Talk money early:
The prospect of having to survive on a reduced wage during maternity leave can be a more than daunting prospect. It makes sense to find out exactly what your earnings will be as early as possible.
Your entitlement to pay during your basic 26 weeks maternity leave depends on your employment contract. Employers are not obliged to pay maternity leave. You may qualify for Maternity Benefit from the Department of Social Protection depending on your PRSI contributions. This may be paid to your employer and they may continue to pay your wages. In cases such as these you may be entitled to a tax and PRSI refund. More information about this is available on www.revenue.ie.
You can also avail of a further 16 weeks of unpaid maternity leave. Generally, you are not paid by your employer and you do not receive Maternity Benefit for these extra 16 weeks. However, it may be possible for your tax credits to accumulate if you opt for additional maternity leave, so you should check this with your employer.
If you are pregnant and receiving jobseekers benefit, it is possible to continue receiving this while pregnant. You will be considered fit to work unless you suffer from complications during pregnancy or have any underlying illness. If you are receiving jobseekers benefit you should notify your local social welfare office that you are pregnant. For more information on entitlement and on signing on while pregnant, see www.welfare.ie and www.citizensinformation.ie.
Child benefit
Presently, regardless of whether you are working or not you are entitled to claim Child Benefit. This payment will be paid to parents or guardians of children under 16 years of age or under 18 years of age if the child is in full-time education.
There are lots of benefits and entitlements available to expectant parents relating to both employment and social welfare which you may be entitled to avail of depending on your circumstance so it’s important to educate yourself about the information available. Visit www.welfare.ie and www.citizensinformation.ie for further details.
Come up with a plan and stick to it:
One of the very first things that an expectant mum will do when she finds out she is pregnant is start looking at baby stuff. Amidst the ‘oohing’ and ‘aahing’ at how cute everything is, you may also be overwhelmed at just how expensive everything is. Our research has shown that new parents are shelling out upwards of €4000 on setting up for their new arrival.
Once you recover from the shock of how pricey everything is, make a plan to sort out your finances. Set up a regular savings account to start saving for baby supplies and to cover any reduction in income during maternity leave and then make a list of exactly what you think you are going to need.
The best way to become an avid saver is to get yourself into the habit of making regular deposits into this account each time you get paid. One way to make this habit easier is to set up a standing order or direct debit
Don’t be put off if you have a tight budget, simply start saving a small amount each month which you can then increase as you become used to that money not being there. Even a small amount such as €100 a month can make a difference. Often, both you and your partner can pay into the same account and, almost without realising it, the amount in there really adds up.
While this might sound simple, making a list when doing groceries can help keep a bank balance healthy and keep you out of the red. Decide on a strict budget and keep track of purchases in a notebook or in your phone. This will help you get an overall picture of what you are spending.
Borrow and bargain hunt:
There are lots of ways you can ease the financial burden of preparing for your little one’s arrival. First and foremost, try to borrow as much as you can from friends and family. If this isn’t possible there are other ways to get what you need without spending an absolute fortune. Think about buying certain items second hand, try websites like eBay, Done Deal and Gumtree for some real bargains.
Shop around online to get the lowest prices as there can be a considerable difference between stores. Websites such as Amazon can offer huge reductions.
Don’t forget to make the most of voucher codes and cashback websites while you shop as it can really make a noticeable difference when it comes to big money items like pushchairs.
Read more: What can you expect once baby arrives?
