This is the fourth in a series of posts for new mommas and new families. Check out some other posts here and here.
American women face a sad truth: even with certain legal protections, maternity leave is still more of a privilege than a right. The Family Medical Leave Act provides women with 12 weeks of unpaid leave, but few women actually qualify for this time with their newborns. FMLA applies to employers with 50 or more employees, in which the employee has worked for at least one year. Even if you do qualify, most cannot afford to go 12 weeks without receiving a paycheck. Per current studies, only 12% of American women have the privilege of paid leave—that’s only 12% of moms with peace of mind to take time with their new baby.
Babies are expensive, that’s all there is to it. With the birth of your child, your budget will likely explode—probably not the best item to cut your monthly income, right? You essentially have to plan for you leave before even having baby. Here are a few tips before expanding your family and during pregnancy:
- Ask about maternity leave when you first interview with your potential employer. Know upfront what you are getting into. Be prepared to negotiate your leave and corresponding benefits much like you would negotiate salary, retirement, insurance, etc. If your boss isn’t willing to work with you, maybe that’s not the job for you OR you’ll need to start preparing before conceiving.
- Plan your conception. We know, this is not as simple as it sounds. Unless you are completing IVF, you cannot necessarily plan and guarantee you will conceive at a certain time. It’s also not the most romantic notion. By plan, we mean start saving ahead of time. Also, think about your significant other’s paycheck—are they salaried or earning on commission? Is there a time of the year that your spouse’s income dips?
- Start saving as soon as you find out you’re pregnant. Those 9-10 months will be crucial to your maternity leave budget. Look back at your monthly expenses so you know exactly what you need to save and what you can change. Specifically:
- Don’t just look at the last few months but mirror the months of your leave. If you will be home from June-August, look specifically at your expenses from last June-August. Your expenses in June are very different then expenses in say January. Ex: an increased electric bill during summer months while blasting the AC.
- Then add in cushion for baby’s needs like diapers, wipes, formula, and incidental items you originally didn’t think you’d need. Ex: our little guy has some serious reflux requiring we keep him elevated, so we had to purchase wedges and other items to keep him healthy and comfortable.
- Once you know exactly what you need for the total leave, determine how much you need to save from each paycheck.
- Open a new savings account specifically for your leave so you aren’t tempted to use that money for other items.
- Analyze your spending and cutback where you can. This applies to personal expenses as well as things you’re buying for baby. If it means having the ability to stay home with baby longer and maintaining your expenses, maybe you don’t need the luxury crib and dresser set or the fanciest stroller on the block. Maybe you cut back on eating out, do less manicures or haircuts, and see what subscriptions can be cancelled.