How to Financially Prepare for a Baby – Budgeting, Childcare, and Money Moves Every Parent Should Know

By Molly Benjamin, Founder of Ladies Finance Club

Listen to the full podcast here.

Bringing a baby into the world is exciting, but it also comes with major changes to your finances. From baby expenses like prams and cots to ongoing childcare fees, plus the hit from maternity leave and the long-term impact on your superannuation, it can feel overwhelming.

In this episode of Get Rich, Molly Benjamin (founder of Ladies Finance Club) chats with financial adviser Jayde Jenkins and Reset Podcast host Ash Cam about the reality of money, parenting, and motherhood, and how smart financial planning can make all the difference.

Why Every Parent Needs a Baby Emergency Fund

The first money move? Build an emergency fund. As Jayde explains, unexpected baby expenses are inevitable. From medical appointments to vitamins, eczema treatments, and even early intervention therapies, costs can pile up. She suggests aiming for around $5,000 as a safety buffer, so you’re not forced to dip into debt.

Think of it as your financial safety net for both you and your baby.

The Real Costs of Pregnancy and Baby Essentials

Ash shares her experience of budgeting for her first child. She originally planned $3,500 for basics like a cot, carrier, and pram, but once medical bills, private scans, and extras were included, the figure was closer to $15,000.

Even in the public system, Molly highlights that there are surprise costs like genetic tests ($500 with no rebate), supplements, and extra appointments.

The takeaway? Budget generously and expect the unexpected.

Planning for Maternity Leave and Income Shifts

For most families, the biggest financial adjustment isn’t the baby gear — it’s the loss of income during maternity leave.

Jayde recommends:

• Researching your eligibility for Parental Leave Pay and whether your employer tops it up.
  
• Setting up a budgeting system in advance to prepare for lower household income.
  
• Reviewing joint finances so both partners share the costs of parenting.
  

This is also the time to revisit lifestyle choices, like housing or car upgrades to make sure they align with your new priorities.

Childcare Costs and What to Expect

Childcare can be one of the largest ongoing expenses for new parents, with fees of $150–$180 per day. While subsidies help, your family’s income determines eligibility.

Jayde explains:

• Families with two kids in care often receive an extra 20% subsidy.
  
• Some states (like Queensland) offer free kindy for 4–5 year olds.
  
• Waitlists are long, so parents often sign up during pregnancy.
  

For working mothers, understanding these costs upfront is essential to effective financial planning.

Protecting Your Superannuation and Insurance

One of the biggest money traps for women is the superannuation gap created during motherhood. The government now pays super on maternity leave, but Jayde suggests going further:

• Voluntary super contributions before or during leave.
  
• Super splitting with your partner to keep balances even.
  
• Reviewing insurance (life, income, trauma) to protect your growing family.

Smart Financial Planning Before Baby Arrives

Beyond budgeting for nappies and cots, Jayde suggests “financial nesting”:

• Update your will and guardianship plans.
  
• Review property and asset protection strategies.
  
• Set up joint accounts for shared household costs.
  
• Keep your financial agreements clear and fair, especially in de facto relationships or marriage.
  

It’s about creating long-term stability for your family.

Final Advice from Jayde & Ash

• Jayde: Parenthood will always bring money surprises, but solid financial planning will carry you through the high-cost years of childcare and school fees.
  

• Ash: Don’t compare your parenting timeline to others. Focus on what works best for your lifestyle and finances.

💡 Takeaway: Preparing financially for a baby means more than buying nursery furniture. It’s about building an emergency fund, protecting your superannuation, planning for childcare, and using smart budgeting strategies to make motherhood less stressful and more joyful.

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