The first year of parenting can feel a bit like playing a video game on hard mode, except you don’t know the rules, your team mate is sleep-deprived and there’s a boss battle (crying baby) every few hours. 

Somehow amongst the drama, you also have to be a semi-functioning adult…

But the good news is, you can plan ahead with your finances, which means one less thing to worry about while you’re figuring out how to get your baby to nap in their overpriced cot.

In Part 1 of this series, we talked about pre-baby financial prep. Now we’re diving into what year one looks like from a money perspective. Spoiler: babies aren’t cheap, but they also don’t need a pinterest-perfect nursery to thrive!

🍼 Step 1: Create a baby fund 

Babies are small, but their shopping list is not. From car seats to cots, there's a lot to think about. 

And while it’s tempting to splurge on all the latest gear, remember: babies grow faster than you can say peek-a-boo. A lot of things will only be used for a few months before they outgrow it!

💡 Money-saving tips:

• Borrow from friends or family (honestly they’ll be thrilled to pass stuff on)
• Check out Facebook Marketplace or local parent groups for good quality alternatives
• Save the $$$ for items you really want brand-new

💸 Rough guide to upfront baby costs:

• Cot and mattress - $100 to $2,000+
• Cot linen - about $150
• Change table - $70 to $600
• Comfortable chair for feeding - $90 to $500
• Breast pump - $150 to $300
• Feeding supplies (bottles, steriliser, warmer) - $50 to $150
• Baby capsule (a rearward facing car seat) - $300 to $750
• Car seat - $300 to $750
• Pram - $500 to $2,500+
• Play mat / bouncer - $50 to $400
• Baby monitor - $50 to $750

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Source: Newbornbaby.com.au, Babybunting.com.au.

Once you’re done with the items you can pay forward the good deed and gift them to your friends and family too…or reuse them for baby 2 😉 

🧷  Step 2: Prepare for ongoing expenses (the baby subscription) 

Upfront costs are just the tip of the iceberg! Once you’ve decked out your nursery and figured out how to fold the pram without swearing, the day-to-day costs kick in. 

Think of these like your baby subscription fees - nappies, wipes, formula, the list goes on.

💸 Monthly costs you can expect:

• Nappies & wipes - $85 to $220 per month
• Formula - $60-$120 per month
• Solid food (from 6 months onwards) - additional $150 per month if you’re buying ready made baby food 
• Baby clothes - $25 to $75 per month 
• Medical visits - Mostly covered by medicare but you might be out of pocket around $13.70 for a GP visit and more for specialist appointments

Source: Newbornbaby.com.au, Babybunting.com.au.

Pro tip: babies don't care about brands. A comfy $15 onesie from Big W works just as well as a $45 boutique one.

💼 Step 3: Adjusting to one income 

If you or your partner are taking time off work, welcome to the one-income club. It can feel like a big shift, but with the right prep, you can make it work.

📝 Here's how:

• Review your workplace’s parental leave policies and check out the Australian Government’s Paid Parental Leave scheme
• If there's a gap between what’s covered and what you need to live on, build a savings buffer to cover the shortfall
• Some couples go into “one-income mode” before the baby arrives to ease into the change and build savings at the same time
• Cut back temporarily on non-essentials. Pause those extra streaming services, swap Uber Eats for home-cooked pasta nights, and enjoy free weekend adventures (hello, pram walks and park picnics!)

⏸️ Reassess your financial goals:

• Press pause on aggressive savings or investments, if needed.
• Prioritise flexibility and breathing room over strict financial progress - just for now.

This season of life is less about hustle and more about heart. Yes, your budget might feel tight, but you’re gaining something priceless in return.

Year one with a baby is like stepping into a new role with no training, no sleep, and a very cute, but very loud boss. The more you can plan ahead financially, the more space you’ll have to soak up those sweet, once-in-a-lifetime moments.

Coming up next in this series: returning to work while raising a baby, and what it means for your income, childcare expenses, and the long-term impact on things like superannuation!

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