A is for attitude

Henry Ford said that if you think you can, you can actually. And if you think you can’t, you’re right. Just like a new gym program or a new job, a new budgeting goal can be fun if you want it to be. ‘Tightening the belt’ can be an interesting challenge rather than a tedious chore, so pump up that enthusiasm and watch that financial waistline shrink!

B is for breastfeeding

Where possible, breastfeeding can be a lovely way to bond with your bub. Apart from the health benefits that breast milk provides, it’s also convenient, pre-packaged, always on hand and, best of all, it’s free! Breastfeeding your baby for as long as possible will save you money on formula, bottles and accessories.

C is for credit cards
Australians owe around $41 billion on the plastic fantastic. Ouch! To make your credit use cost effective, choose a card that suits your repayment habits. For example, if you regularly pay your balance off each month, choose a card with a long interest-free period. However, if you always have a running balance, opt for a card with a low interest rate. Irrespective of your card type, manage your repayments to avoid overdrawn and late payment fees.

D is for debt

Buying our own home is often one of the biggest financial decisions we make and the size of our mortgages reflects that. Shopping around for a mortgage is worth doing – a one per cent difference in interest over a 25-year loan of $300,000 would cost an extra $60,000 over the term. The Canstar website is a great starting point when researching and comparing mortgages.

E is for eBay

There is a baby item sold on eBay every 20 seconds. Buying second-hand is deservedly popular and there’s always an enormous list of items available for sale, sometimes at a fraction of the full retail cost. Whether you’re setting up a nursery, needing maternity clothes or just looking for that one-off item, online sellers, along with newspaper ‘classified’ sections, can be a great way to find what you need without blowing the budget.

F is for Family Assistance benefits

There are a number of benefits potentially available – Family Tax Benefits A and B, childcare rebate, baby bonus etc – and there are also some tips and traps to be aware of. For example, the baby bonus must be claimed within 26 weeks of the birth, or you could miss out! Spend some time browsing the government’s Family Assistance website to make sure you’re optimising all your entitlements.

G is for gifts
Gifts can be one of the silent killers of budgets. The unexpected events and extra $20 spent here and there add up significantly. But by keeping a calendar to plan ahead you can make use of the many craft and farmer’s markets that are available. Alternatively, put your cooking skills to good use to produce some beautifully presented gourmet goodies. Some creative planning ahead of time can save serious money. If your kids seem to be invited to a birthday party almost every weekend, try picking up age-appropriate gifts when you see them on sale and keeping them in a 'present box' so when the invites arrive, you have presents on hand.

H is for home-cooked meals

Did we mention cooking skills? Australians waste around $5 billion worth of food each year – enough to feed the entire population of New Zealand! To avoid wastage, sit down once a week and write out a menu for the following week. Then write a shopping list and do one big trip to the store. Voila – instant efficiency. Taking your own lunch to work can save you up to $15 each day, or $1,200 per annum. And making some dinners that can be cooked in bulk and frozen means you can always have some quick and easy meals on hand.

I is for insurance

While it may not save you money day-to-day, making sure that you are fully covered in the event of illness, accident or death, not to mention home, contents and car cover, could save you an absolute packet in the event that something goes wrong. Ask yourself, can we afford NOT to have insurance?

J is for junkets

There are so many fun things to do with your baby that are free. Ask at your local family health centre about joining a mother’s group – they’re a great way to meet other parents and playmates for your bub. Also investigate your local playgroups, as well as the library, museum, art gallery and cultural centres and your local paper for other community activities.

K is for keeping track of your expenses
Money in, money out. Exactly where it goes is a mystery. Keeping a written track of day-to-day spending helps plug the financial holes in your budgeting. There’s a good budget template on the government’s MoneySmart website.. You could be surprised by how much you can save, simply by knowing what you spend your money on!

L is for lost superannuation and other unclaimed money

There is currently $9.7 billion – yes, billion – in lost superannuation lying in Australian funds. Could any of this be yours? An easy way to check is via the ‘Superseeker’ tool on the Australian Taxation Office (ATO). Also, the Australian Securities and Investments Commission (ASIC) currently has around $458 million of unclaimed money that it is holding in trust from lost bank and other accounts. If you feel you may have misplaced money at some point, contact ASIC on 1300 300 630.

