To be panicking about money whilst on maternity leave?

[CobaltRose]

Hi everyone. I'm 21 and ten weeks pregnant, and am already panicking about how we're going to manage financially once I go on maternity leave! This pregnancy was very much unplanned (contraceptive failure), before people start harping on about being responsible....

Anyway... This'll be long as I tend to waffle!

Currently, I live with my fiancé in a privately rented 1 bed flat. He is only contracted to work 12 hours a week but has NEVER only worked 12 hours in the whole four years he's worked there. He works, on average, 40 hours a week. Sometimes more. He earns around £1200 a month (sometimes more depending on how many hours he's worked) which is enough to cover our rent and utility bills. He normally has around £150-£200 left over once everything has been paid, which he puts into a savings account. I understand we're lucky in that respect, as some people don't have anything left over at the end of the month!

Now, as for me, I only work part time as I'm currently a full time student. I only work ten hours a week and am paid £71.25 a week. I only have to pay for our broadband (£24 a month) and food (around £50 a week). As I'm currently still a student I am in receipt of maintenance loans (£2300 every three months). I have been saving this up, but gave my parents £1000 as my dad was made redundant and they were really struggling with money. This was in early January before I moved in with my partner and before I discovered I was pregnant.

However, since discovering that I was pregnant I have decided to defer my studies for a year. I'm still planning on completing my first year (which will finish end of April) so will receive another loan payment in April, but that will be it until I return to my studies next year. I currently have around £2500 in my account, which was from selling my car. So, once I receive my next loan payment I will have just under 5k in my account.

On top of this I'll still be working part time, so will continue to get £71.25 a week in wages. However, I am terrified of how our financial situation will change once I go on maternity leave!

I'm not due until late October, and am planning on working for as long as I possibly can, so am not planning to go on maternity leave until September. Because I don't earn enough to qualify for SMP, I'd have to be in receipt of MA, which will only be around £64 a week for 29 weeks and £27 for 14 weeks! Better than nothing, but still not a lot. Because of this I'm not planning on taking the full year off, as I think we really wouldn't be able to afford it. Thankfully we've got grandparents who are able and willing to look after baby on the weekend, so I am seriously considering returning to work after six months, much as I'd like to take the full year off. I'm also considering taking a part time job during the week as well as the weekend, as my fiancé has one day off during the week where he could look after baby.

That's all well and good once I'm ready to go back to work, but I'm really concerned about how we'll manage financially in the months that I'm not working.

Am I being unreasonable for thinking that we could probably manage on OH's salary and the money I have saved up in my account for the few months that I'm on maternity leave? I know we'd get child benefit once baby is born too, but it's only £20 a week. I go from thinking 'Yeah, we'll be fine! We wouldn't be able to afford luxuries but we'll all be fed and warm which is the main thing!' to 'Aaaargh! How on earth will we survive!' I know we'd probably be entitled to some kind of benefit but I don't really want to go on them if we could manage without.

Perhaps I'm just being too anxious. Any advice would be greatly appreciated!

Thanks

I might have misunderstood, you know if you go back to leave your MA will stop right?

Life has a habit of sorting things out, most people will be unsure that they can afford a child but things tick along and it turns out okay. You are in a great position in a lot of ways; you have a partner, you both have the potential to earn larger incomes in the future, and you are both financially aware (partner already saving) and therefore there are lots of positives.

I would suggest, as someone mentioned earlier, going over to Money saving expert and reading the boards there and looking for ways to cut back / increase your income. This doesn't necessarily mean upping hours at work; perhaps you have stuff that you could sell on ebay, there are various apps and websites that would allow you to earn some money (mystery shopping etc). I personally use various survey sites and it brings in a regular amount, not life changing but it all helps - some pay in vouchers, some pay in cash, all are useful!!

For me the best one I use is called Swagbucks, it involves some surveys, leaving some videos to play etc, this month I have cashed out £30 in Amazon vouchers from there, my usual amount is £25-£30 a month. I agree this isn't going to make the world of difference but it might mean you can have the odd takeaway with your partner when moneys tight, or it could be used towards Christmas / birthdays. Please pm me if you'd like further details.

You will find that when the baby is born people are incredibly generous and you shouldn't need to purchase too much for him/her. Good luck and enjoy your pregnancy x

Work not leave!

Congratulations on pregnancy :-)

I'm sure you'll be fine, you should claim what you're entitled to though, that's what it's there for :-)

You sound like a good financial planner to even be thinking about it at this stage so I'm sure you'll be fine. I know how you feel, am also worried about not earning when on maternity leave but I try to remind myself most people struggle at first financially with a bump on the way so will hopefully get by :-) xx

@Loandbeholdagain, yes, I'm aware of that. But if I finished my leave early and got a job that provided more hours than my current one I'd be earning considerably more than I would be if I stayed on MA. At least by my calculations.

