Money Management /

How to budget for a baby

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While Australia's birth rate isn't as high as it used to be, we still introduced nearly 300,000 new humans to our lives over the course of 20141. Starting a family is a huge step in your life - for many, they realise nothing is the same as soon as they decide to become parents.

Home is where the heart is

First things first, do you have a home that can accommodate a new baby? For some, you'll want a longer-term abode, with at least a couple of bedrooms. In doing this, you may want to consider how far away from work you will be. Recent data has shown that in Wollongong, it's possible to get houses for less than $514,0002, which may allow you to set up a home loan on even a modest budget.

Alternatively, you may wish to consider entering a long-term rental agreement if you have decided to rent. If you're staying there for the long term, then you may wish to think about local infrastructures such as schools, hospitals, shopping areas and parks nearby especially if this is likely to be your home for a while.

Working out the work

To begin with, you could start tracking what you spend before you have a baby, and factor in the costs involved once you have a child: doctors' fees, extra food, transport, care costs, even nappies could be included.When your first baby is born, your financial goals may change significantly. Where your investments might have previously been a focus, you may now want to concentrate on putting savings aside for education or a rainy day fund for your child. Who will work, whether you will work part time or full time, and how much you will then be able to earn are important considerations for your family.

Are you falling short or have money left over? You may wish to go back to drawing board with work or living situations. When you want to clarify banking or financial opportunities and assess whether you have the right banking products for you now, and the long term, don't hesitate to give the team at IMB a call.

Calculate a budget using an IMB Bank Budget Calculator

Source:

MoneySmart

1 - Australian Bureau of Statistics

Why choose IMB Bank?

Established in 1880, IMB has been helping people achieve their financial goals for 139 years. IMB offers a full range of banking solutions including home and personal lending, savings and transaction accounts, term deposits, business banking, financial planning and can arrange a wide range of insurance and travel products.

IMB has a growing branch network throughout the Illawarra, Sydney, NSW South Coast, the ACT and Melbourne. We have a lending specialist in every branch and a team of mobile lending specialists who will come to you. IMB members enjoy access to free automated phone and internet banking and a team of professionals who are just a phone call away at our locally based call centre.

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