Financial planning for your growing family

Starting a family, whether it be taking those first steps of planning or knowing your baby is on their way, is exciting – and expensive. Before you start thinking of paint colours for the nursery, it’s wise to understand the costs involved in raising a child.

Financially planning your growing family

Knowing the costs

While there’s no set cost to raising a child, with many variables to take into consideration, a University of Canberra study found it costs a middle-income family $812,000 to raise two children until they leave home.i

Even before your child enters the world, there are costs. If you choose the public hospital system (which three quarters of pregnant women in Australia do), you won’t be out of pocket much but there can be some expenses, such as paying for additional ultrasounds and medications.ii Private hospitals are estimated to cost anywhere between $2,500 and $20,000 with private health insurance.iii

You will need to buy baby furniture and a car seat, and there will be the ongoing costs of nappies and clothes to keep in mind. Other factors, such as whether baby is formula fed and how soon you introduce food, will also impact your finances – some of these can be planned for, while others are more challenging.

What you are entitled to

If this all sounds a bit daunting, remember that there is financial support available. Depending on your/your partner’s work situation, you might be able to access paid maternity/paternity leave.

You might also be eligible for the Australian Government’s Parental Leave Pay, an 18 week payment at the minimum wage, which the primary carer receives after the birth of the child. There is also a Dad and Partner Pay, a payment for up to two weeks, also at the minimum wage and a Child Care Subsidy which is paid directly to your providers to reduce the amount you pay, should you be eligible.

Creating a family budget

Whether you have an existing budget or this is your first time creating one, you will need to take into account your growing family. Consider your living expenses and mortgage or rent, and whether this will cover your family or not – will you need to renovate or move in the near future?

Also take into consideration childcare costs. It is estimated that an average-earning Australian couple with two young children spend around 17% of their income on full-time childcare.iv Budgeting for future childcare costs will mean these won’t take you by surprise and it can help you make decisions around work and childcare arrangements.

And while your focus might be on the immediate future (and therefore a newborn baby or toddler), don’t forget to plan for the ongoing costs for your growing child. Of course, there are things you can’t plan for, but you can still think ahead.

When it comes to deciding on public or private education, you can use the Cost of Education Calculator to get an idea of how your finances will be impacted. This can then be taken into account in your family budget.

Protecting your future

When your family expands, it is a good time to update your will. While not a topic many of us want to dwell on, thinking about what would happen to our family when we are no longer around is important – you will want them to be taken care of.

Once children come on the scene, the need for life insurance is even greater. If something were to happen to you or your partner, then the financial burden could be significant. Who would look after the children? Could they stay at the same schools? Could your partner pay the mortgage on one salary?

Income protection, life insurance, trauma insurance and total and permanent disability may be considered. Another consideration could be to cover both partners even where one isn’t working as the costs associated with childcare and household tasks can be substantial.


This new chapter of your life, whether it is beginning or in the planning stage, is an exciting and special time. By planning as best as you can, you’ll make the transition smoother when it comes to financial matters. We’re here to help, so reach out on 03 9553 0271 for advice.

i https://www.moneyandlife.com.au/family-and-life-events/what-does-it-really-cost-to-raise-kids/

ii https://www.abc.net.au/everyday/the-cost-of-childbirth-and-the-hidden-bills-to-prepare-for/10350778

iii https://www.pregnancybirthbaby.org.au/the-role-of-your-obstetrician

iv https://data.oecd.org/benwage/net-childcare-costs.htm

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CFP® Dip FP
Authorised Representative 298494
Interprac Financial Planning Pty Ltd 

Darryl Jopling

Senior Adviser

I have worked in the financial services industry since 1982 and as a Financial Adviser since 1999.

I have worked for large Financial Planning businesses, Membership based organisations and looked after the financial planning needs of clients within an Accounting Practice before starting my own business.

I am married, have 4 older children and a grandson and I am keen golfer with mixed results like many .

I have been through many of the strategies I talk with clients about myself and with my family.

I have been through the journey of seeing my parents move into Aged care and negotiated the difficulties and pitfalls of understanding the system for them and this gives me an excellent insight into what is required to assist families at this difficult time.

In a previous roll I used to run retirement seminars looking at Centrelink and Retirement Incomes and how to make these work for you. I have helped many of my clients with Aged Care advice when their parents needed to move into Nursing Homes. For many clients I assist them with superannuation, building wealth and protecting their loved ones with insurance.

I am supported by his, Licensee, Interprac Financial Planning’s in-house resources and ongoing technical, systems and training.

I am committed to understanding your needs and identifying strategies and products to help you achieve your goals.

My guiding principle as an Adviser is to design plans which help to provide my clients with clarity of purpose and the opportunity to build a solid financial foundation.
I will take the time to listen, explain things clearly and keep you informed throughout the advice process.

My experience is complemented by professional qualifications including:

  • Certified Financial PlannerTM Professional
  • Diploma of Financial Planning

At Choice Financial Advice we work with you along the way on life’s journey.

Whether you are getting married, starting a family, embarking on the trip of a lifetime, planning to enjoy your years after work or assisting elderly parents with Aged Care and Nursing Home placements, we can help.