Kids Ain't Cheap: How to Plan Financially for Parenthood and Your Family's Future

by Ana Kresina

There are so many delightful moments in parenthood. That toothy grin. The big wet kisses. Or even when they whisper 'I love you' in your ear for the first time. Those moments are pure magic. But kids are also exhausting. The poo explosions, the sleepless nights, the defiant toddler years. If you’ re partnered, it can be a strain on your relationship. It can also be financially overwhelming. Money is one of the leading causes of stress and divorce, and it’ s even more crucial for single parents or carers to be aware of as the sole breadwinner. Kids Ain’ t Cheap is an easy-to-understand book that helps you prepare financially before you become a parent for the first (or second, or third) time. It shows you how to mitigate risk and reduce financial stress. From pre-pregnancy financial planning to the expensive childcare years and beyond, this book gives you the skills to run cost estimates, understand your loss of earning potential, get your finances in order, start investing for your family and set up your children for their own financial success. More than anything, it gives you the freedom to focus on what is most important to your family.

Genres: Parenting, Nonfiction, Finance

192 pages, Paperback

Published February 29, 2024

Reviews

[christine · Rating 5 out of 5]

i'm still on the fence about having kids, but want to be well-informed either way. i found this book clear and insightful for life and finances regardless of if i choose to become a parent.

[Sandra · Rating 5 out of 5]

Full of up to date information, ideas and thought provoking points for those planning or navigating the early stages of parenthood.

Planning for parental leave, superannuation, early childhood education and care costs and much, much more …

[Ana · Rating 5 out of 5]

I realized there were so many books about planning for pregnancy and raising kids, but none on how to plan financially for parnethood. Which is why I wrote this book, hoping I can help other parents navigate this financially impactful time.

[Jeanette · Rating 3 out of 5]

The author’s ABC article promoting the book came up for me recently and I was curious, so I reserved the last remaining hardcopy at my local library and dug in.

Most interesting for me were the sections on parental leave and early childhood education and care. In particular the nuances of existing policy settings and how that had impacted different folks’ ability to access the Commonwealth Parental Leave Pay scheme and Child Care Subsidy. I also quite enjoyed the inclusion of case studies, with some more insightful than others, notably where people reflected on what mattered to them most in their parental journey in relation to finances.

I skimmed quickly over the other sections since the information around investing was largely introductory. A useful inclusion was a 101 on various investment vehicles to consider should parents be interested in investing on behalf of/for their children.

Overall a useful, point in time overview to support family planning from a financial perspective. I also appreciated the author acknowledging the limitations of heteronormative data and where available and relevant, including some data relating to queer folks as well.

[Taylor Ball · Rating 3 out of 5]

Okay hear me out. I saw this book in Australia and thought “i haven’t heard of this finance book before” (there’s a reason) and then “while kids are many years away, I should probably know how to prepare for them financially.”

This was a step too far for my love of personal finance books.

This book was a deep dive into the Australian financial system and all the supports available to expecting and new parents. I learned all about the Australian retirement system, “super”, the challenges of accessing early childhood education in Aussie, the unique elements of the Australian stock exchange (or ‘share exchange’ as they call it).

You know what the worst part was? I actually found it quite interesting. It was cool to compare our financial system with another and to learn about the unique challenges affecting Aussies - like the cost of living in Sydney vs Brisbane and the cost of private, public or catholic primary schools.

Would I recommend this book? No. Stay clear - it was kinda confusing, even the shared financial elements were over complicated. But I did enjoy the interviews at the end of every chapter with Aussie parents.

5.4 hours on kobo

[Tiarne Jones · Rating 4 out of 5]

Overall, I thought the book had some good tips and reminders, and covered a broad range of topics in enough depth to be helpful but not too overwhelming. Especially in the investing section, it gives you some basics to start with, and an idea of where to investigate from there.

The sections in Centrelink/government paid parental leave gave a great overview without being too overwhelming.

I did find the early childcare education section, especially the child care subsidy, very helpful as it can be super confusing.

I also really enjoyed the stats and the personal stories at the end of each chapter made it feel a bit more relatable.

I only wish I read the book a bit earlier, either pre pregnancy or early pregnancy to financially prepare a bit more.

[Anomilie · Rating 3 out of 5]

Some helpful information to get a good overview of a variety of topics related to money matters and children. I wasn't very keen on the myriad of statistics and I didn't find that the personal stories contribute much for me. Also a lot of the topics I wanted to get a better understanding of were very superficial and ended on "look at the ATO website" or "talk to a financial advisor". Still contained some useful points to get a good overview, but I ended up skipping large sections because it didn't contribute to gaining more knowledge.

[Keesh · Rating 5 out of 5]

For anyone trying to find a guidebook to navigate parenthood financially in Australia, it’s worth a read. Especially for those who are new to the whole childcare system and what to consider if you or your partner is going on parental leave and how that affects your super.
Plus the case studies are fantastic as everyone has a different experience and story.

[Emma Edwards · Rating 5 out of 5]

I've not seen another finance book like this one available in Australia. Considering having children in the modern day is daunting and overwhelming, particularly in terms of the financial aspect, and Ana breaks down all the factors you need to consider to go into parenthood informed and empowered.

[Chai Shean · Rating 4 out of 5]

Practical, great facts and mindsets to consider when starting your parenting journey.

[Victoria · Rating 5 out of 5]

A must read for new parents or on-the-journey-to-be parents on how to be financially prepared for the new life kids will throw at you.

[Tom.Godfrey · Rating 3 out of 5]

Great overall. I really liked the section on ECEC, general planning for childhood and the human anecdotes.

A lot of the material was a little commonsense to me, like general investing philosophy, and some poor references, especially cost of public education.

____________

Random personal reflections in no particular order:

4 children is likely 7 years full time child rearing, at least.

Financially would do equity contribution to expenses during child rearing, with some kind of asset split in the case of divorce decided prior to children (presumably via BFA).

Sick days from work to care from children can be a big expense. Does WFH, family ameliorate? What is the market cost of a nanny?

Futurity estimated public school costs around 6,500 per year in 2023, including things like excursions. That’s 84,000 for all 13 years. Absolute looney tunes show that estimate. More like $1,000 per year after speaking to multiple parents, including all the trimmings like textbooks.

Maternity leave is 24 weeks Government subsidy $950 or minimum wage + APS 18 weeks full pay.

ECEC costs, and the relevant subsidy, are incredibly important to understand if middle income. With childcare being $130-50 per day before subsidies, the amount can add up with multiple children. Chapter 5 of the book covers in detail and so far had the most value in the book.

[Kate Campbell · Rating 5 out of 5]

What a fantastic addition to the personal finance space in Australia! Ana has done a fantastic job uncovering all the details people need to know when it comes to money and kids, and kickstarted a much needed conversation.