Parents unprepared for financial burden of having a baby

Thousands of Australian parents wish they'd been more financially prepared before having children.

It's a given that having a baby can cost parents thousands before they're even born — and while there's no "perfect" time to have kids, parents wish they'd been more financially prepared before starting a family.

New research from comparative site finder.com.au surveyed 2013 parents with children aged 12 and under, revealing that 49 per cent wanted to have more savings before having children.

One in eight parents (12 per cent) wished they had bought a home before welcoming a child while 9 per cent would have liked to have had better job security.

Kate Browne, personal finance expert at finder.com.au, said parenthood comes with many new costs which might be a shock to some young couples.

"A cot, change table, pram and car seat are just some of the essentials needed to be baby-ready and these will set you back up to $2000," Ms Browne told news.com.au

"Once you've set up the baby's room, there are numerous ongoing costs which need to be budgeted for — nappies, baby wipes, the list goes on.

Ms Browne said the first year alone you can expect to go through 2500 nappies which will cost you about $860. But all up, some studies show that new parents spend $10,000 in their baby's first year of life.

"I know when I became a mother I couldn't believe how many nappies a young baby can go through a day and just how much they cost. So if you can buy them on sale and stock up it's a good way to save."

According to data from the Australian Bureau of Statistics (ABS) analysed by finder.com.au, the median age of first-time mums in 2016 was 30.5.

The research showed older parents were no more prepared than younger parents in their twenties.

"Despite many parents waiting until they are in their thirties or forties to have children, these parents aren't necessarily more financially secure," she said.

She said it can be very difficult financially to stop work or make the switch from full-time to part-time work to raise a family but getting on the front foot can make it easier.

"If one or both of you take time off or reduce your hours, this could mean you'll be earning less at a time when you'll potentially be needing more.

"A sizeable nest egg is a good idea — no matter what life stage you're at."

Ms Browne urged want-to-be parents to not only have a birth plan but also a savings plan.

"You'll never fully be prepared but there are some things you can do to plan ahead.

"Looking at your finances and making a budget should help you feel more prepared and less worried about how you will support yourself and your new bundle of joy," she said.