Heritage Bank to Parents and their 2014 Baby Budget Planning

Queensland, Australia, July 13, 2014 (Newswire.com) - If you’re reading this in between finding a new appreciation for mummy blogs and liking every organic nappy Facebook page for your chance to win one of three tie dyed sets then chances are there’s a baby in your life. If this is the case, you’ve come to the right spot. If you’ve got a baby on the way or if one has just arrived you’re not going to want to stress about finances on top of everything else. So, grab a cuppa and strap yourself in for a real treat – we’ve put together everything you need to consider to get you on track financially with your brand new family.

What you need to do to get on track financially

1. Budget for your new family
If you haven’t noticed, we’re all about budgeting on this blog – a budget is the best way to look at where you’re at and where you want to be. It’s a great tool to reach your goals and can be a starting point for conversations between you and your partner or family.

ASIC’s MoneySmart website suggests your baby budget should include three columns: Before Bub, With Bub and After Bub. We’ve done up a pretend budget for you to follow below. Get your very own printable baby budget planner at http://www.heritage.com.au/Blog/Money-Saving-Tips/Baby-budget-planner.aspx.

2. Find out your financial entitlements
By the time bub comes along, you should be well versed in the various entitlements available to people with babies. Whether you are purely relying on your employer’s maternity leave entitlements or you’re able to sign up for government incentives, it’s important to know what you should be receiving. Firstly, you will need to ask your employer about your paid leave entitlements. This includes maternity leave, annual leave, unpaid leave or long service leave.

Next, you should find out if you are entitled to a Baby Bonus (also known as a Maternity Payment from Centrelink) or the Government’s Parental Leave Pay.

For more information about Government entitlements visit the MoneySmart website.

3. If you need it, research and organise childcare
Although it’s probably not what you want to be thinking about already, child care will be one of your biggest expenses if you or your partner return to work. Your childcare options could include partners, relatives or friends, a childcare centre or family day care, workplace childcare or an in-home nanny. Depending on your situation you may be entitled to government help with some of these options. Whichever option you chose, ensure you include any costs associated with it in your Baby Budget.

Put money aside where you can and start saving early. The more you can save along the way the less stress you’ll have when it comes time to start paying for childcare.

To find out if there are any government entitlements you can access visit the Department of Human Services.

4. Protect your family
To ensure your family is protected you will need to ensure your superannuation, insurance and your will are all up to date.

Superannuation
If you stop working to start a family your employer’s contributions into your superannuation account will stop. There are a number of options for you to consider with superannuation:

• If you have a partner, can they make super contributions on your behalf?
• Are you eligible for a government co-contribution?

A qualified financial advisor will be able to help you make a decision on what to do to ensure the best for your financial future.

Insurance
Taking out insurance will help set your mind at ease. If you do not have insurance in the following areas, it will pay to take a look at each option. Now you have a small child relying on you, the stakes are higher if something were to happen to you or your possessions. Insurance products you may like to consider include:

• Motor vehicle insurance
• Home building and contents insurance
• Income protection
• Life insurance
• Your will

Legally, you will need to protect your child through your will. As well as thinking about who would be the guardian of your child should something happen to you, it is important you have your finances in order and written into your will correctly.

Ensure you have done a stock-take of your financial situation. This includes closing any accounts you don’t use and putting your money where it is most viable. Your Bank can help you do this.

You can request help with your will through your State Government. For example, Queensland residents can contact the Queensland Public Trustee for help.