A money guide for expecting parents

If you’re planning on starting - or adding to - your family, congratulations.

We’ve put together a guide to help you navigate this big life event, so you know what to expect when you’re expecting. 

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Step 1: Prepare for time off work

Taking time off to care for a baby may mean your income is reduced, but it’s likely you’ll be able to get some financial assistance. See what you could be eligible for to help you prepare for this big life change. 

The government provides the eligible parent with pay at the National Minimum Wage for a maximum of 18 week if you meet requirements including an income test and a work test. Find out what government support you may be eligible for including:

• An income support payment, such as the Parenting Payment
• A concession or health care card to lower the costs of healthcare and medication
• Help with the cost of early childhood education and care
• Help to lower the cost of living
• Assistance with the cost of rent or access to more affordable housing.

Your employer may offer paid parental leave to eligible employees for a certain period of time, so review your employer’s paid and unpaid parental leave policies.

Some key points:

• You can usually take up to 12 months unpaid parental leave if you’ve completed 12 months of service 
• If you’re eligible for paid leave, you can usually get this for a period of time and then take unpaid leave after that and may be able to get government assistance. 

If you have a partner, find out what their employer provides along with any government assistance available to them. 

If you have private health insurance, review what expenses will be covered by your health insurance – keep in mind that most pregnancy cover has a waiting period of 12 months. Consider what insurance you want before and after the baby arrives. 

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Step 2: Plan for financial changes ahead

Caring for children can mean increased living costs, so it helps to financially prepare for these changes. 

It’s likely you’ll need to update your budget or develop a new one to help you plan. Find a budgeting tool that works for you – try the one on ASIC’s MoneySmart to get started. Update your budget for your estimated increased living costs and/or reduced income. Don't forget to include:

• Birth costs – a big influence on costs is whether you have your baby in the public hospital system or choose to go private
• Other medical expenses like doctor and hospital bills, ultrasounds and/or other family planning expenses, medical tests and birthing/parenting classes.

And remember to add up what your ongoing costs will be (such as baby clothes, nappies, and formula) as well as your one-off upfront expenses (like a cot, pram and car seat). You might find it helps to separate these costs into two lists – one for ongoing costs and one for upfront costs – so you can prioritise your purchases before you welcome a baby.

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This guide contains general information to support you as you build your financial fitness. It doesn’t consider your personal circumstances and isn't financial advice. The information is true at the time of publishing.