It’s no secret that having children is expensive. But by planning ahead and managing your cash flow, you can reduce the amount of financial pressure that you are under. Many families continue to contribute towards things for their children long after they turn the age of 18.

When you consider the amount of money you might need to set aside to help your children, it is important that you do plan ahead.

Book a no-obligation meeting to discuss planning your family finances. 

Planning for maternity leave

One cost that people do not often consider until they have started to plan for their family is how to manage their finances when on maternity leave.

Depending on your workplace benefits, you may only be entitled to statutory maternity pay which in the 2023/24 tax year is 90% of your average weekly earnings for 6 weeks and then £172.48 per week or 90% of your average weekly earnings (whichever is lower) for 33 weeks. If you wish to take longer than 9 months off of work then the remaining 3 months would be unpaid.

You need to consider how long you are likely to be on maternity leave so that you can plan for this drop in income. It is important to review your household income and expenditure now that you know how much income you will have when on maternity leave and you may need to reduce some of your non-essential outgoings. 

Don’t sacrifice your pension contributions

For women, it is important to maintain pension contributions while on maternity leave if this is possible so that you are not disadvantaged when you come to retire. 

How to plan for childcare costs

Before children reach school age, one of the biggest expenses is childcare which can cost hundreds or even thousands per month.

You need to consider if your income is enough to justify such a big expenditure each month. Many parents often reduce their working hours to reduce the amount of childcare hours that are needed or give up work all together instead of paying childcare for the first few years. However, this may not be an option for all families.

There are many government schemes which assist families with childcare costs. You can use the government website to check which schemes you are eligible for. 

Book a no-obligation meeting to review your finances

The common theme is planning ahead will reduce the amount of financial stress that you face and give you and your family financial security.

To discuss planning your finances, you can book a no-obligation meeting with a financial adviser.

Meetings can be by phone, zoom or at your home address or one of our offices. Call us on 0117 973 0500 or book online now.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up.  You may get back less than you invested.