Expanding your family is an exciting time in your life, and there is a lot to consider along the way. From deciding on baby names to picking out nursery furniture, expectant parents have a fair bit to think about. There is no doubt that as well as being one of life’s greatest joys, having a baby is one of the most financially significant decision you will ever make. Before you take the plunge into parenthood, here is a go-to guide to make sure your finances are prepared!
If you have the ability, putting a savings plan in place ahead of time can help with some of the significant upfront costs of expanding your family. By taking the time to make a list of everything you will need, you can begin to create a plan to work towards this savings goal.
Read reviews, look at different stockists, and explore your options when it comes to big ticket purchases such as cribs, car seats, and prams. You may even need to consider upsizing your vehicle to accommodate for the new addition.
Maternity and partner leave
New parents will often choose to take a period of time off work in the first weeks or months of the baby’s life. It is important to understand your options surrounding parental leave and entitlements, as there are a range of options to accommodate maternity leave, paternity and partner leave, and adoption leave. While the period of paid leave available may vary based on your workplace, you are entitled to 12 months of unpaid parental leave.
During this time, your household may need to adjust to a decreased income. It is important to take this into consideration in your plans and budgets, ideally saving some extra funds to help meet your financial commitments while living on a reduced income.
As well as planning for all the expenses that will come before your new family member arrives, it is wise to think ahead of the ongoing costs afterwards. Things such as childcare, an increased grocery bills, and doctors’ appointments can have a big impact on your budget. Balancing these new expenses with existing commitments such as rent or mortgage payments can be difficult but creating a budget can help keep you on track.
Be aware of benefits
There is a wide range of government programs that offer support to growing families, including support with childcare costs and living expenses. Make sure to do your research and find out what aid you may be eligible to receive.
Use our Savings Plan Calculator to help you plan ahead for your new arrival. Get your savings started today with our award-winning Express Saver Account, designed to help you save more so you can reach your goals faster.
This blog post is for general information purposes only and is not intended as financial or professional advice. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product or other professional advice. You should seek your own independent financial, legal and taxation advice before making any decision about any action in relation to the material in this article. Railways Credit Union Limited trading as MOVE Bank ABN 91 087 651 090. AFSL/ Australian Credit License number 234 536 | ABN 91 087 651