Planning for a family

Start with a budget for reduced income

For working parents, having a baby will mean time off work and less income for the family. That means it’s time to start planning for living on a reduced budget. Start by taking a good look at the household’s current income and expenses. Make a budget using our budget planner.

Then adjust it to see what life will be like after the baby arrives. For example, see the impact of going down to a single income.

Does the current budget allow for setting some savings aside each pay? It’s good to have some money saved up to cover all the things you'll need to care for your baby.

Got any high-interest debt like credit cards or hire purchase? Try to pay that off first – that’ll mean one less thing to worry about.

Other government help

Working for Families is government assistance aimed at helping low and middle income families cope with the costs of raising children.

It offers tax credits, accommodation and childcare assistance. Find out more on the Inland Revenue website.

Best Start tax credit is a new Working for Families payment available for children due or born on or after 1 July 2018. You can get Best Start for up to three years after a new baby arrives, but you can’t get Best Start and PPL at the same time. Find out more about Best Start on the Inland Revenue website.

Budget for baby expenses

When you're expecting, you may think you need to spend lots of money on baby gear. But before hitting the shops, it can help to talk to experienced parents about what's really needed when having a baby.

You can save a lot by buying second-hand goods online and some things, like nappies, in bulk. Better still – let friends and family know what’s on the still-to-get list. Most will welcome the opportunity to clear out their unused baby gear or offer to help out with a gift you really need. Toy libraries and other services are aimed at making your job as a parent easier and more affordable.

Childcare and home help

Childcare will be one of the biggest expenses if you (or your partner) return to work after having a baby. This is when supportive family members are worth their weight in gold! Costs and conditions vary widely among childcare centres. Shop around for one that ticks all the right boxes.

Work and Income’s childcare subsidy helps cover the cost of childcare for children under five.

In the case of a multiple birth or a domestic emergency, you may be able to get help with the cost of things like laundry, housework and cooking, as well as childcare. Find out more about financial assistance when having a baby on the Work and Income website.

Protecting a new family

You may not have seen a need for life insurance before having a baby – but now is the time to consider it. If you (or your partner) were to die, how would the family cope financially?

Already have life insurance? It’s a good idea to check the policy before the baby is born. You may need to increase it when having a baby.

Other types of insurance may also be worth considering, such as income protection for working parents. However this can be expensive, so check the budget first.

If you haven’t already, now is the time to make a will or update your existing one. It’s never nice to think about, but it is important to nominate a legal guardian for your child in the event of your death. If your personal or financial situation is more complex – for example you own your own business or are recently separated – you may need to consider other types of asset protection such as a family trust.

Returning to work

The Ministry of Business, Innovation & Employment website has information about your options when you return to the workforce after parental leave – including the right to request flexible working hours.

Plunket has this helpful information when you're returning to work, too.

Where to go for help

• Work and Income: Financial assistance when having a baby
• MBIE: Paid parental leave
• Inland Revenue: Working for Families
• Employment New Zealand: Returning to the workforce and flexible working hours
• Parents Centre
• Plunket: Returning to work
• Work and Income: Childcare subsidy