11 Financial Tips to Survive Unpaid Maternity Leave (2024)

If your company doesn’t offer paid maternity leave, you’re actually part of the majority: on average, only 17% of civilian workers (private industry and government workers combined) in the United States receive paid family leave.¹

Preparing for partially paid or unpaid maternity leave can feel intimidating, stressful, overwhelming, and maybe even lonely, despite how common it is. Many women find themselves wondering if they’ll be forced to take a much shorter leave than they need, or if they’ll have to dip far into their savings to keep themselves afloat.

But if you’re willing to get creative, you can figure out how to make money on maternity leave, and compensate for even three full months of unpaid leave (or however long you want to take off work). Other women have faced the uncertainty, and each one’s road to financial stability during maternity leave has looked different. We’re here to help you take a deep breath and start researching the options and resources that make the most sense for you.

But what’s the best way to get started?

By resolving to begin outlining your financial plan now.
By figuring out how much money you need to raise or save.
And by reading our 11 financial tips to survive unpaid maternity leave.

Start now, stress less

The sooner you start brainstorming a plan to fully compensate your maternity leave, the better. Give yourself time to make changes to your plan, or the time to try one method, then something else. And if you’re creating a plan to cut expenses, the more months you have before your leave, the more money you’ll put in savings.

Resolve to begin outlining your financial plan now.

If this feels like one more impossible obstacle to tackle before your leave (while dealing with the unpleasant symptoms of pregnancy):

Ask for help. Consider asking one other person to help you (or talking to a financial advisor).
Adjust expectations. Don’t expect to create your financial plan in one sitting.
Be flexible. Try multiple money-making and saving strategies to figure out what works for you.

Having a flexible financial plan for making it through your months of unpaid leave will not only reduce stress, but, even more importantly, will allow you to take that time to focus on what truly matters: your physical and mental health, and bonding with your baby.

Figure out how much money you need

So you’ve resolved to create your financial plan, but what’s step one? Figure out how much money you need to save or raise to ensure financial stability throughout your entire leave. It depends on your specific circ*mstances:

How long do you plan to be on maternity leave?
What are your anticipated expenses during your leave?
How much money do you need to cover these expenses during your leave?
Is your leave going to be unpaid or partially paid?
What additional income must you bring in to make up for lost income during your leave?

If you won’t be receiving any pay during your leave, then you’ll need to raise or save for all your necessary expenses for the length of your leave.

Once you know the amount of money you need, it’s time to get creative! Here are 11 financial tips to get you started. Don’t be afraid to try more than one method.

1. Open a new bank account that pays you

Banks often offer deals for opening a checking account with them and setting up direct deposit. They may give you $200-500 for your new account. Shop around and see if there are any nearby banks offering this kind of deal, or try searching “new bank account incentives” on Google.

Before opening any account, make sure to pay close attention to the requirements, such as minimum deposit and minimum balance guidelines to avoid additional fees. If you follow the bank’s instructions, usually after around 90 days, the incentive money will be yours.

Before opening any account, pay close attention to the requirements

You can keep this account and continue to use it to put aside money for when you are on leave, or not. If you choose to close your account at any point, make sure to check bank policies and ensure your account isn’t overdrafted or has a negative balance when you close it—that can affect your credit score.²

2. Look into local resources and supplemental programs

You might qualify for a variety of grants or other assistance depending on your location, your job status, your income, disabilities, education, health or other categories.

Use the federal Benefit Finder here and complete the survey to see what programs you qualify for.

A popular resource for pregnant women and children is the Supplemental Nutrition Program for Women, Infants, and Children (WIC). This program serves pregnant and breastfeeding women and children up to 5 years of age. To qualify, you have to satisfy four requirements:

Categorical (you must pregnant, postpartum, breastfeeding, or have an infant up to his or her first birthday, or any children up to their fifth birthday)
Residential (you must live in the state in which you apply)
Income (you must have an income at or below the amount your state sets as a requirement)
Nutrition Risk (your height, weight and blood are often examined)

Check out the US Department of Agriculture’s website and select your state under “who to contact” to call your nearest center for further information.

WIC helped my family thrive

I qualified for WIC when my husband was serving in the military. After confirming that I qualified for the program, I was provided with a card to use at participating grocery stores for specific items.

3. Cut out unnecessary expenses

I’m sure you’ve realized that saving money throughout your pregnancy can be helpful in surviving unpaid leave. But without a clear budget or personal finance plan for saving, it’s easy to fall off the wagon and revert to normal spending habits.

If you want to know whether this is the only plan you need to make it through unpaid leave without additional assistance, try these 3 steps:

1. Identify and add up necessary monthly expenses. These are the expenses you need to survive: rent or mortgage, food, medicine, insurance, transportation, phone, etc.

