Having adequate savings can set your new family up for financial success. Usually, this takes the form of an emergency fund, which financial experts suggest should consist of anywhere between three to six months of living expenses.
Aussies spend an average of $12,823 on their kids per year. Couples planning to have children aim to save more than $31,000 to ensure they have enough funds for all the initial expenses. An estimated $6,572 is spent on education and childcare every year. Kids receive an average of $21 pocket money a week.
How Much Is The Baby Bonus? If your child was born or adopted before 1 July 2013, the baby bonus is $5,000. If your child was born or adopted on or after 1 July 2013, or you became eligible for the baby bonus during this timeframe, the payment is either $5,000 or $3,000 depending on your situation.
Some studies show numbers ranging from $20,000 to $50,000 for the child's first year of life, depending on location and household income. Beyond the general items, like a stroller, crib, or car seat, here are some estimates of what you can expect to shell out in your baby's first year.
There's no magic number for how much money you need to have before having kids. But job stability and a healthy emergency fund are a good start. At some point in your 20s and 30s, you'll start to wonder if you want to have kids, and if so, when you should do it.
Middle-income, married-couple parents of a child born in 2015 may expect to spend $233,610 ($284,570 if projected inflation costs are factored in*) for food, shelter, and other necessities to raise a child through age 17.
In terms of saving for a child's future, it's never too early to start. You can build savings for that child long before they're even born — although with some saving or investment vehicles you might need to wait until the child is born.
Focus on your emergency savings
Every emergency fund should have three to six months of basic living expenses (housing, food, bills, etc.) put away for that rainy day.
The Australian Government provides several different payments to support families. If you are the parent or carer of a child, there are payments you might be able to apply for. Payments are available to help you with parental leave after having a baby, child care costs and other expenses such as rent.
Pregnant women often worry about financial challenges ahead. In fact, financial worries are an important and common cause of stress during pregnancy. Undoubtedly, the pregnancy, birth, postpartum care and raising a child could be expensive.
The figures - published today by the Australian Institute of Family Studies' - show the weekly costs of raising a child range from $140 for unemployed families and $170 for low-paid families.
Cost of going private (with health insurance): $3000-$5000
The costs for your delivery in a private hospital, according to HICA, could include: Accommodation: $700-850 daily (expect to stay 2-5 days) Delivery suite fee: $1,000 ($1,200 for caesarean)
Monthly, you could safely plan on spending between $250 (no child care) and $1500 (with child care) a month on your baby.
Get prepared ahead of time
Sort your job and finance - start thinking about your plans for parental leave, as well what you might be entitled to in terms of child benefit and maternity/paternity leave pay. There is a good overview of financial support for parents on the Child Poverty Action Group page.
The cost of raising a child is going up
A married, middle-income couple with a child born in 2015 will spend an estimated $310,605 from birth until the child turns 17, according to Brookings.
Some of the biggest costs for new parents include healthcare (including birth), diapers, formula, childcare, baby gear, clothes, food, and toys. In fact, you can anticipate spending between $9,300 and $23,380 per year per child.
One of the most common types of percentage-based budgets is the 50/30/20 rule. The idea is to divide your income into three categories, spending 50% on needs, 30% on wants, and 20% on savings.