Tiny arrival, big expenses

PARENTS are drowning in the expense of having a baby and going into massive debt as a result.

News Corp can reveal a survey of 1002 Australians in July found one in five parents had to return to work earlier than planned after having a baby due to financial distress.

Alarmingly, one in 10 families said they had relied on credit cards to cover basic living costs in the first year of their baby’s life.

The research, conducted online by PureProfile on behalf of Mozo, also found nearly 70 per cent of Australian families with an infant felt some level of financial strain in the first year of their baby’s life and one in five parents found the expense of a new baby was more than they had anticipated.

Nearly half of all parents ex- an infant’s life is hard to pin down but is estimated to cost parents anywhere between $3000-$15,000 depending on what you buy,” she said.

“Making a budget and being aware of your incomings and outgoings is crucial to stay financially afloat when managing the cost of a new infant.”

Alys Gagnon, executive director of The Parenthood, said getting more employers on board with supporting and providing extended paid parental leave was the key to reducing financial strain for families.

“I would argue that lots of employers talk a big game about gender equality, but there are not many employers that are willing to put their money where their mouth is and make sure parents have access to the money and time that they need to spend with their newborn babies,” Ms Gagnon said.

Kate Pollard, co-founder of Circle In, a business designed to get more parents back into the workforce and in control of their parental leave, said the rising cost of living was pressuring families back into work after having a baby “not on their own terms”.

“It is unfortunate but I think before having kids, where possible, couples do need to talk about money and need to plan for a baby,” she said.