Family Planning and Money?

Question

Me and my wife are thinking of having a child next year. I am only concerned about the expenses as obviously they are going to increase. My wife is a teacher and i am earning around 20k. We have got mortgage on and outgoing expense are roughly around 2000 a month at the moment. They are going to be more after having a child as my wife will on paternity leave and also child expense as well ... do you think i am worrying over nothing or i should think about the finance first ... is there any sort of finance planner available to help me in saving and sorting the money?

Answer 1

If you think about the financial side of having children for too long you will never be able to afford them!

Lots of families earn less than you and manage , and your wife will be able to return to work (from maternity leave), if she wishes.

Children are expensive but if you both feel ready for the commitment then go ahead and enjoy baby making!

Answer 2

I don't have any kids yet, but I am getting married next year and want to try for a baby not to long after that.  My parents, fiance's parents, and everyone I know who is their age, or has kids tell us that you will never be "ready" (financially).  I know this probably won't set your mind at ease, but everyone tells us not to wait until we are financially ready or we will never have kids.  We both have good jobs now but we are about to buy a house, we both need new cars, and are about to get married, so money will be tight next year.  However I realize what everyone keeps telling us is true because we'll always have something to pay for, so if we wait until we think we are ready, it might be too late.  Besides there are so many people from many levels of income and different financial situations who have kids and are making it, so why can't we?  The only thing you will want to save up for is the period of time your wife will be out for maternity leave if she has to take some time without pay.

Answer 3

if you wait to be finacialy stable to have a baby, then you will never have one.

Answer 4

know where your coming from, been with my husband ten years, thought about having children eight years ago but i was poorly and we went off the idea. now we are in the same situation as you, if i gave up work to have children( i have a very physical/manual job and would probably have to stop earlier than your wife as a teacher) we would not survive for long on my maternity pay and his wage. i would want to go back to work but then theres childcare to pay for. looks like for now we will just keep practising and pray for a lottery win?!?

Answer 5

20k is not enough. I think what you guys should do is what for 2 years, save money and then get pregnant. try getting pregnant around october and november that way the baby could be born in the summer which she will get off from work with pay anyway. and she can extend her maternity leave. she will be with the baby for at least 5 months.

Edith: i don't think it's a good idea to buy stuff for a baby when you don't even know if you will be able to get pregnant. waiste of money.

Answer 6

you can contact your local benefits office for a calculation of your expected income after birth

Answer 7

Start by buying baby things about a year or two before you have one.  Once a month buy something you'll need for $100 or so.  Buy clothes second hand from ppl in the neighbourhood and at garage sales (you can get lots of good deals!).  I started collecting things when I found out my daughter was on her way and lots of people just give you stuff and buy you stuff.  A lady that had twins sold me all her clothes and a highchair for $250.  I had clothes from size 0 - 3 years all in great condition from Gap, Old Navy, Carter's Baby and the like.  I kept them so I can use them when I have another baby :D .  In all the spending I have done on my daughter and my son (due in Sept) I have only spent about $1400.  Also using cloth diapers during the day and disposables only at newborn and at night saves a lot of money too, as well as breast feeding.  We live on an income of about $2000 a month and we're not missing out on anything at all.  We have cable, internet, phone, and the like.  We parked our car though because he's the only one working and doesn't have a liscence so there wasn't much sense in having it anymore.  It's not really that the child will cost a lot, but how much you're willing to pay for the material aspect of the items.  Some people want new all the time for each baby and some are willing to settle for second hand good condition stuff.  For our daughter I got everything new and matching because I'm keeping it until I'm done having 4 babies which is what we have planned.  Kids are pretty happy just being loved, having full tummies and somewhere warm and comfy to sleep.

Answer 8

The Maternity pay for teachers is excellent:

    * four weeks' full pay;

    * two weeks' 90% pay;

    * 12 weeks' half pay plus SMP (£117.18 per week)

    * 21 weeks' SMP;

    * 13 weeks' unpaid leave.

As she can work right up to when the baby is due you can start to buy all the major things the baby needs while you are still both being paid (afterall, a pregnancy is 9 months long and you could take up to a year to fall pregnant)

Once you have the baby you will have the day to day expenses of course, but a teacher has a fairly good salary (I don't know where she is on the scale but I was on number 3 of the pay scale when I had my first child)

You just have to be sensible - which you obviously are, plan ahead and budget.  

Everyones gets by in the end.  I was on U1 when I had my second baby and decided not to go back to work at all.  We manage on what my husband earns - and have since had baby number 3 :)

Answer 9

Just have the s*x and prevent the baby coming if I were you - did you know that a child will have cost you around £100,000 by the time they're eighteen years old - if you're from the Kindergarten Colony just do the exchange rate into dollars - mind you over there it might be even more knowing how insular and self-absorbed that lot are!!!

Answer 10

£20K is plenty. But I would start putting cash away now- about £150 to £200 a month. Then when your wife is pregnant all you have to do is spend the cash on the nursery and set up.

Theres alot you can do to save money- go on ebay and buy a pram (I bought mine brand new from ebay for £60 when the price in the shop is £250) and buy Terry Nappies rather than disposables. You could also use Freecycle to find any good items the baby can play with (play gym etc).

The only things you should absolutely buy new are: carseat, sterilizer, bottles and clothes. That'll set you back about £200 for a good carseat, £25 for a sterilizer, £30 for a multipack of bottles and you'll need a baby starter set of clothes as well as socks/jumpers/babygrows costing you about £100.

I suggest getting to places like ASDA george and Tesco - they have a baby range thats great value for money. Buy clothes from 0-3 months and 3-6 months. You'll be surprised just how quick they grow!

Shop about and see what you can find. If you want to make an investment plan see your bank. I'm with Lloydes TSB and they sorted out everything- financial planning and when the baby got here helped me invest her CTF cash.

Remember you will be entitled to child benefit and your wife will have her maternity allowance.

I'm sure you'll be fine though.