Working out what’s best for your family

Wilson Luna

When you’re pregnant it seems like your whole life becomes public property – everyone seems to think that it’s okay to pat your belly and share their opinion about what you ‘should’ do and unfortunately, most people won’t start minding their own business once the baby is born!

Regardless of whether your kids are newborns, pre-schoolers or ‘big school’ kids, there’s a lot of pressure on parents to do the ‘right’ thing, especially when it comes to deciding when – and if – to return to work. The truth is that there is no answer that’s right for everyone, only the answer that makes the most sense for you and your family. Your decision is ultimately going to depend on your personal circumstances and on what feels right for you, but having the right information is going to make that choice a whole lot easier!

Not returning to work does mean losing your income, so you’ll have to make some adjustments to your lifestyle to accommodate your new financial situation. There are a few things you can do to help make this easier:

Create a new budget that reflects the change in your circumstances. If you’re still expecting, have a ‘practise run’ by putting your salary aside in a separate account and living off what your partner earns to get used to the changes; to make it more realistic, visit Centrelink (http://www.centrelink.gov.au/internet/internet.nsf/individuals/pg_index.htm) to find out what payments you’ll be eligible for – you can use as much of your income in your trial budget as you’ll get in support payments.
Consider adopting a three bank account system. Deposit your partner’s salary into a family account to pay any household expenses, and have an ‘allowance’ for each of you deposited into your own private accounts. Having access to money that’s yours can help reduce feelings of financial dependence, and avoid disagreements over how money is being spent.
Keep adding to your superannuation. Falling behind on your super contributions, even for just a few years, can seriously affect the quality of your post-retirement lifestyle. While you’re not earning, your partner can make super contributions for you and may even be eligible for an 18 per cent tax offset.

On the other hand, going back to work means making child care arrangements, which can be very expensive. The Raising Children Network reports that the average national weekly rate for day care centres in 2008 was $260, but also states that the price increases by about ten per cent a year. If you’re going to use child care, you’re need to do your homework to ensure that you’re getting the best service for your child at the best price – you can start by heading to the National Childcare Accreditation Council website (http://www.ncac.gov.au/) to take a look at the handy fact sheets that can help you find a service that suits your child’s needs and search for providers in your area. The Child Care Access Hotline (http://australia.gov.au/service/child-care-access-hotline) also offers free information and advice on how to select a provider that won’t break your budget.

You should also contact the Family Assistance Office (www.familyassist.gov.au) to find out about the Child Care Rebate and Child Care Benefit – you do have to meet income, work and study requirements to qualify, but if you are eligible, you can use the estimator (http://australia.gov.au/service/child-care-estimator) to get an idea of what benefits will be available to you.

Alternatively, you can try to keep it in the family, like the 33 per cent of working parents with babies who use ‘parent only’ care. If you have flexible working arrangements, it might be possible for you to parent in ‘shifts’ and share hands-on parenting time. While this doesn’t work for everyone, it’s a great way for both parents to have some quality time with the kids, and it can save you a small fortune in fees.

Finally, remember that the decision for both of you to go back to work is a personal one and there’s no ‘right’ answer – just the one that will be right for your family. Whatever you decide there will always be challenges to overcome, but if you work together as a family there’s no limit to what you can do.

If you liked this article you might also be interested in these other articles about parenting and money:

Your Family Your Money eight-month baby financial plan

Take the experimentation out of combining kids and money

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Author's Biography

Wilson Luna is an author, wealth adviser and founder of Your Family Your Money. Your Family Your Money’s goal is to simplify traditionally complex financial strategies, demystify financial jargon and debunk common financial myths, becoming every family’s first stop for financial advice, information and inspiration

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