Taking time off work to welcome a new family member is an exciting milestone – and the perfect opportunity to reflect on your finances.
Big changes at home often mean changes to your budget. And while you may need to adjust your spending habits to meet some new expenses, you could also be entitled to a range of benefits and support designed to help families thrive.
Here are three practical steps to help you feel confident about your family’s financial future during this special time.
1. Take control of your budget
Managing day-to-day finances is front of mind for many – indeed, research from the Standard Life Centre for the Future of Retirement shows 40% of UK adults say it’s their biggest financial priority for the year ahead.*
If that sounds familiar, starting with a clear picture of your income and expenses can make a real difference. A simple budget planner helps you map out what’s coming in and going out each month.
Try the ‘piggy bank’ method to break your spending down into categories like essential bills, monthly subscriptions and discretionary purchases. This makes it easier to spot quick wins to cut back, if you need to – such as switching to a cheaper broadband provider, cancelling a gym membership you’re not using, or trimming your non-essential spending.
Need help getting started? The Standard Life mobile app and your pension dashboard give you easy access to free tools and resources, like Money Mindset, to help keep your financial wellbeing in good shape.
2. Check what support you could be entitled to
Government benefits and grants can make a big difference. Use a benefits calculator to see what you might qualify for. Common options include:
- Universal Credit
A regular payment to help with living costs, which is available to those on a low income, who are out of work or are unable to work - Child Benefit
An allowance that’s paid to parents or guardians who are responsible for a child under the age of 16 (or under 20 if they’re in full-time education or approved training) - Sure Start Maternity Grant
You could get a one-off payment of £500 to help towards the costs of having a child. If you live in Scotland, you won’t qualify for this benefit, but you can apply for a Pregnancy and Baby Payment instead. - Maternity and paternity pay
This is available to those earning at least £125 a week and having at least 26 weeks of continuous employment with the same employer. - Maternity exemption certificate
You could be entitled to free prescriptions and NHS dental care while pregnant and for 12 months after the birth of your baby. - Adoption pay and leave
These benefits are available to those who are adopting or having a child through surrogacy. You must be earning at least £125 a week and have at least 26 weeks of continuous employment with the same employer.
You can find more information on each of these benefits at gov.uk.
3. Make your money stretch
Smarter spending habits can really help – especially at a time when one in four adults say they’re finding it difficult to live on their current income.*
Many UK supermarkets run loyalty and reward schemes. If you shop somewhere regularly, make sure you’re signed up and are taking advantage of what’s on offer – it’s an easy way to get more value from your everyday essentials.
As a Standard Life pension holder, you also have access to Fizz Benefits – a platform that offers discounts and rewards from a wide range of UK retailers. Simply head to the Standard Life mobile app or your pension dashboard to see what’s available.
Remember to keep an eye on your pension
Taking paid parental leave can affect the amount paid into your pension. That’s because, in most cases, your contributions are based on your current level of pay – which may be reduced while you’re away from work. Your employer’s contributions, however, are usually calculated on your earnings before you went on leave.
If you take additional unpaid leave, neither you or your employer need to contribute – unless your employment contract or scheme rules say otherwise.
It’s worth checking with your employer to understand their policy on pension contributions during parental leave. That way, you can plan ahead and make informed decisions about your long-term financial goals.
Look ahead with confidence
Welcoming a new family member is a wonderful milestone – and with a little planning, it can also be a chance to feel more confident about your financial future. By taking control of your budget, exploring the support available, and making the most of everyday savings, you’ll be setting your family up for success.
Small steps today can make a big difference tomorrow – so take advantage of all the tools and resources at your fingertips.
*Retirement Voice 2025, Standard Life Centre for the Future of Retirement
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