Expanding your family brings with it substantial financial obligations. Notably, in the U.S., it is no secret that many employees are not compensated during their maternity leave. In my case, I did not receive any pay during my maternity leave, which resulted in financial tension. However, I took the opportunity to set aside and save money ahead of time. This aided me in focusing on establishing a strong connection with my newborn and have some downtime during my absence from work.
THE SIGNIFICANCE OF PLANNING FOR UNPAID MATERNITY LEAVE
It’s essential to get financially ready for maternity leave. I know a friend who lost her restaurant job because she took several weeks off to give care to her newborn baby. With her job unable to secure her position, she had to reapply when she was back. Although they agreed to employ her again, it seemed like a distressing process.
Bear in mind that the law mandates 12 weeks of unpaid maternity leave, but your employer is under no obligation to pay you during this period. Lack of a financial stream during maternity leave can cause financial difficulties, especially when you should be focusing on caring for your newborn.
In case you are anxious about not getting paid during maternity leave, remember these tips to help you prepare your finances and sustain yourself during your time off.
BEGINNING TO SAVE EARLY
Pregnancy lasting nine months provides ample time to set your house in order financially, and prepare for your baby’s arrival. As you gather baby essentials, ensure you also set aside some funds.
Consider how much you need based on the time you might be absent from work and create automatic transfers to enhance your emergency fund. You can also use work bonuses, gift money, and tax refunds to increase your savings. If you share finances with your partner, evaluate whether stopping work will affect your budget and how much you need to save to cover the shortfall.
ACCRUE PAID VACATION TIME
If you are privileged to have paid vacation time at work, strive to accumulate your days until you commence your unpaid leave. You typically get about two weeks of paid vacation, which could support your income particularly if you are contemplating reducing expenses and maintaining the basics to save money.
CONSIDER WORKING EXTRA HOURS OR AHEAD
Work ahead of time and if your job allows, get paid for the extra hours. This could support your finances during maternity leave. If you’re a freelancer or your job is flexible, you might want to ask for more tasks so you can work in advance. Your supervisor might even permit you to take on some tasks from home as you approach your due date.
RETURNING TO WORK EARLY AND STRETCHING OUT LEAVE
If you’re feeling up to it, you might want to return to work early on a flexible or part-time basis to extend your leave. Your employer might allow you to ease back into a three-day workweek instead of five, giving you extra days off with your baby.
EXPLORE SIDE HUSTLES FOR YOUR PARTNER
If you wish to fully utilize your maternity leave without the added financial concern, consider if your partner can take on a side hustle for additional income. They could sell services on platforms like Fiverr, work with Uber, or take up a flexible part-time job that fits with your family’s schedule.
SELL UNWANTED ITEMS
Another way to earn fast cash for your maternity leave is by selling items you no longer need. If you’re on leave during the summer months, consider hosting a yard sale. You could also sell clothes and furniture locally, trade-in electronics, or sell items online.
CONSIDER A SHORT-TERM DISABILITY INSURANCE POLICY
Postpartum depression, a common issue, can prevent new mothers from returning to work as planned. It might be worthwhile to look into short-term disability policies or inquire about your employer’s offerings. By comparing the coverage offered for treating postpartum depression, you ensure you’re better prepared.
Early discussions about potential maternity leave options and strategies for handling unpaid maternity leave can help avoid financial stress. Explore the available alternatives, you could even negotiate some paid maternity leave with your employer if they do not offer it. It’s seldom done, but it’s worth an attempt.
Have you ever endured an unpaid maternity leave? Your answers could provide valuable insight for others in similar situations.
