Navigating Parenthood: Smart Financial Advice for Growing Families

Becoming a parent is one of life’s most transformative experiences.

Whether you're expecting your first child or expanding your family, working with a family financial advisor can help you navigate the financial side of parenthood with clarity and confidence. In this guide, We'll share practical tips, personal experiences, and stories from families we’ve worked with to help you prepare for this exciting chapter.

Understanding the Real Costs of Raising a Child

Financial Planning for parents can help forecast these expenses, reduce discretionary spending, and build a flexible plan that grows with your child. We also recommend building a 3–6 month emergency fund to buffer against income changes or unexpected costs.

Government Support and Entitlements

Many new parents aren’t aware of the financial support available through programs like:

• Paid Parental Leave

• Family Tax Benefit (Parts A & B)

• Parenting Payment

• Child Care Subsidy

These can significantly ease the financial pressure during the early months. We help families understand eligibility, income and assets tests, and how to structure payments whether fortnightly or as a lump sum. This ensures you’re not leaving money on the table.

Superannuation During Parental Leave

One often-overlooked area is superannuation. While government parental leave now includes super (as of July 2025), many families still face gaps in retirement savings especially mothers who take extended leave.

We advise clients on:

• Making voluntary contributions

• Spouse contributions for the lower-income partner

• Strategies to protect long-term wealth during time away from work

  
  

These small steps now can make a big difference later.

Protecting Your Family’s Financial Future

Life insurance isn’t just a checkbox it’s peace of mind. It’s not a pleasant topic, but it’s one of the most important conversations you’ll have as a parent.

Clients Tom and Priya had minimal life insurance through Tom’s employer.

We helped them secure comprehensive policies that covered their mortgage and future education costs including:

• Life Cover

• Total and Permanent Disability (TPD)

• Critical Illness Cover

• Income Protection

Priya also took out a policy to ensure both parents were protected. They now sleep easier knowing their children are protected.

Estate Planning: A Gift of Clarity

Creating a will and nominating guardians is one of the most loving things you can do for your children.

We help clients appoint:

• Executors to manage the estate

• Trustees to oversee assets for children

• Powers of attorney for medical and financial decisions

Estate planning isn’t just for the wealthy it’s for anyone who wants to ensure their family is protected. As your advisor we can connect you to one of our trusted estate planning lawyers to help you set up a will, power of attorney, and guardianship plan tailored to your family’s needs.

Health Insurance: Making the Right Choice

Emily and Josh, expecting parents in Hampton, wanted private care but weren’t covered for obstetrics. We helped them upgrade their policy and budget for the gap fees. They were able to access their preferred hospital and obstetrician without financial stress.

We also suggest families consider:

• Add their newborn to private health insurance within 60 days to avoid waiting periods

• Understand that children are typically covered as dependents until age 18–25 (if studying)

Review your health insurance early. A family financial advisor can help you compare plans and avoid costly surprises.

Planning Your Return to Work

Childcare costs in Melbourne can be steep.

Natalie and Mark, a dual-income family in Cheltenham, faced a dilemma. Natalie wanted to return to work but wasn’t sure if it was financially viable. We calculated the net impact of childcare costs and helped her negotiate a hybrid work schedule. She returned to work with confidence and financial clarity.

We also help families consider:

• Family daycare

• Long daycare

• Nannies

• Occasional care

• In-home care

Each has different costs, subsidies, and suitability depending on your family’s needs. Your advisor can help you assess leave entitlements, childcare options, and work flexibility to find the best fit for your family.

Property and Mortgage Planning

Growing families often need more space. Whether it’s upsizing or refinancing, we help clients:

• Review mortgage structures

• Plan for future property goals

  
  

We also explore whether it’s better to renovate, relocate, or invest in a second property based on your long-term financial plan. We will put you in touch with an experienced mortgage broker who will be able to enact our debt strategies and ensure you have the right loan to set your family up for flexibility and growth.

Saving for Your Child’s Future

From school fees to university, education costs can be daunting.

Rachel and Ben, parents of three in Beaumaris, wanted to build an education fund but didn’t know where to start. We set up a monthly investment strategy that reinvests dividends and grows tax-effectively. They’re now on track to cover private school fees and university costs.

We help families choose between:

• Education savings plans

• Investment bonds

• Family trusts

• Offset accounts linked to mortgages

Financial Planning for families can help you choose the right savings vehicle, whether it’s a trust, investment bond, or education fund.

Teaching Kids About Money

Financial literacy starts early. I have worked with many clients who have successfully used pocket money and simple chores to teach their kids about earning, saving, and spending. It’s amazing how quickly kids pick up on the value of money when they’re involved in small decisions.

Your advisor can provide tools and resources to help you raise financially savvy kids because teaching them about money is just as important as saving it for them.

We also suggest considering:

• Opening a youth savings account

• Using visual tools like jars or apps

• Encouraging goal-based saving (e.g., for a toy or outing)

  
  

Free Download: Family Budget Planner for New Parents

To help you get started, we’ve created a Family Budget Planner a downloadable Excel sheet that includes:

• Baby essentials checklist with estimated costs 

• Monthly income vs. expenses tracker 

• Childcare cost comparison table 

• Emergency fund calculator 

• Education savings goal tracker 

  
  

👉Download your Family Budget Planner here

Family_Budget_Planner_ protected.xlsx

Download XLSX • 86KB

Why Work With a Family Financial Advisor?

“Discover helped us feel financially prepared for our first child. His advice was practical, empathetic, and tailored to our situation. We now feel confident about our future.” - Sarah & James, Brighton

At Discover Financial Partners, we offer personalised advice that evolves with your family’s needs from budgeting and insurance to estate planning and education savings.

We also work with diverse family structures; single parents, blended families, same-sex couples and traditional families and tailor strategies to suit your unique situation.

Let’s Plan Your Family’s Financial Future

If you're preparing for parenthood or navigating the early years, We'd love to help. Book a free consultation and let’s build a financial plan that gives you confidence and clarity.

BOOK A CONSULTATION

Frequently Asked Questions (FAQs)

When should I start financial planning for a baby?

Ideally, before your baby arrives. The earlier you start, the more options you have to budget, save, and protect your family.

What’s the most overlooked cost for new parents?

Childcare and health insurance gaps are often underestimated. Also, many forget to factor in reduced income during parental leave.

Do I need a will if I don’t have many assets?

Yes. A will ensures your child’s guardianship and care are clearly outlined, regardless of your asset level.

Can I still get financial advice if I’m on a single income?

Absolutely. In fact, single-income families often benefit most from tailored budgeting and support strategies.

How much should I save for my child’s education?

It depends on your goals (public vs. private school, university, etc.). We help you model different scenarios and set achievable targets.

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This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances.