Personal Finance Tips for 2013

2013 Budget: How To Financially Prepare Yourself

Information verified correct on February 23rd, 2017

With the baby bonus and family funds on the chopping block, find out what the budget has in store for you.

The unveiling of the 2013 budget has brought with it many changes: $3.3 billion to be set aside from 2014 -15 for the National Disability Insurance Scheme, $10 billion to be rolled out to schools as part of the Gonski reforms and unfortunately for some, the abolishment of the $5000 baby bonus.

‘The elimination of the baby bonus has caused a bit of a stir in the media in the past couple of weeks’ says Rob Dawson, Financial Advisor at PSK Financial Services and author of Insight Investment and Retirement Strategies. ‘Frankly it’s a bit of a sideshow. Some middle class families (about 28,000) will lose approx $5,000 of the current maximum baby bonus as it will be means tested’.

Federal budget 2013

‘The Baby Bonus either way you look at it is not much of a bonus compared to the true long term cost of raising a child’ explains Mr. Dawson. According to the latest figures from the University of Canberra, ‘it is estimated that to raise 2 children from babies to about 23 years of age costs a total of $800,000.That’s about $440,000 for the first child and $360,000 for the second. This works out to be on average about $17,000 per child per year. The figure has risen dramatically since 2007 when the estimate was $537,000 for 2 kids to age 23. The figures vary depending on household income and ability to pay. These figures are for mainstream middle income households’.

Nevertheless, increases to the Family Tax Benefit Part A mean those who have a household earning of $94,316 a year will still receive $2000 for their first child and $1000 for each subsequent child.

It is probably better to be cut and the spare funds channelled to other areas of Government spending.

Rob Dawson

If you stand to lose out on the baby bonus altogether or receive a lower payment as a result of the budget, now is the time to be more financially aware than ever. ‘It’s critical that would-be parents are aware of the real long term cost of raising children and factor it into their long term budgeting,’ Mr. Dawson explains. You can still financially prepare to have a child with some smart financial thinking.

Finance tips to prepare yourself for having a baby

Reduce your expenses

You're going to have another family member soon enough, so it makes sense that you should try to eliminate any spending which isn't important to prepare for the additional costs that come with this. Some quick ways to start saving now include:

  • Quitting smoking
  • Limiting the number of times you go out for meals or drinks each week
  • Taking public transport or walking to save on petrol and car maintenance
  • Having a good look at your credit cards, home loan and savings accounts to ensure you're getting the most out of them
  • Do the same with your utilities and other recurring expenses such as gym memberships.

Try to increase your income before you stop working

Knowing that you'll need to stop working in the near future gives you time to plan ahead. Ask for a pay rise, seek additional work or open a small internet business to lift your income before your child arrives.

Start a budget

Put a household budget together and find out where your income is going each week and know how this will change once you can no longer work. Don't forget to budget for the specific baby expenses you'll have to factor in such as doctors, ultrasounds and any learning materials you'll have to purchase.

Find our budget calculator here

Open a savings account for your baby

While many advocate against going overboard when it comes to thinking too far in advance about the expenses a child brings, it's still worth opening up a separate account for the initial costs a baby brings like nappies, clothes, food, toys, seats and prams.

Information on opening a savings account

Make your savings an automatic process

Setting up an automatic savings plan which transfers money from your transaction account to your savings account will make it easier to keep your savings growing consistently. You can even employ the savings 'bucket' method, where you have a sub-account for each savings goal you have. This makes it easier to organise your funds and see the progress you're making.

Practice safe spending

Overspending and emotional purchases are a bad combination even without expecting a child. Using the budget you hopefully set up in the first tip you can find out how much you have to spend on entertainment and other areas. If you know your limit then it's easier to stay within it.

You still have up until March 2014 to make use of the baby bonus, but even once it draws to a close it's important to know there are still ways to have your finances prepared and ready to go once the young one arrives.

