Finance: Budgeting for birth

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Having a baby is exciting, so you don't want money worries spoiling things.

If you're a working mother, take a look at your household income and expenses, then adjust it to see what life will be like after baby comes. If you have any high-interest debt, try to pay that off first.

Paid Parental Leave is a government-funded payment that helps cover working mothers' loss of income when they take parental leave - for up to 14 weeks. If you're not eligible, you may be able to get the parental tax credit - paid for eight weeks.

Before you spend lots on baby gear, talk to experienced parents about what you really need.

You can save by buying secondhand goods and buying nappies in bulk, or using cloth nappies. Plunket offers a car seat rental service, toy libraries and other services to make parenthood more affordable. They also have an online baby budget calculator.

Childcare will be one of your biggest expenses if you or your partner returns to work, so shop around. Work and Income's childcare subsidy helps cover the cost for children under five.

Consider life insurance. If you already have it, check your policy before baby is born. Consider other insurances, such as income protection, but check your budget first.

Make or update your will. It's important to nominate a legal guardian for your child in case you both die.

When you return to the workforce after parental leave find out about your right to request flexible working hours.

Information
Work and Income:
Financial assistance when you're having a baby
Childcare subsidy
workandincome.govt.nz

Department of Labour:
Paid parental leave
Returning to the workforce and flexible working hours
dol.govt.nz

Inland Revenue:
Parental tax credit and Kiwisaver advice
ird.govt.nz

Plunket:
Baby budget calculator and car seat rental service
plunket.org.nz

Parents Centres:
Return to work programme
sorted.org.nz