How to manage your finances when having a baby
August 21, 2017
Having a child is exciting, but adjusting to the change in income and new expenses can be stressful.
In this article, we share some of our top tips for managing your finances when having a baby.
Pay off debts before baby arrives
If possible, you should try to pay off your credit cards and other debts before the baby arrives.
After all, the interest you’ll be copping could be used for other, more important expenses.
Paying off credit cards will reduce some of the financial pressure you’ll be under if you or your partner take time off work to care for your child.
Budget for the future
Having a solid budget in place will help you remain in control financially when your baby arrives.
Be sure to budget for costs during the pregnancy such as medical bills, scans and maternity clothing, and those that come after, including nappies, baby clothes, equipment, baby food, medications, formula (if applicable), bottles, and child care fees if you are returning to work.
It’s also a good idea to factor in a buffer for any unforeseeable costs that may arise.
Investigate your entitlements
You may be eligible for Parental Leave Pay, Family Tax Benefit or Dad and Partner Pay as a new parent, as well as the Child Care Benefit or Rebate, Parenting Payment, Rental Assistance or a Health Care Card, so check with the Department of Human Services.
The Australian Securities and Investments Commission also has a great online tool for calculating your parental leave, available here.
Recycle and reuse
When it comes to buying baby equipment, you may be able to save yourself some cash by buying quality second-hand goods.
Shop online or at second-hand shops and garage sales to find a bargain. Family and friends may also be able to lend you goods or give you pre-loved hand-me-downs.
Learn to live on less
If one parent is no longer working, you’ll likely have to learn to live on a smaller income. That means reviewing your expenses and deciding where you can save money.
You may have to sacrifice things like your gym memberships, a new TV purchase or meals out, but remember, you’ll have your little bundle of joy to keep you busy!
We are here to help
If you are about to become a parent, congratulations! We’d love to help you get your finances in control so that you can enjoy the journey ahead.
LDB’s financial planners can assist with everything from creating a budget to providing advice about saving for a rainy day.
To find out more, please call (03) 9875 2900 or send us details via the contact form below.