The road to robust financial health, even when you’re juggling the demands of family life

Motherhood comes with countless responsibilities, so it’s no surprise that long-term financial planning often gets pushed to the bottom of the list. Managing your finances is essential for everyone, but as a mum, there are unique challenges that might mean your money needs extra attention.

From unexpected expenses to future-proofing your family’s financial security, a well-managed plan can make a world of difference. Here’s how to get started on the road to robust financial health, even when you’re juggling the demands of family life.

Build a safety net for life’s emergencies
Emergencies often catch us off guard, and as a parent, you’re likely no stranger to life’s unpredictable moments. While an emergency fund won’t stop sick days, last-minute school costs or a broken washing machine, it offers a vital cushion for more significant financial surprises.

Aim to put aside at least six months’ worth of essential living expenses into an easy-access savings account. This should be your safety net for unexpected costs, like a boiler breakdown or urgent car repairs. Having this buffer can help you avoid falling into debt or drawing from your savings set aside for long-term goals.

Protect your income and secure your lifestyle
If your family relies on your income to cover bills, school fees, after-school activities or childcare, an income protection policy could be a game changer. This type of insurance replaces a portion of your salary if you become too ill to work long-term, ensuring your loved ones maintain their standard of living.

Similarly, life insurance could provide a crucial financial safety net if the worst should happen to you. By paying out either a lump sum or regular income, it can help cover major costs such as the mortgage, reducing financial strain on your family during an already difficult time.

Don’t overlook your pension
If you’ve stepped away from the workplace to focus on raising your children, it’s vital not to neglect pension contributions. Many mums prioritise their children’s futures, but failing to maintain your retirement savings now could lead to tough financial challenges later.

The good news is that it’s never too late to bolster your pension. Begin by ensuring your State Pension is on track. If you’ve paid National Insurance (NI) for 35 years, you’ll qualify for the full State Pension, currently £11,502.40 annually (2024/25). Even if you’re not working, you receive NI credits automatically when you claim Child Benefit, and your child is under 12. If you’ve opted out of receiving Child Benefit payments, you may still be eligible for these credits – just be sure to check.

Make the most of tax-efficient pension contributions
Boosting your workplace or private pension is another important step. Pensions are an excellent savings vehicle because of the tax relief they offer. For instance, a £100 contribution actually costs just £80 for basic rate taxpayers and £60 for higher rate taxpayers. Even mums who aren’t working can still contribute up to £2,880 annually and receive 20% tax relief, increasing your contribution to £3,600.

If you’ve recently inherited money or received a cash gift, consider saving some of it into a pension. Over the years, this could significantly boost your retirement nest egg.

Invest in your children’s future
If your finances allow, putting money aside for your children can give them a strong foundation as they enter adulthood. Planning now could make all the difference, whether it’s to help with university fees, a first home deposit or even providing for future unexpected needs.

Consider investing in the stock market to give their money growth potential. Although investing might feel risky, particularly if you’re a naturally cautious mum, the stock market has historically outperformed cash savings over the long term. A Junior Individual Savings Account (JISA) is another option – it’s tax efficient, and funds can’t be accessed until your child turns 18.

Seek professional financial advice
Planning your finances can be daunting, especially when you’re already stretched thin juggling daily demands. That’s why it makes sense to delegate this task to a professional. Enlisting a professional financial adviser will relieve some pressure and give you confidence that you’re making sound financial decisions.

By strategically managing your finances, you’ll lay the groundwork for a secure future for yourself and your family. Whether it’s through saving, investing or protecting your income, every little effort contributes to a stronger financial outlook.

THIS ARTICLE DOES NOT CONSTITUTE TAX, LEGAL OR FINANCIAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.

A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM APRIL 2028 UNLESS THE PLAN HAS A PROTECTED PENSION AGE).

THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.

YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS.

THE VALUE OF YOUR INVESTMENTS CAN GO DOWN AS WELL AS UP, AND YOU MAY GET BACK LESS THAN YOU INVESTED.

THE TAX TREATMENT IS DEPENDENT ON INDIVIDUAL CIRCUMSTANCES AND MAY BE SUBJECT TO CHANGE IN FUTURE.

THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE TAX ADVICE AND WILL WRITING.