Is $150k enough to start a family?

I somewhat disagree, I think finances should definitely be a factor, knowledge won't pay the bills.

How much strain will a child put on you financially? How much will that strain effect you emotionally or effect your relationship? Can you still afford to pay the mortgage? Any medical expenses associated? Can you afford the extra expenses associated with raising a child?

I know two people who have had children and had to move back in with their parents because they couldn't afford to survive otherwise :(

The reason women’s earnings tend to stagnate around 30 is because they often stay at home to raise children though. Those years out of the workforce are what stop their income increasing, not just the fact that they’re women.

That maxing out at 30 might be related to going part time to look after children though...

Well with my 1% a year increase or whatever it is I get, i'm never going to catch up to her anyway. She already earns double what I do. And if she doesn't take years off to raise the child then her wages won't stagnate like some other mothers do. But I just want to plan for unforseen circumstances like injury, postpartum depression, etc that might mean she can't work and we end up on $50k between us. I know i'm just worrying but I think it's better to be prepared than to find yourself in the shit later on.

Well.. people recover after giving birth at different rates. Financially it only makes sense that the wife returns to work as soon as she feels READY to get back to work. If she wants to take care for their children and want to be a house wife, that's OK too but living on $50k will be very difficult.

Can you please show me these statistics?

Spending on children is so flexible. It can expand or contract a lot depending on the funds you have available, or what sort of life you want them to have. My husband was earning around $36k 16 years ago when our first was born. We lived cheaply and carefully. Now he earns multiples of that and the last few years we've spent over $10k per year on extra curriculars for our kids. That's something we would never have chosen to do all those years ago. It just would have been impossible. If we were still on that $36k we would make different choices, cheaper extra curriculars, etc.

You can afford kids on $50k. But the question is can you afford the life you want on $50k? And live where you want on $50k? What are your hard limits?

Babies don't cost a lot of money initially.... Nappies $11-16 a week, Formula $20-30 a week (breastfeeding isn't always possible or your wife may choose not to do this so it's best just to factor this cost in). Baby consumables such as Baby Panadol ($5), Dummies ($10 for 2), Bonjela ($9) and Baby Wipes ($2-5) will need to be purchased weekly/monthly (once they start teething that is).... This can add up quicker than you think so it's best to buy in bulk before the baby arrives if you think you can't budget for these items....

"Ohh you're babysitting today!"

"Oi cunt, mind your own business." There, comments avoided.

Would obviously have to fend off all the "Ohh you're babysitting today!" comments though lol

Best response I've come across is "I'm sorry, my wife died while giving birth". I think it's quite fair to be brutal to people who are that sexist.

I'm currently stay at home parent to our 12 month old in Sydney, while my wife is main breadwinner with similar salary to your partner. It's definitely affordable with some basic budgeting. In the first six months or so, especially if your partner is breastfeeding, baby isn't that expensive really. Main expenses were a pram, car seat and bassinet/cot. I think all up we might have laid out about two grand in preparation for baby arrival. Clothes can be very cheap from places like Kmart and Cotton On Kids, and to be honest, they don't really need much stuff. Nappies end up about 30-ish cents per nappy, so probably not more than 20 bucks a week even if you use nearly 10 a day.

We were definitely hesitant about our financial situation in the lead up because you simply don't know what you're in for, but so far it's been manageable.

Now that our daughter is a bit older and we've started daycare, that's the biggest weekly expense. Even with the government subsidy, we pay about $120 a week for two days of daycare. Sydney is a bit ridiculous so that might be cheaper in Perth.

I currently work part time and am the main at home parent and my wife went back to work part time after 8 months, and back to full time about a month ago.

Tbh, I'd encourage any dad who's in a feasible position to do so to spend some time as the stay at home parent. It's easier after the first six months I would say, but it's not only great bonding time, but it's a real lesson in how difficult and relentless it is being at home with a young kid. In many ways, work is much easier. My wife and I have both experienced both and it gives us better insight into the challenges we face on a daily basis, and we can better share the non work responsibilities too.

