Hard reality for parents
But if you cut your costs, life can be a lot easier
IT'S often said that for a parent, the first year of a child’s life is the most stressful – and the most expensive. But it doesn’t have to be that way.
Financial adviser Adele Martin said constantly thinking about money could be exhausting for parents.
However, there are key cost-cutting steps that can make all the difference and can even improve mental health.
These include buying second-hand clothing, furniture and gadgets, purchasing snacks in bulk, cooking meals in batches and opting for fruit and vegies that are in season.
“Embrace the slow cooker because you can use cheaper cuts of meat,” Ms Martin said.
“Plus there are always leftovers that you can put in the freezer, so on those nights when you don’t have time to cook you can reach for these instead of expensive takeaway.
“Consider second-hand school uniforms some schools have these in uniform shops or buy, swap and sell groups on Facebook.
“Buy snacks in bulk rather then expensive individual serves. For instance, instead of buying individual yoghurts buy a giant tub.
“I invested in a good bentostyle lunch box so things kept better when not in individual packets. It’s also better for the environment. Places like Costco are great for bulk buying.”
Ms Martin said it was also time to call your insurance and electricity providers, telcos and banks to make sure you are getting the best deal.
Research reveals a major gap between expected costs and reality in raising children. The report from comparison service Choosi reveals that the average cost of a child per household is $12,000 per year and that more than half of Aussie parents (56 per cent) feel that starting a family was more expensive than expected.
The cost of childcare, education and food were among the most underestimated costs for parents, research found.
Wealth expert Kathryn Creasy said parents should set up a savings account and emergency fund.
“Saving is significant, but beyond having money for the costs you know you will incur, having an emergency fund that can be called upon
when the unexpected occurs can make life much easier,” Ms Creasy said.
“So put something away for the proverbial ‘rainy day’.”
She also advised parents to bulk-buy baby items, such as nappies, when they are on sale, and to use their local toy libraries, which cut down on wastage and expenses.
Setting up an informal bartering system with friends if they have kids of similar ages was also a good way to dramatically slash costs.
“If you cast your mind back to your childhood, we all wore hand-me-downs,” Ms Creasy
said. “There are very few things that you actually need to buy for children brand new.
“So you look at things like Facebook Marketplace and also swapping with close friends if you have children of similar ages.
“When things go on sale, stock up,” she said.