MadeForMums. He works with a team of fantastically talented content creators and subject-matter experts on MadeForMums.
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