Adding a new baby to the family is an exciting time. It's fantastic to be able to spend some time at home recovering after the birth and adjusting to adding this new member to the family. It can also be an expensive time, but by planning ahead you can minimise the financial impact.
Here are some tips to make the transition easier.
Review your budget
If you have a budget, this is a great time to work out exactly how much you are currently spending on discretionary items and determine how to cut back on some of these expenses. Even a small adjustment can have a big effect over the 9 months of your pregnancy and may mean that you can stay at home a little longer or have more of a buffer if unexpected expenses occur, such as additional medical expenses around the birth.
Check out your government and employer benefits
You may be eligible for benefits through your employer and through the government. Some of these benefits can be claimed through both sources, and other benefits can only be claimed through one or the other source, so it makes sense to work out exactly how much you will be eligible through either source. Many of these forms also have cut off dates, so it's a good idea to sit down early in your pregnancy to work out when you need to submit paperwork.
Sit down with a financial advisor
It may make sense to put certain expenses, such as your mortgage, on a payment holiday. This means that you don't need to find the money for payments each period. However, this has some long-term ramifications in terms of the interest you will accrue so it is a good idea to sit down with an advisor to discuss these options. If you plan to spend an extended period of time out of the workforce, it can also be a good idea to discuss ways of topping up your retirement savings and superannuation, as many women retire with a much lower superannuation balance due the time that they spent out of the workforce caring for children.
By spending some time researching your options and getting professional advice you can have a comfortable maternity leave with minimal stresses about money. If you are contemplating how you will afford you maternity leave, sit down with a financial advisor to discuss your options.
Share19 December 2016
I teach first grade. My students are already interested in how money works, but they often have funny ideas about how people get and use money. I like to work out fun ways to inject financial education into our days — sometimes we play shops and the kids get to buy play items like clothing from the dress up collections or plastic fruit. We also talk about ways to buy more expensive items such as cars or houses such as borrowing money from family or from the bank. This blog has some of my tips on fun and easy ways to teach kids of all ages about money.
