Women - Expecting a Baby

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Women - Expecting a Baby

Be financially prepared for your new arrival

When you’re having a baby it’s normal to focus on the practical aspects of preparing for the arrival of a newborn. In fact, there are so many things to consider that people often overlook the financial considerations. By taking the time to consider your finances ahead of time, you’ll be able to avoid financial pressures and really enjoy the special time with your new family member.

1. Expenses associated with having a child

The expression ‘the best things in life are free’ doesn’t ring true where babies are concerned, because even though starting a family is likely to be one of the best things you experience in your life, it certainly isn’t free.

2. Changes to income levels

If you, or your partner, are planning to take time off work after the birth of your baby, you need to adjust to changes in the level of household income. To prepare, you should gradually adjust your budget to live off one salary.

Some employers offer paid maternity or parental leave, so it’s worthwhile taking a look at your employment contract or talking to a human resources representative at your place of work to determine what paid leave you may be entitled to.

The length of time that you need to live off one income depends on how long you plan to take off work. For example, will you return in 3, 6 or 12 months in a full time or part time capacity?

3. Financial assistance

With extra expenses on the way and a drop in income expected, it’s comforting to know that you may be entitled to various forms of financial assistance through the government. There are a number of different methods of assistance available to support parents with costs of raising a child, such as:

4. Consider getting your life insured

When you become a parent you become responsible for the welfare of your children. This is why it’s sensible to think about how your partner and young child would cope if you were to pass away suddenly. It’s not a very pleasant thing to think about, but the sad fact is it does happen.

If you have life insurance, this money could be used to pay for a nanny so your partner could continue working, or it could be put away to fund your child’s future education expenses.

5. Consider making a will

Once you start a family, a will may be a good idea to make sure that your children are looked after in accordance with your wishes if you pass away unexpectedly. You should also review your death benefit nominations on any superannuation accounts and

Speak to us for more information

If you have any questions, please call SMART Financial Planning for Life on 03 5911 7000.

Important information
This document has been prepared by Count Financial Limited ABN 19 001 974 625, AFSL 227232, (Count) a wholly-owned, non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124. ‘Count’ and Count Wealth Accountants® are trading names of Count. Count advisers are authorised representatives of Count. Count is a Professional Partner of the Financial Planning Association of Australia Limited. Information in this document is based on current regulatory requirements and laws, as at 26 June 2017, which may be subject to change. While care has been taken in the preparation of this document, no liability is accepted by Count, its related entities, agents and employees for any loss arising from reliance on this document. This document contains general advice. It does not take account of your individual objectives, financial situation or needs. You should consider talking to a financial adviser before making a financial decision. Taxation considerations are general and based on present taxation laws, rulings and their interpretation and may be subject to change. You should seek professional tax advice before making any decision based on this information. Should you wish to opt out of receiving direct marketing material from your adviser, please notify your adviser by email, phone or in writing.