Bankrolling a baby a daunting task

Article Category: Demographics

By Anthony Keane, From: The Courier-Mail, 15 March 2010

Bankrolling a baby a daunting task

By Anthony Keane, From: The Courier-Mail, March 15, 2010

BANKROLLING a baby is one of the most daunting financial tasks many people will face, but buying prams, cots and cradles are just a tiny part of the overall cost.

The biggest hit on a new family's budget is the loss of one partner's income for weeks, months or years.

Director of MyBudget Tammy May says loss of income causes the most stress, so it pays to have a plan in place.

"The first thing to work out is how long you think you will take off work, whether you will get paid maternity leave, and what income you expect after the baby is born," she says.

"Nobody is 100 per cent ready to have a baby. It's really important to put a budget together, and don't fall into the trap of using credit cards and getting further into debt."

May says expectant parents should aim to pay for one-off items such as prams and cots well before the baby arrives, while both are still working.

"If you can, borrow it from somebody else or offer to buy it second-hand. Some people want new stuff, but really, babies are in baskets for only a few months, and the same goes with baby capsules," she says.

Many parents can access financial benefits as long as they do not exceed income thresholds set by the Federal Government.