Saving for maternity isn’t impossible if you decide to save. 

 This blog post will share my experience of saving for my maternity leave and how I did it fast.

Here are 15 steps that can help you save for maternity leave. Let’s see!

Saving For Maternity Leave: Helpful Statistics

Total American Working Moms`23.5 M
American Moms Who Work Full-Time2/3
Monthly kid raising cost in America$1,500
Annual kid raising cost in America$18,000
  1. Check-In With HR

The HR department may also be able to assist you in making the most of a flexible spending account (FSA), which allows you to put more pre-tax money toward future medical and child care needs.

How did I do it?

I stopped by my HR department as early as I intended to notify my employer of my pregnancy to explain paternity leave policies. 

Medical coverage, using holiday and overtime pay off as part of employment leave, receiving some reimbursement for maternity, and short-term filing sickness is all examples of these policies.

How did it help me in maternity saving?

I confirm everything for insurance covers in terms of hospital visits, prescription medicines, and medical supplies, as well as how much my infant will be treated after birth. 

I’ve clarified the arrangements with HR after I talked to my boss and coworkers about forthcoming maternity or paternity leave.

  1.  Get a Credit Card That Helps You Save

While it’s vital to use your credit card responsibly, it can also help you meet your budgeting objectives. 

How did I do it?

Certain credit or debit card options may make much more sense than some others, depending on our phase of life. 

As a reminder, regardless of whatever credit card you use, I always follow the same recommended practice to improve my credit score.

How did it help me in maternity saving?

I made some efforts to keep my utilization low and pay my bills on time. 

Making late payments, after all, might have the greatest negative influence on our credit score.

  1.  Estimate how much you’ll need

Now would be the moment to start actively sticking to and monitoring your budget. 

How did I do it?

I keep tracking what members of my household and I spend for at least 30 days to get a clear picture of where my money goes every month.

To keep my progress on track, I scheduled a bi-monthly family finance meeting. 

How did it help me in maternity saving?

Establishing a practical plan of action, including all individuals who consume and generate revenue in my household. 

Saving for maternity helped me determine my income if I were out of employment or maternity leave.

  1.  Get a comprehensive health insurance policy

To learn more about your maternity coverage, visit your health insurance company.

You can’t change your coverage or change to a complete health insurance plan if you’re already pregnant.

How did I do it?

When I was not pregnant: I Considered a policy with a reduced deductible, cost for office visits, and coinsurance. 

If that’s the case, sign up for such policies throughout the enrollment period season.

How did it help me in maternity saving?

A plan with higher coverage helped me in lowering my labor and delivery costs. It helped me a lot in maternity savings.

  1.  Crunch the Numbers to Maximize Your Budget 

Too several parents depend on guesses rather than researching to figure out details while saving for maternity. 

Make sure to budget for your monthly salary while you’re on maternity leave.

How did I do it?

I took into account the reimbursements that I would receive from my boss for just about any partially paid parental leave, unused vacation days, and just about any other additional money I could make by freelancing or working on a low wage. 

After that, I deduct my maternity leave earnings from my expenses. 

If it is indeed negative, that is the minimum needed you’ll want to save for every month you won’t have to work once the kid is born. 

How did it help me in maternity saving?

Whenever I take the time to plan out my budget in detail, I avoid the stress and uncertainty of unexpected spending. 

I never forget to include any changes in expenditure that occur after the baby is born.

  1.  Use a baby registry for the big stuff, too

Some parents put off adding larger, more expensive things to their baby registry until later.

How did I do it?

I spent less amount to pay on big-ticket items for the baby.

But that doesn’t mean that I never spent on my infant.

How did it help me in maternity saving?

I didn’t put a high-priced product on the register, such as a stroller, swings, car seat, or even a crib. 

My friends and family bought these for me.

In this way, I saved money on these products.

  1.  How much can your partner contribute?

It may be simpler to manage with missed income if you have a kid in a two-income marriage.

Single women may not have the same level of protection.

They may have to save on their own in the months leading up to birth, and they may not receive any financial assistance while they are unemployed.

How did I do it?

I anticipated my income to reduce when I was on maternity leave. I did the calculation to see whether my partner’s salary would cover the difference.

How did it help me with maternity savings?

Although my spouse cannot cover all of my expenses, it could cover a portion of them, lowering the amount I must save.

  1.  Take Charge of Your Spending

Saving for parental leave is mostly about projecting your income and expenses while you’re out of a job and looking for your kid.

Now is the moment to start actively sticking to and monitoring your budget. 

How did I do it?

I kept track of what my family spent at least 30 days to get a clear picture of what my money was going on each month. 

How did it help me in maternity saving?

Defining a realistic course of action with all members in my household that spend and create revenue was helpful for me to save successfully. 

  1.  Open a dedicated maternity savings fund

Open a separate bank account for maternity leave once you’ve determined how much you’ll need.

How did I do it?

I kept this account distinct from any emergency or rainy-day funds I may have.

I loved to keep my wet and windy fund untouched if I had any unforeseen expenses following the birth of my child.

How did it help me in maternity saving?

I divided that amount I needed for maternity leave by months until my due date and set aside that amount every month. 

In this, I saved a lot.

  1.  Took Advantage of Family-Specific Discounts and Tax Credits

You’ll probably find a wide range of discount programs and free material for expectant parents if you do a little investigation. 

Remember to offer tax credits as well.

How did I do it?

Based on the birth period, I was eligible to claim the Child Tax Credit for the year my kid was born, deduct qualified child care costs, and contribute money to a College 529 savings plan. 

How did it help me in maternity saving?

All of them decreased my taxable income, allowing me to save more money.

  1.  Make Couponing a Family Activity

By recognizing and taking advantage of low-hanging fruit possibilities, such as couponing, you can save a lot of money.

How did I do it?

I made certain that overspending does not negate my couponing efforts.

I Minimize all extra spending in my budget and put the money into savings instead. 

How did it help me in maternity saving?

When I get a bonus, I put it into savings instead of purchasing the luxury crib. 

I saved money by networking with family and friends, neighbors to obtain gently worn baby products.

  1.  Plan to Keep Your Professional Skills Sharp

There are some unavoidable realities to spending a long period of employment on parental leave. 

When you return to work, you may feel out of touch or more anxious due to your absence.

How did I do it?

Using my family leave to keep up on critical skills or start reading up on corporation news helped me keep my job and, hence, my financial stability once I return to work.

How did it help me in maternity saving?

It helped me save more money and did my job well during pregnancy.

  1.  Automate Your Savings

The principle behind automating your savings is simple: if you don’t see the cash, you won’t be compelled to spend it. 

How did I do it?

I Set up an automated savings plan with my bank, automatically moving funds from my checking account to my savings account.

I requested my boss that a portion of my salary is directly put into my savings account every payday.

How did it help me in maternity saving?

It benefited me from using budgeting software to see how much I was saving in real-time.

  1.  Choose a Bank that Helps Your Financial Goals

Keep your money in accounts with no minimum balance or fees and research rates at neighborhood banks and credit unions.

How did I do it?

Some internet banks offer very reasonable rates, so I used online banking. 

How did it help me in maternity saving?

High-yield savings account worked for me while I saved for maternity leave.

  1.  Avoid the Baby Registry Trap

Baby registries are huge corporations, and they can be expensive. 

How did I do it?

I Only registered for products that genuinely were brand new and looked for gently utilized items from friends, relatives, and resale shops.

How did it help me in maternity saving?

It helped save a lot as I didn’t spend too much on baby products.

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