Sure. It massively depends on your individual needs and lifestyle though. But I’d recommend living on that amount now, save the other $50k, then you’ll have a buffer for when kids do come along. When they start school, they’ll need tech and clothes and money for education, if they go to uni, there may not be HELP anymore, they may have specific health issues, anything could happen. Just make sure you have at least some buffer and live within your means, kids have been brought up successfully on much less.

I get this a lot. I generally say "not babysitting, it's called parenting."

Usually makes them stop the laughing and shut the fuck up.

Would obviously have to fend off all the "Ohh you're babysitting today!" comments though lol

Man, I hate comments like that.

The other thing to consider is full-time parenting is really weary. It's great and all but after a while your whole life is about the kid(s). I had a mate who chose to be a stay at home Dad. He lasted 2 months and said he'd rather work for free than looking after his kids full-time. Parenting is great in moderate doses.

Yeah what the fuck, losing 2/3 of your household income is far more than a pinch.

Exactly. It's not how much you earn, but what you do with it.

Social factors and location come into play.

I grew up in a small coastal town and going to the local (public) high school was pretty much the only option and it was pretty good. It wasn't affluent, but it wasn't rough either - just very normal people. Very Home & Away lol. If you have a kid, you just send your kid to the local school without thinking about it. They can get a good education and because they are pretty much on an equal peg with everyone else, they have the belief that if you put in the effort you can move to the city for university and achieve whatever you want to. Or you could stay at home and live a comfortable life, working in a cafe/real estate/local firm with your family/freinds nearby.

I then worked and lived in the Eastern suburbs of Sydney and if I had a kid there (or even in Sydney at all) I wouldn't consider public school. Sydney is so much bigger and denser, and that includes the extremely rough dropkick types to offset the huge amount of highly ambitious kids. Plus I would feel guilty for "betraying" them because there is a big divide in the lifestyles and outlook on life between private and public school kids that I would be shutting them out from getting the best out of life and they would be able to witness that for themselves. If you can't beat the system, join them. So if I was living in Vaucluse, I would expect to spend at least $20-30k per child.

It's about social psychology as above. The blue chip firm I worked for, 90% of employees either private school types or people from regional towns. There were surprisingly extremely few public school students from the city (and even then they were mostly from the selective high schools)

I think she would go back to work after maternity leave

What does she think?

consider the worst case scenario and make sure we're covered

This is prudent. I know a few mothers who stayed off work longer than they had expected. Can't think of any that went back sooner than planned...

Would depend on her parental leave entitlements. For example, I'm on 185k, wife is on 190k, and she was able to do 9mo parental leave at half pay.

You will definitely be able to claim Centrelink... If you go to the Human Services website you can type in a dummy scenerio of having 1 child and $50k wage and it will show you what you are entitled to each fortnight .

A nice trial run would be to survive on your income and whatever additional from Centrelink would come from your partner’s income. Save the rest for 6 months as it serve as a bird’s nest.

After 6 months, 2 of you would have your conclusion and have a small backup fund.

After the baby is born, there are several options. You can get your parents to help take care of the kids and both of you work. If you find the 6 months trial acceptable, then you can continue working and she takes care of the child or you can quit working and she continue working, which works out slightly better without imposing on your parent with slightly better income.

I think it's more of a mindset issue than having any particular tips or tactics. When I think about the things that I value with regards to my kid, they include a place to live safely and comfortably, healthy food for her, and time to spend with her and my husband. None of those things cost very much. The rest is optional - expensive toys, new clothes they will grow out of in months, private lessons. Kids need a few basics but mainly attentive, loving parents.

My point is, money really isn't the most important thing here. You want kids, have them and find a way to support them. Better to have them younger then when you are older. Considering you have a combined income of 150k+ it's really a moot point, you can more than afford it.

Does it mean that you won't be able to go on your nice fancy OS holiday each year? Maybe.