How on earth do you afford it??
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Category: Planning Pregnancy (trying for baby)
Forum Name: Planning Pregnancy (trying for baby)
Forum Description: Trying to get pregnant? Going through fertility treatment? Just planning your first or second child? There are many people out there in the same boat to help and listen and share with
URL: https://www.ohbaby.co.nz/forum/forum_posts.asp?TID=10150
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Topic: How on earth do you afford it??
Posted By: RileyJ
Subject: How on earth do you afford it??
Date Posted: 24 August 2007 at 10:11am
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Hi everyone, my first visit to this forum. Recently I've been thinking that it might be nice to have a child. Hubby agrees but is extremely reluctant because of the financial situation. We both work and I earn more than he does. If we were to have a child I would not be looking at going back to work until the child was at least 2. We bought our house 9 months ago, so obviously have a mortgage and we have a consolidated loan as well as the other usual bills and stuff.
I've played around with our budget.. and it honestly looks like if I was to stop working, we could not survive on his income. I know very little about what benefits or government assistance we could get other than we would be entitled to a community services card. Can someone enlighten me in this regard? I'm 28 and not getting any younger.. would really like to start this "project" soon. Thanks 
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Replies:
Posted By: Kellz
Date Posted: 24 August 2007 at 10:18am
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Welcome to Oh baby!
You would be entitled to working for families tax credits from WINZ- family assistance and in-work beneift ( as long as your DH is working over 30 hrs a week, and I think its different if he is self-employed), once bubs is born. We get around $140 a week. You may also be entitled to an accomadation supplement. If you have been working in your same job at least 6 months before bubs is born you will be entitled to 12 weeks paid parental leave which is about $320 a week after tax (well thats what I got this time last year). Its worth ringing the WINZ family assistance helpline and sussing it out. I found them really helpful! |
Posted By: minik8e
Date Posted: 24 August 2007 at 10:48am
| It's 14 weeks paid parental leave now, that's the only thing I'll add. |
Posted By: MelandBri
Date Posted: 24 August 2007 at 10:55am
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We found it really hard at the start when we had our daughter. I was earning slightly more than my husband and when we lost my pay it was very hard to get used to. But then when the FA payments started coming in it made things so much easier.
It would be worth you ringing WINZ to find out exactly what you will be entitled to, then you know for sure. Then you could start putting part of your pay into a savings account, and leave just the amount of hubby's pay plus some of your pay (to the amount WINZ will pay you). That way you will get used to living off the smaller income, so that when bubs comes along you will be used to it. This worked for us. |
Posted By: busymum
Date Posted: 24 August 2007 at 10:56am
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Here's some links for you:
http://www.ird.govt.nz/wff-tax-credits/ - IRD for WFF tax credits (used to be called family support) http://www.workingforfamilies.govt.nz/accommodation-supplement/ - WINZ for WFF housing/accomodation support. Both of those links have calculators and are mostly based on your (or rather, your DH's) annual income. -------------  |
Posted By: caliandjack
Date Posted: 24 August 2007 at 11:11am
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Personally I don't know how you afford children. By the time you take into account lost income, cost of feeding, clothing and housing another person - it can seem financially overwhelming - almost enough to put me off.
We are currently trying to live mostly off DPs income, and save mine - to see how we would manage, could be a good exercise to see how lose of income would effect you. DP and I are both in our mid 30s now, in some ways we've had the freedom of a good income, and manageable mortgage. We would have to clear a few HPs before we could manage on one income. For us based on DPs income and 1 child we get $100 working for families, thats all we qualifiy for - he earns too much according to WINZ for the rest - IMHO we don't earn much at all. The maternity leave payment - wouldn't cover even half of our mortgage. Good Luck - I've come to the conclusion that if i thought about children logically and rationally I'd never have them.  ------------- http://lilypie.com" rel="nofollow">   [/url] Angel June 2012 |
Posted By: RileyJ
Date Posted: 24 August 2007 at 11:17am
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Thanks for the replies guys!
I checked our those calculators... it seems, based on hubbys minimum wage (he generally earns more but I'm going with worst case senario) and including a $58 accommodation supplement and $142 working for families thing AND having hubby quit smoking, we're still just going to be scraping by. I would however be entitled to paid parental leave, but whats the deal, can I just get that then turn around 14 weeks later and say "oh no I'm not returning to work now, bye!" Cos ideally I'd spend the first 3-5 years at home with the kid. |
Posted By: caliandjack
Date Posted: 24 August 2007 at 11:19am
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If you are resigning from work, you can get it paid out in a lump sum.
