As a small business owner, you cannot rule out the possibility of cash flow issues when your business is fully operational.
Having a baby is an exciting part of your life, though it adds a lot of extra expenses to your household. There are several upfront costs after your infant is born. Even with proper planning, you may find yourself with a few unforeseen expenses that take you off guard.
You want the first few weeks of your infant’s life to be as carefree as possible so that you can soak in every precious moment. Budgeting ahead of time and understanding funding options can relieve a lot of financial stress.
Create a budget early on in your pregnancy and set aside funds each time you are paid. When your baby is born, you will have a small saving account to help you with expenses. Take advantage of paid leave, baby bonuses, and reliable lines of credit.
Baby Supplies You’ll Need Post-Delivery
It is estimated that it costs a minimum of $140 per week to raise a child in Australia. The supplies you’ll need in your infant’s first year of life can easily surpass $5,000. While you may be given some items from excited friends and family, here are a few items for which you need to budget:
- Nursery furniture (including crib, changing table, etc.) – $1,200
- High Chair – $100
- Food/Formula (will cost substantially less if the mother breastfeeds) – $2,500-$3,000
- Nappies (can cut costs using cloth nappies) – $1,800
- Car Seat – $150-$250 each
- Pram/Stroller – $400-$700
- Linen – $100-$200
- Clothing – $400-$500
- Toys – $300-$500
- Books – $200
- Miscellaneous (Bottles, nappie-disposal, pacifiers, etc.) – $300-$1,000
If you can work out a schedule where one parent is at home with the baby at all times, you won’t have to worry about childcare costs. For Australian families, this price can range from $10-$40 per hour depending on your location and the service you choose.
Early childcare costs may be subsidised to make them more affordable for young families. You can also look into informal childcare options, such as asking a grandparent or aunt/uncle to help you.
Another thing you must consider is that medicare doesn’t cover every medical expense. You will need to have some savings set aside for your child’s treatment.
Budget Throughout Your Pregnancy
Women typically discover that they are pregnant at the 4-6 week mark. If you are able, set aside funds from each paycheck throughout your pregnancy to build up a savings account to meet your baby-expenses.
Your life will become very busy once your baby is born. Having a savings plan will relieve a lot of extra stress and anxiety. Learning to budget throughout your pregnancy will also offset some of the “shock” from living on less.
Shop Sales Ahead of Time
Frequently check for sales on items you know you’ll need for your child. Buying items at a discounted rate can greatly offset the costs later on.
As seasons change, you can often purchase clothing at a fraction of the normal price. Work out how old your child will be and purchase the correct-sized clothing. As children do grow at different rates, try to choose items that will work for a broader portion of the season.
Don’t go overboard when purchasing newborn (size 0000) clothing. Most infants will outgrow these sizes very quickly. While infant shoes are adorable, they can also be quite expensive and are completely unnecessary.
Additional Funding Options
Here are some additional options for funding your child’s entrance into the world:
Reliable Line of Credit
When you need to cover the cost of upfront purchases, look into getting a reliable line of credit through &Solved. We provide personal assessments which will give you customized interest rates and borrowing limits. We are flexible in our repayment plans, allowing you to repay on a weekly, fortnightly, or monthly basis. For your convenience, when another upfront payment arises, you can re-borrow up to your original borrowing limit without having to reapply.
Baby Bonus and Family Tax Benefit
You may be eligible for the Baby Bonus & Family Tax Benefit if you can’t receive parental leave pay for the child. The amount you receive will depend on your household’s annual income. The Australian Government will check your eligibility when you claim your Family Tax Benefit. You can apply up to three months before your child’s due date/adoption date.
Parental Leave Pay
Australians can receive up to 18 weeks of government-funded parental leave pay as well as leave pay from their employer. The 18 weeks are paid at the national minimum wage. Fathers or partners (including same-sex partners) are also eligible for two weeks worth of parental leave at minimum wage.
If you are looking for a line of credit get in touch with &Solved. With us, you can get personalised rates and a quick application—just enough to keep the financial stability of your company intact.