Financial Strategies for New Moms on Maternity Leave

Welcoming a new bundle of joy is one of the most exciting times in a woman's life. As thrilling as it is, it also comes with a significant financial impact, especially if you're a new mom. The financial stress can often add to the pressure of welcoming a new family member and hinder the enjoyment of motherhood.

In this blog post, we'll provide insights and tips on managing finances during maternity leave, budgeting for new expenses, and preparing for the financial impact of starting a family.

Finance Tips for New Moms

Plan Your Finances for Maternity Leave

Before taking maternity leave, it is advisable to consult with your employer or HR department regarding the company's policies on maternity leave. Determine whether you qualify for paid leave, unpaid leave, or a combination of both.

In the Philippines, maternity leave policies have significantly improved, particularly with the implementation of the Expanded Maternity Leave Law in 2019. This law grants a generous 105-day paid maternity leave, which can be extended by an additional 30 days without pay. Solo mothers are entitled to an additional 15 days, allowing for a total of up to 120 days. The law applies to all pregnancies, whether in the public or private sectors, showcasing strong support for new mothers. Employers are obliged to provide the equivalent of their monthly salary during the leave period. This policy eases the financial burden for Filipino families during the crucial time of welcoming a newborn.

As you prepare for maternity leave, it is important to estimate expenses such as baby supplies, childcare, and household bills. Utilize budgeting tools such as spreadsheets or apps to monitor and plan your expenses effectively. Implement cost-saving measures such as trimming unnecessary expenses, canceling subscriptions, and reducing utility bills. Additionally, you can generate funds by selling unused items online or at thrift stores.

Create a Flexible Budget

With a little one on the way, you can expect to pay for new expenses you might not have anticipated. These may vary from medical bills to baby gear, diapers, clothes, and toys. Create a flexible budget that you can adjust to fit varying costs each month. A flexible budget allows you to allocate funds depending on your needs and keeps you from overspending. Don't forget to give room for emergency expenses, like hospital stays and medical bills that often come with a newborn baby.

Consider Part-Time Work

If you're worried about the financial implications of maternity leave, consider part-time work, freelancing, or work-from-home options. Before you go on maternity leave, discuss alternative work arrangements with your employer. You can maintain some income by continuing to work part-time or freelancing while also caring for your baby. However, this option may not be for everyone, as most new moms prefer to spend the first few months with their baby full-time.

Becoming a part-time financial advisor can offer a fulfilling job while allowing you to stay at home and control your time. This option allows you to leverage your financial skills and knowledge while still being present for your family.

Start a Baby Fund

Starting a baby fund is an excellent strategy to prepare for the financial impact of starting a family. You can start the fund as soon as you find out you're pregnant and put in money regularly. You can, for instance, take out an investment insurance plan that helps you set aside a small, fixed amount each month and invest it in a secure fund. This way, when the baby arrives, you'll have savings to cater to initial expenses, such as hospital bills, baby supplies, furniture, medical appointments, and others.

The transition to motherhood can be emotionally and financially challenging. Manage your finances with proper planning and budgeting. Start budgeting early, make the most of your employer's benefits during leave, minimize unnecessary expenses, and create a flexible budget to adapt to changing costs. With these strategies, you can enjoy maternity leave without financial worries. Remember to cherish your time with the newborn and seek guidance when needed.

InLife Sheroes has a collection of financial advice for new moms to help navigate the financial challenges of maternity leave. From budgeting tips to investment strategies, we provide support in achieving a secure financial future for you and your family. Join our community to learn more!