Having a child
Important information - please keep in mind that the value of investments can go down as well as up, so you may get back less than you invest. Tax treatment depends on individual circumstances and all tax rules may change in the future. Withdrawals from a Junior ISA will not be possible until the child reaches age 18. You can't normally access money in a pension until age 55 (57 from 2028). This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity's advisers or an authorised financial adviser of your choice.
Having a child
Inevitably, becoming a mother will impact on a woman’s career, which is partly due to parenting responsibilities. After the birth of children, some mothers may opt for part-time roles, or roles with flexible working hours which offers work-life balance, but it may come with a consequence - lower wages.
However, it’s not always possible to balance work and childcare. Fawcett Society, a UK based equal rights charity conducted a poll in collaboration with Totaljobs and found that one in ten working mothers quit their jobs and two fifths or working mothers have turned down a promotion due to childcare pressures.1
It’s important to make informed and achievable choices about your career and family life and one way to do this is to ensure a good work life balance. To achieve this, you may want to ask your employer if you can switch to part-time working hours or request flexible working hours. You may also be able to go freelance. It’s also worth researching what childcare arrangement will accommodate your working hours.
Sources:
1.
Paths to Parenthood: Uplifting Mothers at Work Nov 2023
Take control
Taking care of your finances is especially important when you have a child. Here are some tips to consider:
- Don’t forget your pension. Ensure you contribute a regular sum to your workplace pension if you have one. You can also consider opening a Self-Invested Personal Pension (SIPP) as it may give you a different range of investments to choose from.
- You can open a Junior ISA to give your child a financial head-start for when they turn 18.
- Don’t forget to have a rainy-day fund. This is around three to six months’ worth of your monthly salary. It’s great for any unexpected emergencies.
- It’s important to enjoy life too. You can also create a dedicated ‘fun pot’ for family holidays or any hobbies you enjoy.
- If you've got any money left over, why not get it working harder for you? A stocks and shares ISA can help you save for the long term. But you can also access your money if you absolutely need to. Find out more about a Stocks and Shares ISA.
- And let's not forget, kids grow up... fast. It's never too early to plan for their future. Here's a useful section about planning for your child's potential university education.
What you could do next
Start saving for your child’s future
Save money for your child, free from income tax or capital gains tax on any returns.
Start a tax efficient savings account
Invest in a Stocks and Shares ISA and pay no income tax or capital gains tax on your returns.
Start looking after future you, today
Take control of your retirement savings and get your money working harder with the Fidelity SIPP.
