Yellow Brick Road: Home
YBR

What are the costs of having a baby?

In this article:

By Lyndsey Douglas

Thinking of starting a family? Here are just a few of the costs you'll need to keep in mind as you move forward with having a baby!

At what age do you want to start a family? According to Australian Bureau of Statistics data, the average age of new mothers here was 30.6 years, back in 2009. If you're married, it goes up to 31 years, while for those that weren't married it drops down to about 27 years old.

Deciding to start a family is huge for so many reasons, particularly when it comes to financial planning. You might have the love, but have you got the budgeting skills in place to keep your family going when you decide to have a baby?

What sort of time off work will you need?

Whether you're going to be pregnant or your partner is, you need to work out what kind of work cover is going to be but in place. Your leave entitlements, how much paternity or maternity leave will be required and what sort of income protection is in place all need to be organised.

The right insurance can be very useful when it comes to ensuring ongoing income, covering you when you unexpectedly find yourself unable to work.

Factor in the doctor's fees

From the very beginning of a pregnancy, there are going to be ongoing medical costs to be managed, to varying degrees if you're with a public or private hospital. Meetings with an obstetrician can put you out several hundred dollars for each visit, so keep these in mind.

Ultrasounds, blood screenings, standard checkups and antenatal classes could all be on the agenda too. We're sure you've planned out a calendar with all of your doctors' visits and have insurance covering a lot of costs, but it pays to keep everything lined up and ready to be paid for just in case.

Work out your future plans

Obviously, you won't both stay at home and look after your baby forever. At some point, you or your partner is going to have to return to work. This means you'll need to have a big discussion about your finances with your partner well in advance and determine who's going to go back to work.

If it's both of you, then significant carer costs are going to be incurred. Make sure you have this plan set in stone before you get too far down the line!

Have you got the room?

Renovations to add another room aren't just good for space.

Have you already taken out a home loan for a family house, or is this a little further down the road? Whether you've bought property or will still be renting, make sure you have enough room. Renovations to add another room aren't just good for space - they can add significant value to your property as well.

Then there's the cot, the painting, the furniture, and any safety measures you need as the child grows up (a little too quickly for your liking). Is the home you're in going to cater to your young family over the next few years, or will renovations and another move be necessary?

Can you still save?

One of the central concepts of creating wealth and building a financial future is being able to save. It could be for that first home, another type of investment, or even simply a holiday. Look at your budget for ongoing life with your baby in it - do you still have room to save?

Hump day inspiration:

Having the freedom to do whatever you want. pic.twitter.com/x5JsaqTGMH

— Yellow Brick Road (@YBRWealth) February 16, 2016

Putting a plan together well in advance is going to be key. When you want help picking apart any big financial decision, from starting a family to finishing an investment, make sure to get in touch with the team at Yellow Brick Road. We specialise in making those difficult steps in life seem straightforward and getting you on the path to wealth management. Let's see what we can do for you!

Featured articles

Steps towards equality for women mortgage brokers This year’s International women’s day theme of ‘Each for Equal’ focuses on what each of us could do at the individual level to make a difference. In line with this thought, we spoke with women Branch heads at YBR to understand what made them thrive professionally.

6 Money Mistakes You Don't Want to Make Spend big in the lead up to Christmas then pay for it in the New Year. It’s an all too common habit that many of us fall into. See these solutions.

Pay Off Debt in The Lead Up to Xmas Take aim at debt now before the expenses of Xmas start mounting up. Here’s how to clean up your finances, including dealing with your credit card.

Principal and interest vs interest-only? How to choose between an interest-only and standard home loan? See if you fit into any of these common scenarios.

Should You Invest in A Holiday Home? Holiday homes – is investing in a beach shack or bush retreat a good move?

View all articles