How Much Money Should You Have Saved Before You Have A Baby

Having a baby

Budgeting for the costs of a infant

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Becoming a parent is an exciting and life-irresolute step. Exist well-prepared for the costs and budgeting for them.

Toll of having a infant

Having a infant costs money. It'southward possible to program and save for nearly of these costs, but some tin be unexpected. The earlier you outset, the amend.

Pregnancy and nascence costs

During your pregnancy and for the birth itself, costs may include:

doctor's and hospital bills
ultrasounds and other medical tests
birthing (antenatal) classes
maternity clothes
private wellness insurance

If you go public

You lot may decide to use the public health system during your pregnancy. Medicare covers:

routine ultrasounds
blood tests
care from midwives and obstetricians
shared care from majority-billing doctors

You tin can also register to go a college Medicare benefit for out-of-hospital costs. See Medicare Safety Nets on the Services Commonwealth of australia website.

If you give nativity in a public hospital as a public patient, Medicare covers:

your hospital stay
care from midwives and/or obstetricians
some medical expenses, such as routine ultrasounds

If you become private

You can cull individual insurance to assistance pay for costs during pregnancy and during the birth. There'due south usually a waiting period of up to 12 months before you'll be eligible for cover.

You tin mostly cull your obstetrician. You may get a choice of a private hospital or a private room in a public infirmary.

However, there are out-of-pocket costs, for example, visits to your obstetrician. Every policy is different, so talk to your insurance company or check your policy.

For more than data, run into the Democracy Ombudsman'due south pregnancy and healthcare fact sheet.

After your baby arrives

When your baby is born, you'll need:

babe wearing apparel and nappies
bottles and formula or a breast pump
a cot (including a mattress, sheets and blankets)
other equipment, such equally a modify table, pram and machine seat

The cost of these items adds up, merely there are ways to salve:

Find out what you actually need (and will use) by talking to other parents.
Buy secondhand or via online marketplaces.
Sell items equally your baby grows out of them.
Rent or borrow big-ticket items like prams or automobile seats.

The Raising Children website has helpful information virtually preparing for your infant.

Childcare costs

When it'due south fourth dimension to render to work or report, or if you demand a break, you tin can go kid care. Start planning for this well in advance. Places for babies under 12 months can be express and so y'all may have to go on a waiting list.

You'll also need to counterbalance up the cost of child care against how much you lot're earning.

The blazon of kid care that works for you lot will depend on how much you need and your budget. For example, you may have family or friends who can help, or you may take to pay for full-day child care or a nanny.

The Raising Children website has information on childcare options and government assistance for child intendance.

Changes to your income

Decisions about if or when you and/or your partner return to work can affect your income, childcare costs, and fifty-fifty your super.

Getting paid leave

Find out what your employer offers as paid maternity and paternity leave. Also check if you tin apply your annual or long-service leave.

The Fair Piece of work Ombudsman has information on maternity and parental leave.

Getting authorities benefits

Depending on your income and assets, you could be eligible for regime benefits:

Parental Leave Pay
Family Taxation Benefit
Dad and Partner Pay

Y'all may also exist eligible for 1 or more of the following:

Parenting Payment
Rent Assistance
a Wellness Care Card

See Services Australia for data nigh payments for your family unit or phone 13 61 50.

Exercise a baby budget

One time yous've got an idea of baby costs and what your income will be, you can do a upkeep.

Preparing for the future

Saving – Retrieve about regularly putting away some money for education and time to come expenses for raising your child. Come across Saving for ways to do this.

Super – If you or your partner change working arrangements, see how it affects your super. Bank check:

whether y'all tin contribute super to each other'southward funds
what insurance benefits you have through your super fund

Wills – Update your will to include any guardian of your child.

Have a money conversation with your partner

Talk with your partner about the best way to manage your household and fiscal state of affairs. Talk through:

managing your everyday spending and saving
looking at financial goals and priorities
putting off buying large items
paying off some debt before the babe arrives

Couple assembling a baby's crib.

Janet budgets for her baby

Janet and her partner are expecting their starting time kid. After talking about how to organise their lives in one case the baby arrives, they've agreed that Janet will accept nine months off work after the birth. After that, she'll return to work three days a week.

Janet has 12 weeks of maternity exit. She is entitled to paid parental exit for eighteen weeks from Services Australia, and she's too taking some annual get out. Their household income will be lower, alongside the new expense of kid care after Janet returns to piece of work.

Janet used the upkeep planner to plan how they'll manage their money when the babe arrives.

The couple decides to sell their second car and to pay off their credit card earlier the baby arrives, to reduce some of their regular outgoings.

Source: https://moneysmart.gov.au/having-a-baby

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