My Partner and I have good jobs but calculating finances shows we can't afford a baby and live

[TheMightySoup]

Hello everyone,

Little introduction my Fiance and I are looking to have a baby in the next couple of years and we have been doing some money calculations based on our Salaries, currently 30k and 22k (should go up prior to childbirth) Which sounds like a lot but once we take out mortgage, expenses etc, we only have less than £500 left, based on my Fiance being on the SMP payments.

We are very new to this, very much started our in depth discussion of when to have a child this weekend. We don't know what we do and don't qualify for but we know that the ~£600 a month is a huge difference compared to my Fiancé's salary

I don't make a lot of money right now as I am on an apprenticeship scheme and my company are a little cheap. And I want to be able to make more because we just don't know what to do. Where we live has gotten really expensive all of a sudden.

I am just looking for some guidance and or help as I am very new to this and don't understand it.

We extended the term of our mortgage massively when we had babies, so our monthly payments halved. We reduced the term again a few years later when I was working again.
we also put a few things (couple of holidays, car repairs) on a low interest credit card and just paid them off over time.
someone else more knowledgeable will tell you what you’re entitled to I’m sure, as I’m not up to date!

You start saving now and plan to delay pregnancy until your financial situation improves whilst gambling on remaining relatively fertile.

You will have nursery to fund after the return to work.

Extending your mortgage term to reduce monthly payments and opting out of company pension for several years is an option.

I feel bad saying this but you need to look further ahead than just maternity leave. Have you looked at childcare costs for when you go back to work?

The truth is that you don't earn very much at the moment - if you're still young, you might be better off really chasing promotions hard/moving into more lucrative work before you start trying.

Your wage is really low, tbh it doesn’t ’sound like a lot’. You’re a bit far away from affording a baby.

How old are you both?

These replies a little blunt 😅

Our salaries were exactly the same as yours when I went on mat leave. We managed fine! A few years on and DH's wage has increased

How old are you?

Children are expensive, yes!

Save as much as you can, and do as much as you can to increase your income before you start a family. That’s about the long and short of it.

Good for you looking at the costs now.

You should wait until you’ve finished your apprenticeship and secured a full time permanent role. Then you’ll need to save up to fund a maternity leave and calculate if you can afford the nursery costs etc. if you can’t, then you’ll either need to wait until you’ve moved up the ladder and got a pay rise, or cut your expenses.

If you’re doing an apprenticeship I’m assuming you’re quite young so time will be on your side?

How old are you? If possible, I'd delay to allow you to save and/or until your salary increases post-apprenticeship.

I wouldn't advise anyone working as an apprentice to have a baby. How old are you?

Who is earning the 22k ? If it's you and then you would only have smp on top of that you may be eligible for some Universal credit once the baby is born assuming you don't have savings over 16k ? Perhaps put the figures into a benefits calculator. you would also be eligible for child benefit which I think is rising to around £24 a week. Mostly though as others have said it's a case of delaying conceiving until you are in a better position financially.

We are both 26 and know this is a little way off, we are getting married next year but following that all our money is going into Baby budget.

We have been together 7 years and wanted to have kids before we turned 30 but that might be a little way off

I’m in the same position as you. I work in childcare so no chance of salary rising greatly or promotions etc. Older people just don’t understand how much the world has changed in regards to prices rising yet wages haven’t.

Mortage Interest rates are ridiculous, the cost of food has shot up. We don’t drink, smoke, drive expensive cars, gamble or go on extravagant holidays yet the thought of a baby just isn’t possible. If I went back to work I would earn less than what our childcare would cost. It’s sad and frustrating.

Maternity pay was a massive drop compared to my normal salary so we saved for ages before getting pregnant and wiped that out so I could afford to be off for 9 months.

I started my degree apprenticeship a little later but I'm 5 years in to a 6 year course, by next summer I'll have qualified and should be in the 35k realm

Are you able to save at the moment, could one of you get a second job and you save up a lump sum for your baby fund?

1: get married
2: complete your apprenticeship
3: have a baby when you are making a larger income

What’s the burning urge to have them by 30? I’d suggest it’s a better idea to spend the next 4/5 years climbing the earnings ladder as hard as you can to set yourself up to have a good financial grounding to support a family. Having kids is much easier with a solid financial foundation.

My fiance and I have both been told due to pre existing health conditions that we should start trying earlier, however we realise that if we do 'strike gold' and have a baby, what would we do

Quite honestly with the cost of things as high as they are I wouldn’t want to have a baby on those salaries either. Work your way up for a few more years then reassess.

At your age I would concentrate on saving money and not spending too much on your wedding. How long is your apprenticeship? Will that be finished before age 30? If you are very low income you will get help, look on a benefit calculator to see what you would get with a baby perhaps

I agree about not spending too much on your wedding.

My apprenticeship ends next year and should come with a healthy salary boost.