I always think the idea that people ought to take a full year is a worrying message - I didn’t for either of mine, if you’ve got access to childcare by other family members, your baby will do very well and they need you all the way through their lives, I wish you could spread ML entitlement through the first 10 years, it’d help with sickness and school holidays.

Now - presumably the big bucks roll in when you finish your degree - do you have to take that whole year out, there’s no chance of Tammy a smaller interruption?

I know your DP is lovely and hardworking, does he have a plan to train in something that pays more though or any plan for moving up? It’s worth him thinking on it, even if it takes 5 years to eventuate.

The only thing you do have to really worry about is making sure you don’t get bogged down with the side job to make money and then get too tired to go back to your degree - that’s your way of getting your long term stability sorted, but so often short term squeezes torpedo people’s abilities to get a better long term plan together.

I’ve seen it happen so many times.

There are lots of times when the baby sleeps and you can’t for whatever reason - try and get ahead on the course reading for when you go back so you still feel connected to it and engaged, because it’s your and your baby’s best future.

The money stuff is secondary to getting your degree as that’ll put you into a new league financially.

Why is taking a full year off worrying? I felt like half of that was needed just to recover and the other half to actually enjoy my baby. Plus dealing with all the illness etc in the first year without juggling work. A year felt pretty good to me...

Just to throw another suggestion into the pot - a friend of mine at uni got pregnant and had the baby Christmas of her final year, apart from about 2 weeks off extra to the Christmas holidays she finished her final year with baby in tow. She was also 3 hours from her parents so have little support other than us - we did odd babysitting when it fitted but used uni creche the most.

It might be worth considering carrying on your studying alongside the baby. Personally I would have found studying a lot easier when they were newborn to when they were 1 upwards - I have a 3 and 1 year old.

My friend was also studying Biosciences as well - so a comparable degree.

also check UC for savings as it is differrent to TC and there should be a limit to how much you can have saved before effecting benefit

good luck

A full year is not necessarily worrying, but I’ve seen friends drop out as they disconnect from from their degrees after a year out, get too used to earning money and lose sight of tbe big picture.

I also agree that it’s easier to study and look after an under 1 than a toddler although other people may disagree.

I’m just thinking of you’re going back to work, for money reasons, why not go back to university earlier instead? It needs evaluating

One of the reason I'm not going back earlier is childcare. My uni's nursery doesn't accept children under three months. Plus, this is probably just personal preference, but I'd much rather complete my first year, take a year off, then start the new year afresh rather than starting second year heavily pregnant, taking a few weeks off to have baby (and missing lectures), and then return full time (whilst trying to find childcare). I dunno, I don't like the sound of all that starting then stopping then starting again.

Just my personal preference. Plus, I'd like to spend a few uninterrupted weeks with baby rather than going straight back to uni when they're very very young.

“ I don't think I'm entitled to MA if I leave my current job whilst I'm on maternity leave, though I may be wrong about that.”

Someone might have already pointed this out (I’ve only skim read the replies) but you are wrong about that. Maternity Allowance entitlement is based on NI contributions during a certain stage your pregnancy (I forget when exactly, it’s a bit random, but it sounds like you might have looked it up anyway?) and it doesn’t matter what happens after that, you could quit your job or change jobs, before or after having the baby, and you would still get MA for the full 39 weeks.

Universal Credit hasn’t been fully rolled out in my area so we’re still on the old system which means I’m thinking you’d get Child Tax Credits but of course it will actually be Universal Credit. A PP mentioned that CTC are usually calculated according to your income in the previous tax year - that’s true, but you can ask them to recalculate based on actual/projected income for the current tax year if it is significantly different (which it obviously is during maternity leave).

If I were you I would consider childcare costs very carefully before deciding to return to work (part time or full time) after having the baby. Do some calculations for the various scenarios using a benefits calculator (eg entitledto, Turn2Us). I agree with PPs that it would be wise to focus on making sure you go back to uni and finish your degree. Part time work will be a bonus if you can get childcare that will make it financially worth it.

Oh and don’t lend your parents any more money! Obviously. If they’re struggling there are plenty of options for them, maybe suggest they contact Citizens Advice or Stepchange for example, to get some advice.

I don’t quite understand why the university option means you have to use nursery, but upping hours in a McJob wouldn’t mean that? Surely your family could offer support so you could carry on studying?

