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:
— 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!