Starting a family is an exciting time, but it can also be an expensive one. Luckily, there are a few things you can do before your baby arrives to help you adjust to life as a family unit.
We’ve collected some of the best tips for young Kiwi parents.
First, do a plan
Before you do anything else, you’ll need to do some detailed planning. How much are you likely to need to spend on preparing your home and life for your baby? Will your household income level change once the baby is born, and if so, for how long? How much time do you have to save money between now and when your baby arrives?
Economise where you can
It can be tempting to splash out on loads of brand new things for your first baby. Everything is so cute and everyone so quick to tell you what you won’t be able to do without. But you may find you can save significant sums of money by opting to only buy a couple of the big items new, and sourcing the rest second-hand or borrowing from friends. Talk to your friends who already have kids about the purchases they valued and the things they now realise they didn’t need to spend so much on.
Test drive one income for as long as possible
If you’re planning to have one partner stop work for a period of time, take your new budget for a test drive early. If you can live on one income and save the other for a period of time while you’re both still earning, it will give you some emergency savings in the bank to call on if you need it while your baby is small. It also gives you a chance to test whether there are any pain points in your budget that you might need to address before the need becomes more urgent.
Keep your KiwiSaver going
If one of you is not earning, try to continue to make contributions to their KiwiSaver account – at least $1,042 a year to get the full $521 from the Government. Not only does this help with your retirement savings total but it can be important to show contributions history if you’re hoping to apply for a KiwiSaver First Home grant.
Need a bit of extra help?
If you have your eye on a bigger vehicle to fit all the baby stuff you’ll soon be carting around, and would like to learn more about your options, please call the team at AA Finance on 0800 500 555, seven days a week between 9 am and 5 pm. We’re here to help.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure the content is correct, the information provided is subject to continuous change. Please use your discretion and seek independent guidance before making any decisions based on the information provided in this article.