Compare accounts below

Rates accurate as at: February 23rd, 2017 Learn about our information service
$
$
months
Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit Interest Earned
ING DIRECT Savings Maximiser
Ongoing, variable 3.00% p.a. when you link to an ING Orange Everyday bank account and deposit $1,000+ each month. Available on balances up to $100,000.
3.00% 1.60% 1.40% $0 $0 / $0 Open More
Bankwest Hero Saver
Ongoing, variable 2.65% p.a. rate when you deposit at least $200 each month and make no withdrawals. Available on balances up to $250,000.
2.65% 0.01% 2.64% $0 $0 / $0 Open More
Bank Australia Bonus Saver Account
Ongoing, variable 2.60% p.a. when you deposit at least $100 and make no withdrawals. Available on the entire balance.
2.60% 0.15% 2.45% $0 $0 / $1 Open More
ME Online Savings Account
Ongoing, variable 3.05% p.a. rate when you link to a ME Everyday Transaction account and make a weekly purchase with your Debit MasterCard using tap & go. Available on balances up to $250,000.
3.05% 1.30% 1.75% $0 $0 / $0 Open More
Bank Australia mySaver Account
Ongoing, variable 2.60% p.a. when you deposit $10+ each month. Available on the entire balance and to customers under the age of 25.
2.60% 0.15% 2.45% $0 $0 / $10 Open More
ANZ Progress Saver
Ongoing, variable 1.91% p.a. when you link to any Australian everyday bank account and deposit $10+ each month. Available on the entire balance.
1.91% 0.01% 1.90% $0 $10 / $10 Open More
Bank Australia Online Saver Account
Ongoing, variable rate up to 1.65% p.a. when you link to a Bank Australia Everyday Access or Pension Access or a mortgage offset account. Available on balances more than $5,000.
1.65% 1.65% 0.00% $0 $150,000 / $5,000 Open More
Westpac eSaver
Introductory rate of 2.51% p.a. for 5 months, reverting to a rate of 1.05% p.a. Available on the entire balance.
2.51% 1.05% 1.46% $0 $0 / $0 Open More
ING DIRECT Savings Accelerator
Ongoing, variable 2.35% p.a. applies on balances $150,000 and over.
2.35% 2.35% 0.00% $0 $0 / $0 Open More
BankSA Maxi Saver
Introductory rate of 2.75% p.a. for 3 months, reverting to a rate of 1.00% p.a. Available on the entire balance.
2.75% 1.00% 1.75% $0 $1 / $1 Open More
ANZ Online Saver
Introductory rate of 2.65% p.a. for 3 months, reverting to 1.25% p.a. Available on the entire balance.
2.65% 1.25% 1.40% $0 $0 / $0 Open More
Bank of Melbourne Maxi Saver
Introductory rate of 2.75% p.a. for 3 months, reverting to 1.00% p.a. Available on the entire balance.
2.75% 1.00% 1.75% $0 $1 / $1 Open More
BankSA Incentive Saver Account
Ongoing, variable 1.75% p.a. when you make at least one deposit each month and no withdrawals. Available on the entire balance.
1.75% 0.01% 1.74% $0 $0 / $0 Open More
Bank of Melbourne Incentive Saver
Ongoing, variable 1.75% p.a. when you make at least one deposit and no withdrawals each month. Available on the entire balance.
1.75% 0.01% 1.74% $0 $1 / $1 Open More
Westpac Reward Saver
Ongoing, variable 1.75% p.a. when you deposit at least $50 and make no withdrawals each month. Available on the entire balance.
1.75% 0.01% 1.74% $0 $0 / $0 Open More
$
Monthly Account Fee Debit Card Access ATM Withdrawal Fee Fee Free Deposit p.m. Details
NAB Classic Banking
$0 monthly account fees.
Tap and pay with your NAB Visa Debit card, NAB Pay for Android or NAB PayTag for iPhone.
Visa $0 $0 $0 account keeping fees with no deposit conditions. Unlimited free withdrawals at NAB and rediATMs. Open More
St.George Complete Freedom Account
10% Cash back for online gaming purchases.
Waived account keeping fees when minimum deposit is met with no minimum balance.
Visa $0 $2,000 $0 account keeping fees if you deposit at least $2,000 per month. Otherwise, a $5 fee applies. Unlimited free withdrawals at St.George, Westpac and BankSA ATMs. Open More
ING DIRECT Orange Everyday Account
$75 cash bonus + Apple Pay available
Get a competitive ongoing variable rate when linked with a Savings Maximiser.
Visa $0 $1,000 $0 account keeping fees. Unlimited free withdrawals at all Australian ATMs if you deposit at least $1,000 per month. Open More
Bankwest Easy Transaction Account
Pay no ATM fees at over 10,000 ATMs in Australia (conditions apply).
Mastercard $0 $2,000 $0 account keeping fees if you deposit at least $2,000 per month. Otherwise, a $6 monthly fee applies. Unlimited free withdrawals at CommBank, NAB, ANZ, Westpac, St.George, BoM and BankSA ATMs. Open More
