Planning for a maternity leave can be a recurrent worry for most pregnant mothers – especially if it is an unpaid maternity leave. If you are like 41 percent of America, you are living paycheck to paycheck, meaning the thought of saving money is a little more than daunting. Here are some practical tips to ease some of those financial concerns so you can concentrate more on enjoying your pregnancy and less on the impending maternity leave.
Paid vs. Unpaid Leave. If your company offers a paid leave, you are lucky. However, many companies do not or cannot. Fortunately, the federal Family Medical Leave Act (FMLA) allows employees in a company of 50 or more employees to take up to 12 weeks off as long they have been with the company for more than a year (http://www.dol.gov/esa/whd/fmla/). Unfortunately, it is unpaid unless your company offers a paid leave. Find out from your Human Resources department exactly what is available to you. If your company can offer even 50-60% of your income, that can make a huge difference.
Start Saving Early. As soon as you find out you are pregnant (or even earlier if possible), take a close look at your finances. Write down all of your monthly expenses from mortgage/rent, to groceries, eating out, insurance, car payments, credit card bills, and any incidentals. Compare that to how much you take in each month and see how much is left over. From here, you can find areas where you can scale down (especially eating out and those daily lattes). Next figure out how many weeks you plan to take off for maternity leave. How many paychecks will you not receive during that leave? Any extra money left in the monthly budget should go directly into a separate savings account to build up for your leave.
Set Aside Unexpected Income. Are you getting a tax refund, money for your birthday, or a bonus at work? Put it straight into your separate savings account.
Sick Leave and Vacation Time. Most companies will allow you to use any accrued sick leave and vacation time first. Find out from your Human Resources department what your company has to offer. Although it is not required to use this time by the FMLA, some companies may require it to be used.
How Much Time off is Enough? It’s hard to predict now how much time it will take for you and baby to establish bonding, sleep rituals and breastfeeding. Some women jump at the chance to return to work after 4 – 6 weeks, while others consider quitting the workforce altogether to stay at home and make the most of this precious time with baby. Initially it’s best to plan for as long a leave as possible. If you are ready to return to work earlier, you can always arrange to do so. However, if you plan for a short leave and find you need more your company will expect you back anyway. You can also find out if your company will allow a gradual return to work, or even working part time from home for the first few months. It’s better to err on the side of a longer leave and go back early if needed. This way you and baby will have the opportunity to lay down a more solid foundation for your ultimate return to work.
