A new baby means surprise, anticipation, awe —and some major financial changes.
Exciting times ahead for you
Ask any parent, And they’ll agree— the birth of their first child was a life-changer.
First you’ve got to get the nursery sorted: crib, furniture, painting and decor. When bub arrives, there are day-to-day costs like nappies and clothes. And then there’s the potential cost of a different car or larger home.
Many parents say they’ll just ‘make it work’ financially. But making it up as you go along isn’t ideal. To manage these changes, and maintain some work—life balance, you’ll need to set new goals.
Weighing up the issues
There’s a lot to be explored well before the birth date. For instance, have you considered whether you’re eligible for government benefits? Should you renegotiate either parent’s employment package to include childcare or a new car? Does your company super plan include the right insurance? Is there another type of insurance which fits your new family’s needs?
Eligibility and payment levels vary considerably. You’ll want to assess the impact of any parental leave payments on the family income, and how long that situation will continue.
New baby = new budget
With or without paid parental leave, many mothers plan to return to work.
If both parents are back at work, the family needs to budget for the cost of childcare. This expense can be bigger than expected. Regardless of school choice, it’s a good idea to also start putting aside something for their future education. A realistic budget, one which helps you plan for your new needs and responsibilities, is an important first step.
Getting help from an expert
New parents have plenty of support and expertise to draw on if they feel they need to. Doctors, health centre Staff, parents, family members, and even online parents’ groups can lend a hand.
Just like you draw on the parenting expertise of these people, you can draw on our financial expertise to assess your financial needs and help you plain for the future of your new family.
We can walk through the issues with you, and work together with your accountant if tax questions come up. This will ensure you can provide your family with all the essentials, from recurring monthly expenses to future education costs and income protection. This will give you some peace of mind, and leave you free to prepare for the happy arrival.
Planet Wealth Pty Ltd (ACN 137 467 362) as Trustee of the Planet Insurance and Financial Planning Unit Trust ABN 15 757 194 605 is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 Australian Financial Services Licence 232706 and Australian Credit Licence 232706.