High-profile pregnancy announcements have given the internet plenty to celebrate over the past few weeks, with serial entrepreneurs Molly-Mae Hague and Grace Beverley both sharing their baby news.
And while planning nursery interiors, researching prams and buying tiny outfits is undeniably the fun part, it’s also worth thinking about the financial side of having a baby.
Because alongside all the excitement, starting a family can bring some big changes to your income, your spending and how secure your money feels especially if you’re planning to take time away from work.
A little financial planning now can make that transition feel a lot calmer later.
1. Know what you’re entitled to
Before planning anything else, get clear on what support actually exists.
If you’re employed, check your company policies around:
- maternity leave
- paternity leave
- shared parental leave
- adoption leave
Some employers offer enhanced maternity packages, while others provide only the statutory minimum.
And don’t forget government support. In the UK you may be eligible for things like statutory maternity pay or other family benefits.
Knowing what’s available gives you the starting point for every financial decision that follows.
2. Know your numbers (and model a few scenarios)
Once you understand what income you’ll receive, the next step is working out what life will actually cost during leave.
Ask yourself:
- Do you want to take 6, 9 or 12 months off?
- Will you share parental leave with a partner?
- Will household income drop and by how much?
Then compare this with your current spending.
Many people discover there’s a temporary gap between income and expenses. That’s normal and the earlier you know about it, the easier it is to plan for.
At Financielle, we always recommend modelling a few different scenarios so you can find a leave plan that feels financially comfortable, not stressful.
You can model your budget in the Financielle App to get a full understanding of what your budget looks like now vs when the baby arrives.
3. Build sinking funds before your income drops
One of the biggest shocks during maternity leave isn’t big baby purchases, it’s normal life expenses that keep arriving.
- Car insurance.
- Hair appointments.
- Annual subscriptions.
- Travel costs.
This is where sinking funds come in.
Sinking funds (link to SF blog) are small savings pots you build in advance for known expenses. By putting money aside before leave starts, you avoid those “oh no” moments mid-leave when a big bill lands.
Even setting up a few key funds can take a huge amount of pressure off.
4. Watch out for the hidden financial gaps
Income isn’t the only thing that can change during parental leave.
Other areas that can be affected include:
- pension contributions
- bonuses
- investment contributions
- career progression timing
Financielle co-founder, Holly, experienced this firsthand:
“I was so excited about maternity leave, I didn’t check how it would affect my pension. I didn’t realise that my personal contributions had stopped, which meant I missed the government top-ups too. Looking back, I wish I’d asked the right questions earlier and created a plan ahead of time.”
Understanding these gaps early means you can decide whether you want to top things up manually or plan around them.
Consider making up your personal contributions with the family income, view it as a bill rather than a bonus.
5. Don’t bury your head in the sand
Planning a baby is joyful and let’s be honest, picking prams and baby clothes is far more fun than opening a spreadsheet.
But a few hours spent planning your finances can make a huge difference to how maternity leave actually feels.
Instead of worrying about money, you can focus on what really matters: adjusting to life with your new baby.
6. Protect yourself and your family
Take a look at your options when it comes to protecting your family, that includes things like Life Insurance and writing your will.
Claim your free will until March 31st, 2026 with Octopus Legacy here
Call our partner Life Search* to get a free Life Insurance review and find out how you could protect you and your loved ones.
Listen & watch
Listen to the Financielle team discuss a maternity leave dilemma on Episode 66 of The Vault podcast here