Remember WINZ base it on all your income - bonuses included - which sucks. ------------- http://lilypie.com" rel="nofollow"> [/url] Angel June 2012 |
Posted By: caraMel
Date Posted: 24 August 2007 at 11:23am
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I second what everyone else has said. The only thing I can think to add is that you'd be amazed how many of the 'essentials' you can learn to live without, and not miss!
We were just managing on what we had before bubs came along, and worried about how we'd find the extra for another person too. I don't have to buy work clothes anymore, I don't get the expensive haircuts, obviously I don't go out as much. Eating cheaper meals at home more often. Making lunches for DH... Little things make a big difference! ------------- Mel, Mummy to E: 6, B: 4 and: 
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Posted By: RileyJ
Date Posted: 24 August 2007 at 11:23am
At the moment, hubby's income would not cover all our expenses, we'd be hundreds of dollars short. The only way I could see we could do this is if we were to pay off our 1 HP that we have, then talk to the bank to see if we can get our loan term increased thus reducing the repayments. 
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fleury wrote:Posted By: yummymummy
Date Posted: 24 August 2007 at 11:24am
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I think you just need to sit down and get all information from WINZ, from the bank re mortage holidays, work out your budget and find out how much you can reduce your expenses. And then draw the line so to say and figure out what you can and can't afford.
My advice would be to look at all your options and then figure out a way to manage. Also would going back to work before the 2 year mark is up be worse than not having a baby? ETA - the other thing to think about is are things likely to change in the future? ie if you are going to be in a similar position financially 10 years down the track, then would waiting really help? ------------- http://lilypie.com">  http://lilypie.com">
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Posted By: ezza
Date Posted: 24 August 2007 at 11:28am
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its rough ah.
we came to this agreement: I take my 14 weeks paid maternity leave, and then we have enough savings for me to take another 4. After that, I am going back to work from 8.30 till 12.30 - and DF is giong to work 1.30 till 6.30. it was the only real way we could do it. although, to be honest (and i feel this really makes me a failure of a women to say it) i want to go back to work. i would rather wait till bubs is a year old, but thats not possible for us. I'm just thankful we can work it so one of us is at home at all times. Anyway, just my 2 cents. now all i have to do is actually get pregnant!! ------------- http://lilypie.com"> 
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Posted By: mum2paris
Date Posted: 24 August 2007 at 11:34am
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I think it does all depend on alot of things, but as you get more used to being just you and hubby and living on both incomes, you know what they say.. the more money you have the more you need. I think when you look at it, it does work out, it's about being sensible and making a few sacrifices. usually the first thing you need to look at is necessities, the cold hard plain bills you need to pay and see what's over after that, look at your food spending - what you buy at the supermarket that well, could really be skimmed on, cut down, or buying bulk or different brands.. i find it amazing some couples spend so much on grocerys when we can get by on $240 a fortnight for a family of 4, including nappies (and formula when we needed that).
Really its not so much the kids that i find expensive it would be the not working.. (hence why i work) Buy clothes at sales.. start buying now, seriously people think you're nuts but i did that long before kids and had a heap by the time i had Paris, things like singlets, socks, bibs, stretch n grows, the stuff that never changes and you can get at sales for cheap as and buy a heap in different sizes, we still buy a heap at sales in the size up for the next year. As Fleur said, if you wait till you can afford kids, you'd never have em. We got by fairly ok on mike's wage of 24,000 when i first had Paris, thank god it's grown since then! but you find ways to make things work, you go without all the fancy and you accept that your reward is having beautiful kids not fancy clothes and $150 hairstyles. ------------- Janine and her 2 cool chicks, Paris & Ayja 
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Posted By: ezza
Date Posted: 24 August 2007 at 11:36am
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^good comments.
