Nothing is such a spontaneous cause for celebration as the anticipation of a tiny new bundle of joy. But as the celebrations peter off and reality sets in, most couples are overwhelmed with the amount of things that need to be organised and arranged before the big day.

You need to pick a hospital, a doctor, a birth plan, a pram, a cot, and the one thing that usually causes the most arguments among families – a name! And then, as the plans start to come together, many couples begin to wonder how they’re going to pay for it all.

This is the time when experience and advice need to combine to create a solid plan for the future. Hopefully, you have a household budget in place – this will make life easier for you because you’ll just need to make some alterations to your existing budget to cater for the new arrival. If you’re yet to create a household budget, now is the perfect time.

Of course, there are a few questions that you’ll need to answer before you start:
• Can you afford for Mum or Dad to leave work without pay if s/he’s not entitled to paternity leave?
• Does your health insurance cover your obstetric needs or will you need to cover out-of-pocket expenses? Do you even want to use your health insurance or would you prefer to use the public system?
• Does your obstetrician charge more than the scheduled fee? Will there be any additional expenses if your baby needs intensive care?
• Do you need to renovate your home, or update your car?
• What will you need when baby comes home? A car seat, a bassinet, a pram, a pram shade cover, a baby bath, baby towels, dummies, bottles, teeny-tiny nail clippers…the list can go on and on!

The thing that most people realise very quickly is that the tiny new person they’re bringing home is going to need a LOT of stuff. The second thing they realise is that they’re the ones who are going to be paying for it all. The great news is that with planning and a solid financial management regime you’ll
be well and truly able to cover all of the costs. Our eight-month baby budget is exactly what you need to make sure that financial problems will be the last thing on your mind!

But first you need to sit down – did you know you’ll need $448 000 overall to raise your kids (that’s if you give your new bundle a playmate). We told you to sit down because it’s not good for pregnant women to fall over! We all knew that it could cost a lot to raise a family, but most of us have probably been in the dark about how much.

The figures may seem daunting, but they should not discourage you, rather look at them as something to aim for. Thousands of families are making ends meet by working hard and incorporating financial discipline into their daily life. You can do it too, if you have a strong commitment and a robust financial plan.

Pass it on
One of the greatest gifts that you can give your child is to mentor them in achieving financial independence. From an early age your children will model themselves on you. Before they even learn to speak they take in all the beliefs and values that you demonstrate in your daily behaviour. In fact, by the age of three a child has received 70 per cent of his or her programming.

You will have the opportunity to do something wonderful – teach them all of the things you wish you had learnt as a young person and help them to create a solid financial foundation. The one thing we can tell you is that you need to expect anything when raising a family. So the best strategy to have is one that caters for everything – it starts with the eight-month budget, continues with the Family Survival Plan and ends with you creating financial freedom for each other and your children.

The Family Survival Plan is detailed in their latest book, Real Money Advice for Families,
available at www.yourfamilyyourmoney.com.au. Their comprehensive 8-month baby
budget may also be downloaded for free from their webpage.