How can you ensure that you can thrive and survive under the current economic situation, even when cash flow is a problem? Simple financial planning.
A ten-year-old study out of the University of Canberra estimated the cost of raising one child to 18 years old varied between $237,000 to $550,000 (NATSEM, 2013). financial planning Newcastle helps us understand that many variables are involved when coming up with a budget. Variables such as Extra food, clothes, recreation, bigger houses, and bigger cars help prove that raising children will probably cost more in the future than we think, and that cost is only going up.
Financial planning Newcastle shows that budgets tend to get tighter when a two-income household turns into a single-income household which occurs at least once in a typical Australian family. The extra costs tend to become unnerving for most young families.
What do you need to save for?
According to financial planning Newcastle, early planning gives you the freedom to deal with life’s ‘what ifs.' Thinking about what you want to happen years and decades in the future can be challenging to comprehend. If significant expenses haven’t been saved earlier than when they arrive, you are in for squeezed cash flow or increased debt.
The first and biggest question will, do you want to send your child to a private school?
The average cost of private schooling in Sydney was $35,325 per year, though this varies depending on where you live or what kind of private school you want to send your child to. At the same time, the regional average was closer to $11,000 per year (Hare, 2022).
Many parents like to buy their kids their first car.
Is this a viable option for you? If yes, would it be an old banger or something with more modern safety features and a corresponding modern price tag? Would you give them your old car and buy yourself a new one?
Do you want to set your child up for their future once they’re an adult?
Financial planning Newcastle recommends that you set up a college fund that will facilitate the acquisition of textbooks, housing, and other costs since the HECS-HELP scheme can fund university tuition. Setting aside a college fund will help you focus on being debt-free and saving for retirement?
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