Oct 29, 2016  | Tags: budget, family planning, baby, financial planning, child care

There's only so much you can do to prepare for the intense joys and struggles of welcoming a child into the world. Exciting though the process may be, you have to seriously consider how having a baby will change your life.

One very important thing you can do to prepare is to consider how a baby can affect your finances. As a mother of three, believe me, your wallet will feel the pinch!

These seven steps will help you make your financial transition into parenthood a smooth one.

1. Make decisions about work

Whether you are single, married or in a relationship, you need to determine well in advance who will stay home and who will be at work. If you have other family members helping you look after your baby, you still need to have a plan that will allow you to coordinate schedules.

2. Start a budget planner

First, compare your current income and expenses. Next, add in all the extras that come with pregnancy and caring for a baby:

• Medical bills
• Nursery equipment
• Baby formula and food
• Nappies (you'll need lots!)

Consider making adjustments to your budget if you or your partner needs to take time off from work. Factor in the cost of child care if you plan to return to work. Don't forget that your utility bills will likely go up because of having people at home more often.

3. Give thought to a savings plan

What kind of education do you want your children to have? It's smart to start thinking about a schooling fees fund right now. What if more children come into the picture? You'll likely need a bigger home or need to make some updates, down the road. It's good to have some cash squirreled away in savings for just such an occasion.

4. Find out your leave entitlements and government benefits

Check with your employer about your leave entitlements so that you know what you have to work with. Contact the Department of Human Services to see if you're eligible for any benefits such as:

• Parental Leave Pay
• Family Tax Benefit
• Child Care Benefit

These resources could prove more helpful than you realise!

5. Consider child care options

Take advantage of the support of family and friends as often as you can. When you do need to return to work, however, it's quite likely that you'll need to look into some paid assistance. Compare a few child care or family day care centres in terms of price and environment. There can be long waiting lists, so don't put this off and leave it to chance. Although not cheap, nannies are another option. Check in with the Department of Human Services to see if you're eligible for assistance with in-home child care.

6. Review your estate plan

Do you have a will and is it up-to-date? In the unthinkable event something should happen to you and your partner, you need to have a legal guardian named to care for your child.

7. Make sure you're insured

Having the right insurance in place will protect your family financially if death or disablement befalls you or your partner. When your baby is still quite small, it's likely that either you or your partner will be out of work for some time. Make sure that your family's primary breadwinner has their income protected in the event something happens to them.
 
If you think you've got more than enough to juggle right now, just wait until your family's newest addition arrives! Let our team lighten your burden by helping you restructure your financial goals. We'll help you make time for what's really important in your life.

What Next?

At Calder Wealth Management, our specialist team of financial advisers will help you to avoid a financial burden. Contact us or call 08 8373 3333 to arrange a free, no obligation appointment.

Written by, Marisa Maiolo Life Insurance Specialist at Calder Wealth Management.