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Navigating Parenthood: Smart Financial Advice for Growing Families
- Discover Financial Partners
- Aug 12
- 7 min read
Ben Northwood is a Partner at Discover Financial Partners. He regularly advises families across Bayside and South East Melbourne on building long-term financial confidence.
Becoming a parent is one of life’s most transformative experiences. As a father of two young kids and a financial advisor working with families across Bayside and South East Melbourne, I’ve lived through the sleepless nights, the joy of first steps and the financial curveballs that come with raising children.
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, I’ll share practical tips, personal experiences, and stories from families I’ve worked with to help you prepare for this exciting chapter.
Understanding the Real Costs of Raising a Child
When my wife and I welcomed our first child, we thought we were prepared. But even with careful planning, we were surprised by how quickly costs added up, there’s the cot, pram, car seat, nappies, formula and unexpected medical expenses. We spent close to $12,000 in the first year alone.
I recently worked with Sarah and James, first-time parents in Brighton, who came to me feeling overwhelmed by the financial strain. They hadn’t budgeted for things like specialised infant formula or out-of-pocket health costs and the expected expenses continued to rise with the cost of living. Together, we built a tailored monthly budget and set up a contingency fund. Within six months, they felt back in control and confident about their financial future.
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. When our second child was born, I reviewed our coverage to ensure my family would be financially secure if anything happened to me. 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. When our second child arrived, my wife and I updated our wills and appointed guardians. It gave us peace of mind knowing our children would be cared for according to our wishes.
We also 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 I 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
Before our first child was born, we debated between public and private hospital care. We chose private for continuity of care, but it came with higher out-of-pocket costs. It was the right choice for us, but not necessarily for everyone.
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. When my wife returned to work part-time, we had to weigh up daycare costs vs. her income. We chose a mix of daycare and flexible work arrangements.
Natalie and Mark, a dual-income family in Cheltenham, faced a similar 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. We started a savings plan for our kids when they were born, using a mix of high-interest accounts and investment bonds. It’s a long-term strategy that gives us peace of mind.
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, I’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
Why Work With a Family Financial Advisor?
“Ben 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
As both a parent and a financial advisor, I understand the emotional and financial complexities of raising a family. 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, I’d love to help. Book a free consultation with me, and let’s build a financial plan that gives you confidence and clarity. Ben Northwood is a Partner at Discover Financial Partners. He regularly advises families across Bayside and South East Melbourne on building long-term financial confidence.
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.
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.
