at Knowledgebank IQ | 04 April 2014 |

Having Kids

The arrival of a new baby is a wonderful cause for celebration, and with so many changes occurring in new parents’ lives, it’s easy to overlook an issue like financial planning.

However, overlooking the financial implications of starting a family can lead to big problems down the road.

If you are about to have a baby or have recently had one, it’s likely that you’ve already thought about some of the obvious expenses, like food, clothing, and nappies. But what about the hidden costs of raising a child?
 

Now is the time to consider:

  • Budgeting the costs of having a child

  • Will you be able to support your desired lifestyle on one income and for how long?

  • Will I be eligible for any government assistance such as the baby bonus, paid parental leave, family tax benefits, child care benefits and child care rebates?
     

How Can a Financial Planner Help?

Consulting with a financial planner can help your answer and prepare for the following:

  • When can we afford kids? And how many kids given our goals?

  • What's the best way to save for my kids?

  • How do we improve our budget?

  • Can we afford to upsize our house?

  • Will we get Family Tax Benefits from Centrelink?

  • Is the baby bonus or paid parental leave best for me? (Impacts on other Centrelink benefits including Family Tax Benefit B need to be considered).

  • How can I optimise paid parental leave and the tax I pay?

  • What is Dad and Partner pay?

  • Are there different rules for Centrelink benefits if I am adopting?

  • When do I need to go back to work to meet my financial commitments?

  • How much do I need to earn?

  • What are the childcare options and is there any government help?

  • Is salary sacrificing pre-tax salary to pay for employer provided care versus receiving Government childcare benefits for approved childcare centres better for me financially?

  • What does starting a family now mean for my long term retirement?

  • How can I optimise superannuation opportunities while on maternity leave?

  • Can we afford private schooling?

  • What happens if I cannot work - is there protection for that?

  • What effect does going on maternity leave have on my income protection insurance?

  • What insurance changes do I need to make to ensure my family is protected?

  • Do we need a Will

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