10 Hacks for Prepping Your Parental Leave Budget

Having a baby is so very exciting, but with the cost of living rising … and rising, not many couples can go from two incomes to one and not be a little bit stressed about it! We’ve put together 10 hacks for prepping your parental leave budget, because with the right planning in place you’ll be able to head off on parental leave excited, not freaking out. 

The first thing you need to do is think about how much leave you want to take. Do you think you’ll be itching to get back to work, or do you want to take your time? Spoiler alert though: whatever you think you want now, it might very well change once baby comes along, so make sure your plans - and your budget - aren’t so tight that you can’t change your mind. 

These hacks for prepping your parental leave budget will help you understand your financial position and what you need to do to make sure your time off (and let’s be honest, it’s no holiday!) is spent soaking up your little one, not worrying about money or when you need to get back to work.

1. Check yo’ entitlements

This is your obvious first step - you need to work out what you (and your partner, if you’re in a relationship) are entitled to parental leave wise, so you know where you’ll stand financially. If your workplace doesn’t offer paid parental leave, you may be entitled to paid leave from The Australian Government, or perhaps even a mixture of government and workplace entitlements. At the moment, the government offers 18 weeks of paid leave based on the weekly rate of the national minimum wage (which is just over $800 at the time of writing). If your baby is born from July 1 2023, you’ll be eligible for 20 weeks paid leave from the government - hooray for parental leave reform!

TIP: If you’re entitled to paid parental leave from your employer, have a think about what will work for you and if they’d be willing to be flexible on how it’s taken. For example, your employer might offer three months of full pay parental leave, but perhaps they’d be willing to pay you half pay, for six months, meaning you’d have a regular income you can count on for six months of leave. Also, could you ask for a pay rise before you go on leave? I know it might feel scary, but if you’re due for a payrise, don’t not ask because you’re pregnant. If your salary goes up, so will your parental leave payments and that could be a big financial help.

2. Get a look at the full picture

When it comes to money, you need to take your head out of the sand and get a really clear understanding of what is coming in, and what is going out. This exercise isn’t necessarily about restricting your spending, it’s about becoming aware of where your money goes and making sure you’re ok with what you’re spending your hard earned cash on. There are heaps of free money tracking apps that you can link to your bank accounts that will tell you exactly where your money is going (yes, you do spend $350 on Uber Eats every week. Ekk!). Once you have a clear picture, you’ll be able to find any obvious places to save or pull back on. 

3. Bank your leave

From the moment you find out you’re pregnant, try and hold onto all the leave you can. Of course this can only happen if you’re well enough to work during your pregnancy, so this might be out of your control. But if you can, try and bank as much leave as you can - both sick leave and annual leave -  then you can tack it on to your parental leave to give yourself some more paid time off with your little one. 

TIP: This doesn’t mean you can’t go on that Babymoon! Look for a long-weekend to take advantage of!

4. Do a trial run

While you’re pregnant and if you’re in a relationship, do a trial run of living off one income. Not only will this help you work out if it’s possible and where and how it might be tricky, but it’s a great way to help you save money for when you’re actually on leave. Set it up so all of, or a large portion of, your salary goes directly into a savings account. This means you won’t be tempted to spend it, and you’ll be amazed at how much you can save by doing this on and off in the lead up to the baby’s arrival.

5. Something old, something new, something borrowed …

Buying baby things is exciting, and one of the best bits about being a mum to be! But also, it’s very easy to get carried away buying expensive things you really don’t need. There are so many great rental businesses out there now that let you rent the big ticket items you won’t use for very long. Think bassinets and car capsules, baby swings and travel cots. Consider renting these to save a tonne of money, or perhaps a friend or family member has one you can borrow for free!

6. Big ticket items

It’s no secret that babies can cost a lot of money and there are a few big ticket items that you’ll need to fork out for to set yourself up. For the big exxy items like a pram and cot, don’t impulse buy! Shop around for the best deal or wait until there are sales like Black Friday, Boxing Day or Cyber Monday where you can save big bucks! Or even better, head to the next One Fine Baby expo for special deals and discounts too!

7. Meal planning

Don’t roll your eyes just yet … yes, meal planning can save you a lot of money! Go back to item #2 on this list and have a look at how much money you’re spending on takeaway or eating out. If it’s a significant amount, meal planning can really save you a lot of cash. Meal Planning doesn’t mean you need to eat boiled chicken and broccoli every day, it just means being more organised so you don’t impulse shop or impulse Uber Eats! If meal planning isn’t up your alley, maybe try a meal kit company like Hello Fresh or Marley Spoon to make it easy.

TIP: Do your grocery shop online so you don’t just buy everything yummy you see as you wander the isles. 

8. Suss out your subscriptions

Most of us have a bunch of direct debits that fly out of our bank accounts each month and we don’t even bat an eyelid, but add them all up and it can be a lot. Do you really need those five different streaming services, Apple Music and Spotify, plus that app that edits photos you pay $17 a month for? And can you pause that gym membership for a few months, when you know you won’t be using it?

9. Pick up the phone

So, if you’re like me, this may be your worst nightmare, but I promise it will be worth it. If you have a mortgage, or pay bills like home and contents insurance, or private health insurance, or even your phone bill -  it’s worth picking up the phone and talking to your current provider to see if they can offer you a better deal. And if it’s a hard no from them, check out other providers and see what they can offer you. This exercise might take you a few hours on the phone (and let’s be honest, on hold!) but it could save you thousands, seriously!

10. If you don’t ask …

Some people feel more comfortable than others doing this, but if you don’t ask, you won’t get! If friends and family are throwing you a baby shower, or work asks you what you need, be honest and tell them. Perhaps set up a registry with all the baby items you’re after to make it simple - this will save you a bunch of money buying stuff others give you, and stop you from receiving 33 onesies, which are cute, but unnecessary! This goes for after the baby arrives too. If someone asks you what they can bring or what you need, tell them a meal would be lovely! 

TIP: If the idea of asking your friends or family to buy you something specific makes you squirm, is there a person in your life you could delegate this to? Maybe a sister or BFF who you could put in charge of a registry and direct people to if they ask? You could say something simple like, “My beautiful sister has actually set up a registry for me. So let me get her to get in touch with you!” Easy without the awkward!

By Rebecca Bodman
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One Fine Baby Contributor