Yahoo Lifestyle Get financially fit for a new baby
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You want to enjoy the newborn phase, not stress about money, says founder and director of MyBudget.com.au, Tammy May.
“The greatest expense of a new baby usually comes from the loss of income as one parent stops work,” says Tammy. “Often people are literally halving the money they were getting prior to having the baby, even when they take into consideration eligibility for government payments, and it can be quite a shock to the budget, which is why it’s best to be prepared.”
Here’s what Tammy suggests:
Create a revised household budget
It should take into account your reduced income and extra expenses, contingency costs like doctor visits, and extra utility costs such as power, since you’ll be home much more than before.
Set up a separate account
Have parenting payments and part of your partner’s income paid into an account just for baby expenses. “Investigate what your expenses might be and add a buffer so you’ll always have the money there,” Tammy advises.
Borrow baby gear
Borrow from friends and family, especially big-ticket items like bassinettes, cots and prams. “As long as they meet Australian safety standards, they’re normally in good condition because babies aren’t babies for long.”
Do your research
From eBay deals to sales and discount vouchers, the more you shop around, the more you’ll save.
Less is more
“You could end up with every toy out there, but is your baby going to outgrow them before he can use them? It’s about buying what you need, not what you think bub will want.”
For a good budget planner and a range of other finance calculators, see MoneySmart.gov.au.
Learn more about eligible government payments at HumanServices.gov.au.
Related: Lower your family grocery bill
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