I’m about to go on maternity leave and I’m terrified about money. What should I do?

Welcome to Money Matters: GLAMOUR’s weekly dive into the world of finance. We’re chatting all things personal finance, from contracting rights in the workplace to expert mortgage advice and saving for your first home, to ISAs and dealing with debt, to help empower you to make better choices. Now more than ever, it’s important to understand our money, but so many of us feel as if we don’t have a handle on it – or worse, feel anxious and scared about money. 

So each week, a woman in a unique situation will give us an honest breakdown of her finances, and our expert will give her easy tips on how to tackle it. 

To submit your own anonymous money diary and get top expert tips tailored to you, simply submit your entry here. And don’t forget to join GLAMOUR’s Facebook group, Money Matters, for more exclusive finance content.

Lauren* is a 35-year-old woman who is about to go on maternity leave. She lives in Birmingham – after moving there with her partner to be closer to her family and to save money – and is concerned that her statutory maternity pay won’t be enough to cover her expenses. 

Her partner earns £2,500 per month, but she is struggling to envisage how much they will earn after paying for bills, mortgages, and childcare.

She is also about to buy her first home, which will use up most of her savings.

Here she shares her money diary: 

MY ACCOUNTS

Current account: £900
Savings account: £40,000

MY INCOMINGS

Annual salary pre-tax: £60,000
Annual salary post-tax: £45,000
Monthly wage pre-tax: £4,150
Monthly wage post-tax: £3,400
Other incoming payments: £0

MY OUTGOINGS

Rent/mortgage: £1,750
Bills: £600
Splurges: £300
Other: £0
Any student loan/credit cards/overdrafts etc: £100 on student loan per month

MY MONEY THOUGHTS

My worst money habit: Eating dinner with friends twice a week (no alcohol).
My biggest money worry: Life on one salary + maternity pay. Life post-maternity leave with childcare costs.
My financial hopes for the future: To pay off our house, have a couple of holidays a year and provide a comfortable life for our new family.

Current money mood: ????????

WHAT MONEY EXPERT MAKALA GREEN SAYS: 

Makala Green is a multi-award-winning Chartered Financial Adviser at Schroders Personal Wealth and has over 18 years of experience in the financial industry. She understands managing money can be complicated and confusing, which is why she is passionate about making financial planning more accessible for all. She is also the Author of The Money Edit; a no shame no blame guide to taking control of your money.

You’re not alone!

Maternity leave is meant to be a relaxing time you can spend with your new baby without the stresses of life getting in the way. Unfortunately, this isn’t always the reality nowadays, so you’re certainly not alone if you feel worried or scared about the impacts and increases in the cost of living after having a baby. However, a little preparation and a clear plan will give you the financial confidence to worry less about your money and focus more on being a new mummy.