Looking at starting a family? Bringing a baby into the world is an exciting time, especially if your going to be first time parents. But with parenthood becomes financial responsibilities and obligations that were not present before your baby arrived into the world. The thought of starting a family can also be full of the unknown, especially when it comes to money. If you’re ready to start a family, here are a few easy tips on how to get your finances in order.
Figure out health insurance first. It’s a good idea to do this before you try to conceive a child for a few different reasons. You’ll want to make sure that your health coverage includes pregnancy and obstetric services. By having these services included in your health cover, you will more than likely have the choice of doctors and hospitals that you want to work with to help take care of your pregnancy and your baby. In addition, many health insurance policies have a 12 month waiting period on providing pregnancy and obstetric services so planning ahead it vital.
When the baby arrives (or even before the baby arrives), you and possibly your spouse will need time off of work to take care of the new addition. Due to this, it’s important to check what leave you are entitled to at work. You can also check Australia’s Parental Leave Laws to ensure your employer is abiding by regulations.
This is also a good time to check and see if you are eligible for any government payments. Things such as the parental leave pay, or the family tax benefit can play into your financial well being and decisions once the baby arrives.
When it comes to money, soon to be parents also worry about the cost of childcare. Due to this, it’s important to determine what you can afford when you go back to work. Not only do you have to think about the cost, but most child care centres also have long waiting lists so it’s best to plan ahead and get on a list if you’re planning on having a child in the near future.
Budgeting is going to be a big part of the financial picture for you and your new family. It may take you a couple of months to really get into the swing of things once the baby comes because costs can be variable, but after figuring it all out, it’s more important than ever to stick to a budget. One of you may not be going back to work for awhile, or may be working reduced hours, so a new budget is essential for the situation.
Now that you know a few financial tips for planning to become new parents, what happens after the baby arrives? You’ll need to adjust your health insurance cover, write a Will so that the baby is taken care of financially and has a guardian in the event of the unexpected; and open up a bank account for your child and start making small contributions.
Another added tip is that planning to have a family is a big life changer financially and otherwise. Now is a great time to speak to a certified financial planner, from Ricarmo, who can help you plan for your new addition and help you adjust your budgeting as necessary.