Money and starting a family

15 February 2018

I think the first consideration is having an understanding of your income and expenses and knowing how you will be able to cope on a single or reduced income.  This will help in making decisions around how much maternity or paternity leave you can take.  It would also be prudent for you to find out what your leave entitlements are if you are an employee and whether you are eligible for family support payments such as maternity / paternity payments or Family tax benefits.

 

The second consideration would be regarding the purchase of big ticket items such as cots, change tables, prams, car seats etc, which add up quickly.  Saving for these items ahead of time can minimise the financial impact of setting up your home.  You would also need to consider any larger expenses such as upsizing the car or house.  In these instances you should consult a mortgage broker to reviewing your existing lending and ability to borrow additional funds.  Do this ahead of time as the lenders are likely to assess your income and application differently if you are about to have time out of the workforce.

 

Lastly you need to consider family protection.  Now that you are responsible for someone other than yourself and have a “financial dependant”.  Life and disability insurance is important to ensure your partner and child are financially secure in the event you are unable to work or pass away.  For Mum’s-to-be, this also best done ahead of time as insurers will not insure you during your last trimester.  So seek professional advice with your financial planner early.

You may also like

Investment & Economic Snapshot April 2024

Investment & Economic Snapshot April 2024

As of April 2024 Highlights Risk aversion and moderating expectations for interest rate cuts pressure bond and equity markets. Australian and US inflation data releases came in higher than expected as services inflation remains elevated. Geopolitical tensions...

read more
September 2022 Newsletter

September 2022 Newsletter

Your Financial Guide Newsletter September 2022 This edition, we will introduce you to a new team member! We talk about the superannuation contribution rules that changed in July. We also talk about inflation, and the importance of being vigilant with regards to cyber...

read more
March 2022 Newsletter

March 2022 Newsletter

Your Financial Guide Newsletter March 2022 I'm sure when 2022 started, we were all hoping for a positive and less dramatic year considering the last 2 years. Sadly it's not the case, and like the rest of the world we are deeply saddened with he current plight of the...

read more