2. Identify and add up unnecessary monthly expenses. These are things you *technically* can survive without: entertainment, cable tv, monthly subscriptions, eating out, coffee runs, shopping sprees, etc.

3. Compare these expenses. If your unnecessary monthly expenses add up to:

a. half of your necessary monthly expenses, cut them out of your lifestyle for the rest of your pregnancy and set the money you would have spent aside (maybe in your newly created bank account). This money should be enough to get you through three months of leave.

b. less than half of your necessary monthly expenses, cut them out of your lifestyle for the rest of your pregnancy, set the money aside and utilize a few more tips from this article. The amount you set aside won’t be enough to cover the necessary expenses for three months.

c. more than half of your necessary monthly expenses, you don’t have to cut out everything. Just make sure to set aside the value of at least half of your necessary expenses each month to ensure you will have enough to cover three months of leave.

This savings plan is most effective if you begin it during the first three months (or first trimester) of your pregnancy, leaving you at least six months to save.

Is it worth it?

Cutting out all unnecessary expenses for six months may seem like a drastic measure to take (unless a strong coffee aversion makes it easy to avoid coffee runs for a while). However, making the sacrifice and setting the money for all unnecessary expenses aside could actually provide a “paid” or mostly paid maternity leave. Especially if you are facing a completely unpaid leave or don’t want to have to find additional ways to make income.

If you are offered a partially paid leave or want to use additional ways to save money, you can alter your savings plan and only cut out some unnecessary expenses. You may even find after cutting out certain expenses that you want to continue to live without them in the future.

4. Reconsider current necessary expenses

Just because you have car insurance or a cell phone plan doesn’t mean it’s the best deal for you. Reexamine your current necessary expenses to see if you can land a better deal and save more money each month.

Reconsider your car insurance

For car insurance, review your current insurance coverage and eliminate insurance options you don’t need. If you are paying for full coverage for a car that has a low value, you might be overpaying.

You might be overpaying

For example, if your paid-off car is worth $5000 and full coverage is $180 a month, you’re paying $2160 a year—almost half your car’s value! Just make sure your adjusted value is at least the minimum your state requires.

Reconsider your phone plan

For phone carriers, consider changing your plan if your contract isn’t up. And:

See if your provider is offering a better deal: prepaid, less data, etc.
If you are always around wifi, you may not need to pay for unlimited data.
Pay attention to how much data you are using each month by checking your bill or phone app to see if you can reduce your plan and save more money.
If you are stuck in an expensive plan, you might be able to find a carrier that will buy you out of it and give you a better deal.

Explore alternatives for other expenses

Explore your options for other types of insurance or necessary expenses, to see if you’re really getting the best deal. The earlier in your pregnancy you switch, the more money you’ll have saved by your leave.

5. Look into part-time work or side hustle jobs

Every source of income helps, even small ones. If you’re able to work a part-time job, even for a few hours a week, consider applying. Put this extra money into your new bank account you opened or in your current savings account. If you work for it now, you may enjoy the benefits of your labor later.

The good news is that many side hustles for extra cash can be made from home on your computer. Here are some work-from-home jobs to consider:

6. Get paid for things you’re already doing

If you shop, exercise, or enjoy offering your opinion, you could be making money. There are a number of free apps that send you rebates when you shop, reward you for exercising, or pay you to complete surveys.

Here are some of my favorites (but there are countless more to try out):

Rebate apps:

Workout app:

Paceline

Survey app:

Google Opinion Rewards

With most money-making apps, you can’t cash out your earnings until you’ve accumulated a certain amount—usually around $20-25.

Refer your friends

One way to gain cash quicker with these apps is to refer friends. If the person you refer joins the app, there is often a monetary reward. I like to cash out my rewards to satisfy my coffee cravings, but you can also use rewards for grocery or entertainment gift cards. You can even get cash by withdrawing your earnings with PayPal.

7. Create an HSA for prenatal and delivery costs

Medical bills for prenatal appointments, labor, and delivery will vary depending on the type of insurance coverage and delivery you have (vagin*l or c-section). While it’s unlikely you’ll be able to shop around for the best money-saving insurance for this pregnancy, it’s worth looking into your current plan to anticipate future costs.

If you have a high-deductible plan, consider creating a Health Savings Account (HSA) to start saving for your pregnancy-related medical bills. Here are some facts about HSAs:

HSAs are like a personal savings account, but for health expenses.
The money you deposit into your HSA will not be taxed.
Your employer can contribute to your HSA.
At the end of the year, any unused money rolls over to the next year and is yours indefinitely.
Some HSAs pay interest on unused money, and these earnings are also tax-free.
If you take money out of your HSA for non-medical expenses, you will have to pay taxes on it and a possible penalty.³

You may find that opening up an HSA is also beneficial for future, non-pregnancy related medical bills.

