Budgeting for a new baby
The brilliant thing about babies is that you usually have nine months to implement a plan, even if the pregnancy is a surprise.
Some of the most important things you need to plan for, apart from the obvious fully-equipped and decorated nursery, are your budget, maternity/paternity leave entitlements and determining if any government entitlements are available to you.
UNDERSTAND YOUR SPENDING
First you need to know your current pre-pregnancy spending. There are a huge number of apps and websites to help track your spending. ASIC has developed a handy app called TrackMySpend that can be downloaded from the App Store or Google Play Store.
Once you understand how much of your disposable household income you spend, you can begin making adjustments to account for pregnancy expenses.
This exercise can also be extremely informative and allow you to forecast your post baby expenses – in turn reducing the stress of unexpected costs once your baby is born.
UNDERSTAND YOUR ENTITLEMENTS
Understanding your eligibility for Government assistance is also very beneficial, as it can give you peace of mind when deciding who is taking time off and for how long.
The Federal Government offers eligible parents up to 18 weeks Parental Leave Pay*. For more information, you can access a Paid Parental Leave Comparison Estimator on the Centrelink website: www.servicesaustralia.gov.au
If and when you return to work, the Centrelink website also has information about government assistance with the cost of childcare, and your eligibility for that assistance.
Starting a family or expanding your family will be a life changing experience. Planning ahead with the aid of a Financial Adviser can give you the peace of mind that you are well-informed and financially prepared to welcome the newest member of your family.
Contact us today and we can point you in the right direction.