If you’re planning on taking private health cover or upgrading your policy to cover pregnancy-related costs, it’s important to act well in advance, ideally a year before conception due to waiting periods. In Robert's case, they chose the public healthcare system but later merged their health insurance into a family plan to cover future pregnancies, which only added a small cost.

The government’s paid parental leave scheme provides up to 20 weeks of leave (as at Sept 2024), but the pay is at the minimum wage level. Some employers offer more generous leave schemes, but they may have qualifying conditions. It's also essential to consider the long-term financial effects of taking a break from work, such as career progression and future earning potential.

Women, who typically take longer parental leave, tend to retire with 25% less in superannuation than men. Super isn’t paid on government parental leave but will be from July 2024. Robert suggests considering voluntary contributions to super during leave if your employer doesn’t cover it. Other options include one spouse contributing to the other’s super for a tax offset or splitting super contributions.

When they found out they were expecting, the couple reduced discretionary spending to prepare for the financial impact of parental leave. Building an emergency fund for unplanned expenses can be beneficial, and planning how to cut costs or increase income before going on leave is vital.

Childcare is a significant expense. In Australia, the average family with two children in care five days a week spends 16% of its after-tax income on childcare. Planning ahead can help manage the shortfall between government subsidies and actual childcare costs, allowing parents to make informed decisions about returning to work full-time or part-time.

For parents considering private schooling, it’s advisable to start saving early. Even small weekly contributions can grow significantly over time when invested wisely. Robert and his partner invested in an index fund for their child’s future education. Investment or education bonds are also an option, but they must be established early to maximise their tax benefits.

As soon as they knew they were expecting, Robert reviewed their mortgage situation to ensure they could manage repayments on a reduced income. While they didn’t need to defer payments, knowing the option existed was reassuring. For others, upgrading their home or renovating may be necessary. However, applying for a loan while on parental leave could impact borrowing capacity, so it might be better to upgrade before going on leave or after returning to full-time work.

It’s easy to overspend on baby products, but buying secondhand for big-ticket items such as strollers and cots can save a lot. Choosing high-quality brands allows for resale later on. Waiting until after the baby is born to buy only what’s needed can also prevent unnecessary spending. Setting up a registry for family and friends to purchase gifts is another helpful approach.

Travel costs for visiting family have increased since their baby was born, but Robert and his partner chose to prioritise family connections over material purchases. Delaying the upgrade of their second car has allowed them to focus on what’s most important for them: family. This is obviously different for all families, but an important consideration.