How to manage your finances when having a baby

Wealth Management

August 21, 2017

How to manage your finances when having a baby

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!