Would-be parents 'need to get finances in shape'

Those wanting to start a family are advised to think about the effect having a baby will have on their finances.

Couples planning on starting a family should consider the impact this will have on their finances.

With the birth of a child "one of the most daunting financial tasks" people will face, a Courier-Mail article points out that the cost of items such as prams and cots, as well as a loss in household income due to a parent taking time off work, can have a significant effect on their ability to manage money.

"The first thing to work out is how long you think you will take off work, whether you will get paid maternity leave and what income you expect after the baby is born," MyBudget director Tammy May advises.

And while "nobody is 100 per cent ready to have a baby", people should create a budget to help plan their spending and avoid constantly using credit cards.

Couples seeking tips for saving are advised by AMP financial planner Darren James to begin setting money aside at least a year before they even think about starting a family.

Last July, the government announced the maximum amount of childcare benefit paid to low and middle-income families was to rise from $173.50 per week to $180.

By Bret Clement