i REALLY want to start buying things now - but i'm TERRIFIED i will jinx us! DAMN IT! ------------- http://lilypie.com">
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Posted By: caliandjack
Date Posted: 24 August 2007 at 11:39am
You are so not a failure if you go back to work. I was fortunate enough to spend 6 months nannying for a 3yr old boy and that taught me that i don't want to be home full time with children - I will be going back to work, not just for the money, but for my sanity. ------------- http://lilypie.com" rel="nofollow"> [/url] Angel June 2012 |
Posted By: RileyJ
Date Posted: 24 August 2007 at 12:01pm
| Oh, you girls are fabulous! Thank you so much for your help. Honestly, I was really feeling quite down about the whole thing, but you know it might not be as hard as we are thinking it might be. |
Posted By: busymum
Date Posted: 24 August 2007 at 12:19pm
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The thing we had to get used to was accepting second hand stuff. A lot of our friends finishing their families were all too pleased to pass on strollers, cots, etc because they had no more need. We've had heaps of clothes passed our way too and still in good condition. Save the buying for must-haves and special occasions! We used less petrol when only one of us worked and we cut but our grocery budget too. ------------- |
Posted By: RileyJ
Date Posted: 24 August 2007 at 1:38pm
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Oh yeah I had thought of trying to pick up secondhand things on TradeMe etc. Most of our friends don't have kids or have JUST had kids so still require all their stuff so probably won't be much they can pass on to us. My mum would probably go nuts with the knitting of clothes though lol
Petrol one cost that will be majorly cut right in half. It takes me 45 mins to drive to work from where we live. |
Posted By: caliandjack
Date Posted: 24 August 2007 at 2:00pm
Secondhand stuff is good, although I can see how easy it is to get carried away with wanting new stuff when its your first baby  .
Not sure how much petrol costs will change, as I don't plan on being a SAHM who actually stays home. There's always the bus I suppose - I used to love going on the bus when I was little. ------------- http://lilypie.com" rel="nofollow"> [/url] Angel June 2012 |
Posted By: caliandjack
Date Posted: 24 August 2007 at 2:23pm
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Don't forget you may have annual leave on top of your paid maternity, and depending on how much you can carry over from the previous year, thats another 6 weeks.
I worked out with savings, we can probably manage 6 months off before having to find a second income source. Can you work from home? I've trained as a massage therapist and plan to work from home to earn a few $$. Some of them tax free. ------------- http://lilypie.com" rel="nofollow"> [/url] Angel June 2012 |
Posted By: ezza
Date Posted: 24 August 2007 at 3:46pm
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I work from home as well (as well as my office job), we have a record label - unforunately the money isnt much!!
Oh well, at least DF can earn an extra $200 a week from gigging. I'm starting to be glad we missed out last month - have just found out we are going on tour in October - don't want to be doing that too pregnant!!!! ------------- http://lilypie.com">
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Posted By: RileyJ
Date Posted: 24 August 2007 at 4:12pm
Oh yeah, never thought of annual leave! No I don't think it will be possible to work from home. To be honest, I quite like the idea of leaving this company for good anyway. I might be able to find something else though. |
Posted By: T_Rex
Date Posted: 24 August 2007 at 4:21pm
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Okay, so i've been looking on the IRD website about working for families, and for the calculator, it says "How much will your family earn before tax from 1 April 2007 to 31 March 2008?"
Now, say the baby was born in September, for example, I would have received full salary from April to September... so our total family income for the period would be to high. If I went back to work when the baby was 1 year old, again, I would work 6 months in the next tax year. So again our income would be too high... which implies if I want to have a baby and get WFF, I should have the baby in April so my year out coincides with the tax year. This seems crazy, and I must have gone wrong here! Can someone please tell me do they consider what you were earning prior to stopping work as part of your eligibility for WFF? I'm confused! |
Posted By: mum2paris
Date Posted: 24 August 2007 at 4:46pm
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it depends alot. Ie, if your bub was born just before the end of a tax year, i would guess they would take your prior earnings into account, as i do know when mike finished up work to begin study and effectively his income became nothing, they calculated it at what he would have earnt from the start of that tax year up until when he stopped, and just took it on that added to my income. once the new tax year started, i rung up and they changed his to 0 after that point. so if you had baby after the tax year started, at any point, they can look at it and calculate your actual earnings till that point and just take it from that added with whatever hubby's are. ------------- Janine and her 2 cool chicks, Paris & Ayja
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Posted By: busymum
Date Posted: 24 August 2007 at 5:18pm
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rhick, yes that is how it works, it's based on the full year's income. You estimate it in advance (if you want weekly/fortnightly payments) and then file an IR3 (tax return) at the end of the financial year and they make sure at that point that you got the right amount (with you or them paying more as necessary). So you have to be really onto it if you are stopping and starting work.
The accomodation supplement on the other hand is done on a week by week basis. So you will be eligible for that (if you will be, that is) as soon as you stop work. ------------- |
Posted By: emz
Date Posted: 24 August 2007 at 7:01pm
| Busymum - can you get the accommodation supplement paid at the end of the financial year with your other payment, or do you HAVE to take it weekly? That would be such a pain for us, as it would only be about $5 a week, but definitely over a year it would be worth getting a lump sum. |
Posted By: busymum
Date Posted: 24 August 2007 at 7:19pm
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HAS to be weekly, they won't back-pay; I agree it's a pain Get it paid into your savings! ------------- |