Ringing Up Baby

It costs an estimated $537,000 to raise two children from birth to the age of 21 in a typical middle-income Australian family, according to AMP’s National Centre for Social and Economic Modelling (NATSEM). That’s a lot of money and increasing fast – up almost 20% from just five years ago.

Try these tips to manage your costs in the early years:

Don't buy everything at once
Budgeting is the most important step in managing costs, according to the Essential Baby website (www.essentialbaby.com .au). It recommends buying in bulk.

Don't skimp on essentials
Whether you're buying your children’s furniture on eBay or borrowing from friends, ensure items meet Australian Safety Standards. Check with the Department of Consumer Affairs in your state for up-to-date information about child and baby safety.

Shop around for great prices
Buying second-hand doesn’t mean buying second-rate. Good-quality second-hand clothing, for instance, can be bought online at a number of sites. Essential Baby has trading forums to help members find bargains.

Get government help
The Australian parenting website raisingchildren.net.au provides direction on how to make the most of your money. You can look up your entitlements and find ways to get on top of things.

The Baby Bonus lump sum payment is currently $5000 per child for those with an annual household income under $150,000. To be eligible you need to claim within 26 weeks of the baby’s birth – apply online at familyassist .gov.au or by phoning 13 61 50.

Make sure you also check your employer's maternity allowance scheme.