How do people afford children

[emilyScF93]

I just wanted to get some advise please. Husband and I want to start a family over the next couple of years but I am really concerned about the finances. To give some background to our situation:

I am 25 and Husband 30. We live in London and live in a lovely council house property and our rent is £700 between us (husband was given tenancy before we met). I earn 32k a year (plus some variable commission max £3k a year) and husband 15k a year. I currently save £700-900 a month (which will translate into a mortgage in a couple of years when we hopefully move into our own property). Plus £100 into other investments. (Husband saves around £50 a month)

We live comfortably at the moment but worry how we will afford a child (childcare, childcare for school holidays, family holidays, school trips, treats, clothes), especially if I want to reduce hours from work. Would we be entitled to any state benefits other the child benefit? How do people juggle 12 weeks of school holiday when we only get 4.5 weeks off work as annual holiday entitlement?

Any tips would be useful as it just seems impossible at the moment.

If I were in your position I'd stay full time and get my DP to reduce hours to minimise the cost of childcare.

Why are you only getting 4.5 weeks of annual leave? I'm pretty sure statutory entitlement is 5.4.

5.6 weeks statutory holiday entitlement includes bank holidays (8 days).

If you are substantially the higher earner then you may have to be pragmatic about the roles you and your partner take on.

Financially it makes more sense for you to work ft and your partner to consider whether he earns enough for it to be worth paying for childcare.

If you don't have free childcare from relatives and don't work opposite hours (e.g. One 9-5, one shifts) then your dp would have to give up work to care for the child as his £15k salary won't cover full time nursery for one let alone 2 children.

This is why lots of families move out of London.

Elsewhere housing and childcare costs are lower.

You're only 25, I would wait until at least 30, if you can buy a place before having kids it will be so much easier for you. You are the breadwinner as well, is there a way for your husband to increase his wage? Go to college? It's going to be hard for you to take any time off for maternity if you are so reliant on your income.

It's all about sacrifices when you have kids. You do manage but there won't be may frills for a while.
Childcare gets easier from 3 as free hours kick in, that's why many choose a bigger age gap to avoid paying for 2 at the same time.
Me and my DH work opposite shifts and only really get to see each other 3 weekends a month.
We moved way out of London and I have got a much less exciting job to avoid paying to commute in.
We holiday at the in-laws and shop mostly in Lidl and charity shops but I would say we're comfortable in that we don't go without anything.
There's not much I miss about our old life except quality time with my DH and sleep.

Well it's like any 'how do you afford x' thread... we have a higher income.
Your husband's wage is quite low, is there any scope for this to improve? In your current scenario it would make far more sense for your partner to drop hours than you.

I think if you over think the financial implications of having a baby there will always be a reason not to.
When I found out I was expecting my daughter, I was not in a house and had minimal savings. In fact I'd of loved to have been in a council house.
Saying that, I know through work colleagues that childcare costs are massive, and I had some grandparent help fortunately and husband was ft employment.
I honestly think for a lot of people, they have the baby, then find a way.
I ended up going back to work pt and getting a small house through a shared ownership scheme.
Re school holidays we done a mix of grandparent, me booking time off and husband booking time off at separate times. It's not ideal and needs organisation but it's got us by.
I think you'd definitely receive child benefit but tax credits is a mystery to me. We had them, they got reduced and now we get nothing.
The fact you can save what you do every month puts you in a much more favourable position than most.
In your situation I don't think I'd have been overly worried. I guess it's all relative though.

In your shoes I'd have your DH be a SAHD untill the child is school age. Other than that you just have to cut your cloth.

Also you may choose a different set up with you earning the higher salary. Every family finds their own way to make it work. As a pp days, sacrifices are made.

*says not days

Your husband earns well below the minimum wage-is there a possibility if him retraining or changing career path now? Or move out of London?

It's often the lower earner that does the childcare as the hit to your finances is easier to manage.

appu no the OPs husband doesn't earn below the NMW.

Sorry, I mean to say average wage.

In your case you would afford children by not saving £700-900 a month and spending it on childcare instead.

What does your husband do £15k a year full time for someone in their 30's is really low, is he training? Will that figure go up when he qualifies?

You will be fine. If you think about the money too much you will never do it.. There are millions of people earning less than you having kids. You just manage! I'm a SAHM so no childcare, but no big purchases.

Presumably, you'll buy something along the lines of a two-bed flat in a cheap part of outer London (due to affordability). Your monthly mortgage will then be around £900 odd so only a little higher than your current rent. It would make sense for your husband to do the childcare in the week whilst you work full time. He could then work at weekends or some evenings - part time employment to make some financial contribution too. Your take home pay is around 2k so if he brings in, say, £500/month, you'll manage.