How To Prepare For Maternity Leave Financially

If you are entitled to leave payments figure out how much this is and plan your maternity leave budget around it.

How to prepare for maternity leave financially.

Carl september 25 2020 september 25 2020. The time off work spent with a newborn is one of the most memorable times in a parent s life. How to financially prepare your family. How to financially prepare for maternity leave in canada we are incredibly blessed here in canada to be able to take a long maternity leave to be home with our babies.

Always do your research and communicate openly with your employer. After all saving for maternity leave is the precursor to a total budget overhaul once the baby arrives. Just because your maternity leave doesn t start for 6 months doesn t mean you should wait to prepare financially. Saving for maternity leave.

This means that you will get a paycheck even when you do not physically go to work. H owever most companies cap your pto off way below this. How to financially prepare your family. If you estimate five weeks paid leave budget for 3 4 weeks and keep the surplus aside for your emergency fund.

Saving for maternity leave. Begin saving money from every paycheck and from those reduced expenses. I recommend always taking the conservative approach. This can be a time of amazing bonding with your baby but for many it is a stressful experience with the addition of a much reduced family income and financial strain.

My wife and i compiled a list of the most important things to do to financially prepare for maternity leave. The family and medical leave act fmla allows eligible employees up to 12 weeks of job protected unpaid leave from work per year for certain family and medical reasons including for the birth of a child. Paid time off is a wonderful way to financially prepare for maternity leave. Like any other major life event financial planning is crucial to make the experience as stress free as possible.

You can learn more about parental leave and your finances as well as other financial issues that affect women at women s money week. With so many unknowns taking ownership of your financial circumstances to prepare for a baby is empowering. When you prepare financially for your maternity leave you will enjoy that time with your child that much more. This post is a part of women s money week 2015.

To avoid financial shocks work with your family to follow best practices to create a budget that works for you. To financially prepare for maternity leave you need to know how long you plan to be away from work without pay. The time off work spent with a newborn is one of the most memorable times in a parent s life. To take a full paid maternity leave you d need 480 hours of pto if you work 40 hours week.

It s tempting to take those savings and spend them on other things you need but you never know what your maternity leave may hold for you. We also created a free financial checklist baby on the way. Which covers many of these items below and more with additional resources.