Btw - dd went to nursery 2 days a week at 3 months, she’s doing really well as a 7 year old and not scarred for life and we have a much nicer life than we would’ve done if I’d not gone back to work.

I know I hear you, babies are lovely but degrees do offer quite a lot of flexible times that you’ll still be seeing your baby.

As least think about how you’re going to stay connected to your degree, this really is the main factor in your future end to money worries. I can think of at least two people I know at first hand that never completed their degrees due to interruptions to have children.

@JessTessMess, I've explained this further up the thread.

My university has a nursery on campus. Therefore, when I'm at uni I can take baby with me. I take the train to uni as I don't drive.

Mine and my fiancé's parents are only able to babysit on the weekends due to working full time themselves. My fiancé has Fridays and Saturdays off, therefore if I got a job working Fridays, Saturdays and Sundays, baby would be looked after by either my fiancé or grandparents. Of course I would no longer be able to work Fridays once I started uni again, but I'd still be able to work weekends.

Hope that's made it a bit clearer.

It does but the question would remain whether you could take 2 days a week in nursery when the baby’s 3 months and the Friday with gp and carry on sooner than taking the full year out.

It’s clear that you’re set on the plans you’ve made and I’m sure it’ll work out well for you as you’ve done a lot of thinking about your options.l, so it only remains to say to try and keep connected to your course and your degree goal whilst you’re off.

Sorry to be so persistent but so often there are so many desperate threads about boosting income and you’re already part way to making a real difference to your life and I’d hate for you to lose sight of that, the best way as you know to boost income long term is by training to put you in another league and it’s so hard to commit to the time because of life events.

Depends what the degree is in and the career path, surely!

Don't apologise, I know you're only trying to be helpful and I appreciate it!

My second year starts in late September, and I'm due in late October. If I enrol this year, attend lectures for a month, and then take time off to have baby, I wouldn't be able to return until baby was three months old (due to nursery situation). So, from October - late January I'd be missing lectures AND exams. That seems more detrimental to me in the long term than taking a year off. I'd have missed so much in those three months I'd probably have to resit anyway.

I've already spoken to my course leader and she agrees that deferring for a year is the best option, and that many on my course (including expectant mothers) have done so and succeeded.

I do get what you mean about losing touch with university, but my course leader is going to keep in regular contact, and I've already made good friends on my course who are also going to stay in contact.

I appreciate the advice I've been given nonetheless.

titty op is doing a degree that directly opens to graduate lab jobs - it’s a fantastic plan to boost her earnings.

Good luck cobalt you sound sensible - it’s cleaner for the university for you to take a year off, remember that they are also down what’s easiest for them!

If you had no complications, you could work up til 38 week’s at university, people do in the US work til their due date and then a chunk of the 3 months is the long Christmas holiday.

I’ll shut up now, but I have my fingers crossed for you going back after that interruption.

In my view, universities love the cleanness of people taking a full year out but they don’t take any responsibility for the corresponding high drop out rates. It might well be that most people doing interruptions would be better off switching to part time and pushing through but pastoral care has a long way to improve.

I don't know much about the maternity allowance and child benefit side of things, but I do know that having a baby can be done cheaply.

Breastfeed if you can.

Aldi nappies and wipes are wonderful, don't think you're giving your kid second best- one of the mintest ladies I know uses them 😂

Get to your local children's centre if you have one. I did 20 weeks of activities (understanding your baby, singing group) twice a week, plus a 6 week baby massage course for the princely sum of £13.20. Ours also quite often have opened packs of outgrown nappies and things like clothes to pass on to struggling families.

Local Facebook selling sites are wonderful- sign up to them all. Buy everything second hand lol, don't waste money on new stuff, most stuff for newborns is only used for a matter of weeks. Put a post on saying you're struggling, you'd be surprised how much people are happy to give away. One of my friends went to pick up a rocking chair that someone had given her and in passing mentioned she explained her situation they bundled a load of newborn clothes, a bouncer chair, toys, all sorts.

If you're really struggling to afford try hitting up some charities. There's a few near me (LocalTown Baby Bank, First Days) that set new, struggling parents up with buggies, cots, clothes, nappies, wipes, towels...

You can do this on your income, there's ways and means as soon as you scratch the surface.

Thanks Oh, I'm definitely not going to drop out. I worked too hard at school and sixth form to quit at the first hurdle. I love my course and would sorely miss it if I were to quit. If anything, having a child will make me even more determined to succeed. Now, it's not just my future and welfare I've got to consider.

Thanks @Tartsamazeballs, I've already had a peek at eBay and it's amazing the stuff they have cheap! 18 packs of wipes for something like £12!