Essential money moves for soon-to-be parents
Written and accurate as at: Jul 14, 2025 Current Stats & Facts
Bringing a new life into the world is undoubtedly one of the most exciting – and, let’s be honest, expensive – milestones you can ever experience. Between sleepless nights and a steady stream of milestone moments, there’s just so much to plan for.
But while you’re probably spending most of your time thinking about baby names and car seats, getting your finances sorted can set you up for a solid transition into parenthood.
Not sure where to begin? Here are a few helpful money moves to make before your bundle of joy arrives.
Start planning for parental leave early
Parental leave is one of those things that feels far away, until it’s suddenly not. Knowing exactly what type of support is available, and how your income might change during those early days and weeks of parenthood, is a great place to start.
If you’re eligible, the government’s Parental Leave Pay scheme gives you up to 24 weeks of pay at the national minimum wage. Some employers also offer their staff paid leave, which can be taken in full or split between partners. Depending on your circumstances, you could benefit from both.
Once you’ve done the maths on your expected income, try to build a buffer into your budget – enough to cover the must-haves like rent/mortgage, food, utility bills and baby gear for at least a few months. That way, when your leave starts you’ll feel much more confident adjusting to your new role.
Plan ahead and save
You don’t need to account for every nappy or onesie, but now’s a great time to get across your current spending habits and work out where you might need to cut back.
The good news is many of the costs of having a newborn come with plenty of lead time. Hospital bills, nursery furniture, dummies and even bulk-buy nappies can all be planned for months in advance – and in many cases, bought second-hand.
It might be a good idea to create a new category in your budget just for baby-related expenses. Even setting aside a small amount each time you get paid can limit any last-minute stresses or debts once the big day arrives.
Get your insurance sorted (yes, really)
No one loves talking about insurance. But once you have a little one that depends on you it becomes a lot more than just another box to tick.
Consider taking out life insurance and income protection, as they’ll provide for your family if something happens and you’re unable to work or contribute financially. Most super funds include default levels of cover, but they’re not always enough. So take a moment to see whether it meets your needs now that your circumstances are changing.
Some private health policies also include pregnancy and childbirth cover, but you’ll have to see out the mandatory 12-month waiting period before making a claim. So if you’re thinking about starting a family in the near future, get ahead of it now.
Think about investing for your child’s future
It might feel strange to start thinking about your child’s future before they’ve even arrived. But putting aside small amounts early – like for school fees or their first car – can make a massive difference down the track. And trust us: those years will fly by.
You don’t need to go all-in with shares or managed funds (although some parents do). Even a high-interest savings account or term deposit in your own name can help you build a financial cushion over time.
Just be careful about whose name the investment is held in. Children are taxed at higher rates on unearned income to discourage income splitting, so in many cases keeping it in your name – and earmarked for them – can be a better tax strategy.
Put a will in place (or update it)
It’s no one’s idea of fun, but once you become a parent then having a will in place is essential.
A will lets you nominate a legal guardian for your child and decide how your assets would be distributed if something happened to you. It’s also a good chance to check that your superannuation has a valid binding nomination, as super doesn’t automatically form part of your estate.
If you already have a will, now’s the time to update it. If you don’t, creating one doesn’t need to be expensive or complicated. There are lots of online services that will help you put together a legally valid will for a modest fee, or you can speak to a solicitor or estate planner.
Don’t forget about super
When you’re on parental leave, it’s easy for super contributions to fall off the radar, especially if your employer doesn’t pay super on top of your government leave entitlements.
If it’s financially viable, try topping up your super while you’re on leave, or see if your partner is in a position to make spousal contributions on your behalf. Even a few small contributions now can help offset the longer-term impact of time away from work.
It’s not essential – and certainly not more important than keeping the lights on – but if you’re in a position to think long-term, it’s worth looking into.
There’s unfortunately no one-size-fits-all plan for new parents. Your situation and your goals will dictate the financial decisions you can make. But what’s most important is to take some time right now to get on the front foot – with your leave, your budget, your insurance and your future planning. You’ll be in a stronger position to enjoy those early months for what they are: messy, joyful and totally unforgettable.