M is for the Medicare safety net

The safety net is designed to help with your out-of-pocket medical expenses once you have reached a certain threshold (currently $1,198). However, while every Medicare card holder is automatically registered as an individual, you are not automatically registered as a family. By registering as a family your medical costs and threshold will be combined, resulting in a bigger refund sooner.

N is for nappies
There have been huge advances in both cloth and disposable nappies recently. Cloth nappies are no longer fiddly squares of white cotton – they are now self-fastening and often cheaper than disposables. If disposables are your thing, you can still save money.
GALLERY: Modern cloth nappies

O is for optional extras

The adage about kids being more interested in the wrapping paper than the gift is often true, so it’s worth being strategic about what toys you purchase, and when. Plan ahead and buy when the sales are on; also take advantage of fetes, garage sales and markets. If you have a local toy library, try it out. It’s an economical way to keep your kids entertained – and your cupboards uncluttered!

P is for paying bills on time

It’s easy in the bustle of living to lose track of when bills are due. But it’s handy to be aware of the companies that offer a discount for early payment or impose a penalty for late payment as it’s an easy way to save more than a few dollars.

Q is for questioning your bank statement details

Most of us receive our bank statements, give them a quick glance and file them away somewhere for several years until our next big spring clean. It’s worth reading them properly though, to ensure that the interest rate is correct, the fees are correct and that you are not being charged for purchases you didn’t make.

R is for reciprocal babysitting

Rather than shelling out $50 whenever you want some ‘couple time’, arrange with your neighbours, mother’s group, friends or family to take turns minding each other’s children. Apart from the cost efficiency, the added benefit is that your little ones are being looked after by people they know and care for.

S is for sales
A little forward planning can go a long financial way. While it’s nice to have some current fashion for your kids, the day-to-day basics of t-shirts, trousers, shorts and skirts are often heavily discounted at the end of season.

T is for tax refund

The ATO website has a great deductions checklist for individuals, to help you ensure you claim everything you can (don’t forget to claim the childcare rebate!). Also, ensure that wherever possible, deductions are made in the name of the highest income earner as this will maximise the amount that you get back. Example: a $100 donation made by someone on a 15 per cent tax rate will provide a $150 refund; the same donation made by someone on a 40 per cent tax rate will provide a $400 refund. If you have children at primary school, you may be able to claim up to 50% of your out-of-pocket expenses.

U is for utilities

It can pay to shop around for the best deal on your telephones, internet, gas and electricity. To compare prices in your area and work out which providers are best for your family, check out the iSelect website.

V is for versatility

You can save on cleaning products by making your own. Cath Armstrong, creator of Cheapskates.com.au, says: “A sparkling, clean house doesn’t have to cost the earth. Put some bicarb soda, white vinegar, washing soda and borax into your shopping trolley – you’ll save on cleaning costs.”

W is for will

Estate planning can provide peace of mind in the event of something awful happening, and can also save a great deal of tax if things are structured correctly. Your solicitor can advise you about this.

X is for extending yourself

If you’re having trouble making ends meet while on maternity leave, consider finding part-time work. It can provide a welcome break from parenting duties, give a boost to your professional development, and – luxury – you might even get a proper lunchbreak and have time to drink a hot cup of tea! Be aware however that any income you do earn will affect your entitlement to Family Assistance and Paid Parental Leave, so be sure to notify the Family Assistance office of any changes in your situation.

Y is for yummy baby food
Just as it’s cheaper to home-cook your own food, it’s cheaper and tastier to prepare food for your little ones at home too. Puréed fruit and vegies are easy to make in bulk and freeze into meal-size portions. If you’re in any doubt over how to prepare food for your baby, check the Protecting tiny tummies fact sheet on the Food Safety Information Council website.
GALLERY: Healthy family meals on a budget

Z is for Zzzzzzzs

Sleep deprivation can contribute to stress, illness and depression. It’s easier said than done with young children in the house, but looking after yourselves with a good diet, exercise, and plenty of sleep is the most effective way to keep you all out of the doctor’s waiting room. Besides, if you want to tackle your budgeting with a capital A for Attitude, you really do need the Zzzzzzzs to do it!

■ The author, Justine Davies is a financial planner and member of the Financial Planning Association. She is the author of How to afford a baby (ABC Books).

This information is general advice only and has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.

More on living on a budget:

• Best family budget tips
• Five ways to help you save once your bundle of joy arrives
• Your buying for baby checklist