Money expert Gemma Bird, known as The Money Mum, has shared three rules that helped her manage her finances during maternity leave. The mum-of-two, who paid off her mortgage by age 37, says planning ahead was key to covering the costs of a newborn.
When her son Brody was born, she earned £1,500 a month but knew her maternity pay would drop to £650. She explained: "I had a really good maternity package the first time, the second time I didn't, because I worked for a bank. I had three months full, three months half, three months statutory, so that's really good, but I was taking a year off, then I had three months with no pay."
Statutory Maternity Pay basics
According to Gov.uk, Statutory Maternity Pay (SMP) is paid for up to 39 weeks. Those eligible get 90 per cent of their average weekly earnings (before tax) for the first 6 weeks, followed by £194.32 or 90 per cent of average weekly earnings (whichever is lower) for the next 33 weeks.
Gemma, 45, said she followed three rules after giving birth to ensure she didn't struggle by the end of her maternity leave.
Rule one: Save as much as possible
During the nine months she was paid, she saved as much as possible to cover the remaining three months of her year-long leave. She warned: "So if you're looking at taking a year off, don't forget you only get nine months of statutory and anything that your work tops up. So try and think about that before you go off, so that you've filled your three months as well. That's what we did."
Gemma says she developed a savvy approach to money from a young age, saving by looking for deals, second-hand items and discounts, while ditching expensive habits like gym memberships, daily coffees and unnecessary subscriptions. This helped her save thousands, contributing to paying off her £225,000 mortgage by 37 while earning £25,000.
Rule two: Look for deals
On maternity leave, she also looked for deals on baby groups, finding one at her local church for just £1. She said: "The real cost as well when you have a baby is doing things as a mum. I went to like a church group once a week, it was a pound. I got a coffee, I got a cake, we did singing time, I met loads of friends."
She added: "And then they also wanted to meet up sort of like at coffee shops, but I was literally on maternity pay, I was self-employed, I was when I say poor, I was unbelievably poor."
Rule three: Don't overspend
Thirdly, Gemma says it's important not to overspend before the baby is born on items like breast pumps and too many babygrows. She also champions hand-me-downs, such as a Moses basket. "A lot of mums don't know if they're going to breastfeed or not, do they? So I always say like don't buy the breast pump, don't buy everything until you've had that baby," she stressed, noting that things can be ordered quickly when needed.
"Like people buy so much stuff that they don't actually need, and look at obviously like second-hand, going to charity shops, ask friends and family, you know, for things like your baby clothes, maybe a Moses basket that you can pick up."
Gemma's top tips for new parents
- Shop second hand, but shop smart: Not everything needs to be bought brand new - some baby items can be bought second hand for a fraction of the price such as clothes, prams, bouncers, but car seats and mattresses should be bought new for health and safety purposes. To save money on bigger purchases, set price alerts on an Amazon wish list to get the best deal. For second hand items, look out for deals on Amazon's Second Chance Store, like refurbished baby monitors.
- Make repeat buys easier: Items like wipes and nappies can be managed with Amazon's Subscribe & Save, with recurring deliveries on eligible products and potential savings on repeat orders.
- Make the most of existing memberships: Prime members have access to fast, free delivery, which can be useful for new parents who've forgotten an item or need something at speed.
- The items you'll buy but barely use: Split your shopping list into essentials and nice-to-haves, and set a budget for each. Babies grow quickly, so stick to a few practical baby grows for early days. Skip designer baby bags and opt for non-branded ones.
- If you've forgotten, don't panic: You don't have to buy everything immediately. Amazon's Add to Delivery feature allows Prime members to add forgotten items to an upcoming delivery, avoiding multiple separate orders.