Bankwest Qantas Transaction Account
Earn Qantas Points on eligible purchases and on your account balance.
Conditions apply.
Mastercard $0 $2,000 $0 account keeping fees when you deposit at least $2,000 into your account each month. Otherwise, a $6 monthly fee applies. Unlimited Free withdrawals at Bankwest and CommBank ATMs in Australia. Open More
ANZ Access Advantage
Apple Pay, Android Pay and ANZ Mobile Pay. Take advantage of Apple Pay by linking your ANZ Visa Debit card to an eligible iPhone and seamlessly pay for purchases with your phone.
Visa $0 $2,000 $0 account keeping fees if you deposit at least $2,000 per month. Otherwise, a $5 monthly fee applies. Unlimited free withdrawals at ANZ ATMs. Open More
Westpac Choice
$0 ATM withdrawal fee at 50,000+ ATMs globally.
Via Westpac's Global ATM Alliance. Get Cash without your debit card (conditions apply).
Mastercard $0 $2,000 $0 account keeping fees if you deposit at least $2,000 per month. Otherwise, a $5 monthly fee applies. Unlimited free withdrawals at St.George, Westpac, BoM and BankSA ATMs. Open More
BankSA Complete Freedom Account
Open one in less than 5 minutes with Cardless Cash available.
Visa $0 $2,000 $0 account keeping fees if you deposit at least $2,000 per month. Otherwise, a $5 monthly fee applies. Unlimited free withdrawals at BankSA, St.George, Westpac and Bank of Melbourne ATMs. Open More
BankSA Express Freedom Account
Get Cardless Cash, free SMS and email alerts.
Visa $0 $1,000 Avoid ATM fees when using BankSA, St.George, Bank of Melbourne and Westpac ATMs. Avoid the monthly fee if you deposit $1000 into this account each month. Open More
Bank of Melbourne Complete Freedom
Get Cardless cash and shop securely with your Visa debit card. Customise SMS and email alerts.
Visa $0 $2,000 $0 account keeping fees if you deposit at least $2,000 per month. Otherwise, a $5 monthly fee applies. Unlimited free withdrawals at Melbourne, St.George, Westpac and BankSA ATMs. Open More
Bank of Melbourne Express Freedom
Get Cardless Cash and PAYG branch and cheque services.
Visa $0 $1,000 $0 account keeping fees if you deposit at least $1,000 per month. Otherwise, a $3 monthly fee applies. Unlimited free withdrawals at BankSA, St.George, Westpac and Bank of Melbourne ATMs. Open More
$
3 Mths p.a. 4 Mths p.a. 6 Mths p.a. 12 Mths p.a. 24 Mths p.a. 36 Mths p.a. 48 Mths p.a. 60 Mths p.a. Min Deposit Interest Earned
Citibank Term Deposit ($75,000)
Citibank Term Deposit ($75,000)
2.50% 2.50% 2.80% 2.35% 2.35% 2.35% 2.35% 2.35% $75,000 Open More
Bankwest Online Term Deposit
Bankwest Online Term Deposit
2.45% 2.20% 2.65% 2.70% 2.60% 2.60% 2.65% 2.65% $1,000 Open More
St.George Term Deposit
St.George Term Deposit
2.20% 2.00% 2.30% 2.60% 3.10% 3.20% 2.80% 2.95% $1,000 Open More
BankSA Term Deposit
BankSA Term Deposit
2.20% 2.00% 2.30% 2.60% 3.10% 3.20% 2.80% 2.95% $1,000 Open More
Bank of Melbourne Term Deposit
Bank of Melbourne Term Deposit
2.20% 2.00% 2.30% 2.60% 3.10% 3.20% 2.80% 2.95% $1,000 Open More
Firstmac Term Deposit
Firstmac Term Deposit
2.75% - 2.75% 2.85% 2.75% - - - $5,000 Open More
ME Term Deposit
ME Term Deposit
2.50% 2.50% 2.75% 2.90% 3.00% 3.00% 3.00% 3.00% $1,000 Open More
Bank Australia Term Deposit ($5000)
Bank Australia Term Deposit ($5000)
2.40% 2.40% 2.50% 2.65% 2.85% 2.95% - - $5,000 Open More
Rates are displayed for the terms and minimum deposit sizes listed in the table above. The rate you receive could vary depending on your deposit size and interest payment frequency.

Marc Terrano

A passionate publisher who loves to tell a story. Learning and teaching personal finance is his main lot at finder.com.au. Talk to him to find out more about home loans.

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Savings Account Offers

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ING DIRECT Savings Maximiser

Maximum Variable Rate

3.00

Standard Variable Rate

1.60
ME Online Savings Account

Maximum Variable Rate

3.05

Standard Variable Rate

1.30
Bankwest Hero Saver

Maximum Variable Rate

2.65

Standard Variable Rate

0.01
ANZ Progress Saver

Maximum Variable Rate

1.91

Standard Variable Rate

0.01

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