8. Substitute short term disability for maternity leave

Short term disability insurance (SDI) provides compensation for income loss due to an illness or injury (including childbirth) that leaves you unable to work. This compensation is typically around 40-80% of your usual take-home pay.⁴

Many company benefit packages offer some form of SDI, so you may already receive benefits without realizing it.

You may already receive benefits without realizing it.

The amount of compensation you receive for SDI depends on your company’s particular policy. It also depends on the circ*mstances of your birth. For example, you may receive more time off and compensation from SDI if you had a c-section or a vagin*l birth with other complications. In general, you can expect around 6 weeks of paid SDI leave and compensation for a typical vagin*l birth.

This means that SDI is considered paid leave, and may be taxed, even if you aren’t receiving 100% of your usual pay.

Ask about your current coverage

If you are already pregnant, talk to your HR department as soon as possible to find out what your coverage options are, and whether you can use SDI to receive pay during your leave.. If you have SDI coverage, ask your HR rep:

Do my short term disability benefits consider pregnancy to be a pre-existing condition?
Do my short term disability benefits include parental leave?⁴

When choosing to use SDI benefits during your maternity leave, be mindful of the “elimination period” required by your policy. The elimination period is how long you have to be out of work before paid benefits kick in. If you have a long elimination period, you will have to wait longer after birth to get paid.

SDI coverage after conception

It is possible that SDI won’t be included in your company benefits package, as it isn’t required by federal law in the United States, although some states require SDI coverage. And although you can purchase your own SDI from a third party insurance company, many policies won’t approve claims related to an existing pregnancy if you purchase coverage after conception.

Therefore, your best chance at receiving paid SDI benefits during maternity leave is if you were already covered by your employer before you conceived.

9. Negotiate for partially paid maternity leave

Your company may not offer any official maternity leave or have maternity leave policies in place. But that may give you some flexibility to negotiate, such as asking for a certain number of weeks of paid leave. You may not get a full twelve weeks covered, but you might get five weeks of compensation.

Here are some negotiation tips from Lean In worth trying:

1. Frame the negotiation as a cooperative effort.

“I would like to discuss getting paid maternity leave and I would love to work together to find the best approach.”

2. Show positive emotion with body language and tone.

“Thank you for meeting with me. I’ve been looking forward to having this conversation.”

Avoid crossing your arms or giving a “closed off” appearance.

3. Use key phrases to include your negotiation partner.

“If you have other suggestions, I would love to hear them too.”

4. Problem solve together.

Offer possible solutions (partially-paid maternity leave, the ability to work from home) and be open to feedback.

If your employer agrees to paid leave for a month or more, that’s less money you need to save to compensate for the rest. If you can, put the maternity leave plan you and your boss agreed to in writing.

For more tips on requesting maternity leave or recognizing pregnancy discrimination, check out:

How to write a maternity leave request letter to your employer
How to know if you’re experiencing pregnancy discrimination at work

10. Lean on your community.

Friends and family may be willing to pitch in free childcare, meals, groceries, or baby registry items. It won't restore your income, but community support is vital for all new moms, no matter what. Send out a link to your baby registry or ask a friend to create a Meal Train for your leave.

Some moms have even crowdfunded compensation for their entire maternity leave from their community, to make unpaid leave possible.

11. Cash in your personal paid-time-off (PTO) and sick leave

After negotiating with your boss for paid maternity leave, whether it be for three months or just a few weeks, consider cashing in your paid time off or sick leave to help compensate a couple weeks of your maternity leave.

If you decide to use short term disability insurance, you may be required to use your PTO or sick days before short-term disability kicks in.

You may be required to use your PTO or sick days before short-term disability kicks in

Otherwise, you may or may not want to use up all of your PTO or sick leave to compensate for lost income during maternity leave (unless circ*mstances or company policy require you to). You know your body best: how often you usually get sick, how likely you are to have remaining sick days at the end of the year, etc. It could be helpful to save a few days for unexpected illness (for either you or your baby), doctors appointments, or being unable to set up adequate childcare.

You don’t have to do it alone

Many women have stood in your shoes before, facing the stress and overwhelm of a partially paid or unpaid maternity leave. And many of them have found ways to navigate the uncertainty. So resolve to start your financial plan now, set your financial goal, and get creative!

Explore supplemental programs, cutting unnecessary expenses, side hustles, money-making apps, HSA’s, and short term disability insurance. Advocate for yourself and negotiate for paid leave, even if your company doesn’t have a maternity leave policy in place.

And remember that you don’t have to figure it all out alone.

At She Might, we believe that new moms should never be burdened with the stress of finances during maternity leave. We believe a quality leave is one that gives you the space and time to focus on rest, recovery, and bonding with your baby before you return to work. And we want to help make your dream maternity leave a reality.