Toddler on fathers shoulders spending family time at the beach

Look after my family

Got your family finances sorted?
Take the five minute check today
 
 Yes, I constantly rework our budget
 I haven't thought about changes to our situation

Your Result:

Good work – you want to enjoy being a parent without being distracted by money problems.

Suggestions:

Even if you’ve been through it before it’s always a good idea to consider changes to your income and new family-related expenses.

If you’re growing your family make sure you also factor in the paid parental leave you or your partner may be eligible to receive. Contact the IRD to learn more about paid parental leave and if you’re eligible, add it to your budget and revisit it when it runs out.

Other situations that might impact your budget if your growing your family could include whether the primary caregiver will go back to work? And if so, when will they return and will it be full or part time? And how much will childcare cost once that happens?

Your result:

Budgets don’t take very long to conquer – you can get there.

It's not just yours or your partner's income that are about to change. 

Your expenses will increase. Big ticket items like setting up a nursery or upsizing your car. Small ticket consumables like nappies, bottles, formula and clothes.

As your child grows, so will the expenses. You'll need to consider the cost of childcare and education.

Suggestions:

Create a plan to tackle the big and small stuff and try the 'Sort my Finances' Financial Fitness Check for some help getting started with your budgeting.

Tools that can help:

Our 'Sort my Finances' Financial Fitness Check is a great starting point and has some handy resources - and the IRD is the best place to find information on paid parental leave.

Tools that can help:

Our budgeting template lists some of the expenses you might be in for as a parent and is a great starting point to identify some of the costs you might not have thought about.

 
 Yes, the children are on our insurance policies
 Not yet, do I need to?

Your Result:

You’re doing a great job of looking after your children if you’ve protected them with health insurance.

Suggestions:

If you have a trauma insurance policy you could also check if it has, or offers, free trauma insurance for your children. Another options is to take out a standalone children's trauma policy, which will typically cover more children-specific conditions.

Where trauma cover is in place, a lump sum payment is made if your child is diagnosed with or suffers from one of the conditions set out in the policy. Although it's a difficult topic, it's important to think about the time off you'll need to look after them if they fall seriously ill and how you’re going to cover any income gap. 

Your result:

There are a number of reasons why you'd consider health insurance for your children, including:

  1. Avoid public waiting and surgical lists.
  2. Protect your budget. 

Suggestions:

Most insurers will allow your baby to be added to health insurance policies without any medical questions asked, provided you apply to include your baby within 3 months from the day your baby was born (this is normally subject to the general, congenital and chronic conditions within your policy document - please read your policy for full details). Children can be added to your policy later but you may need to provide medical details in an application prior to the health Insurer considering the acceptance to include your baby.

One longer term advantage of adding them to your policy is that if your children graduate to their own policies, most Insurers will continue to insure your child's existing conditions.

 

Tools that can help:

Did you know that under the Ministry of Health’s current Well Child schedule, every child is entitled to eight free health checks. Five of which are done in the baby’s first 12 months.

These are usually done by a Plunket nurse or your local general practitioner (GP).

In addition to looking after your children's health, you can also contribute to their future with a life insurance policy and by specifying what happens when you're not around with an up to date Will.

Tools that can help:

Did you know that under the Ministry of Health’s current Well Child schedule, every child is entitled to eight free health checks. Five of which are done in the baby’s first 12 months.

These are usually done by a Plunket nurse or your local general practitioner (GP).

 
 Yes
 No

Your Result:

Nice. It might seem a fair way off now, but that time will come around surprisingly quickly.

Suggestions:

Your kids can benefit from an education fund in more ways than one – as it’s a great way to teach them about savings.

A survey of about 300 students aged 16 to 19 by Massey University, found students rated poorly in questions about budgeting, financial management, saving and investing1.

Teaching your children to be smarter with money could be just as valuable as the money you leave them. Use the education fund you've set up to teach them about the effect of compounding, budgeting, student loans and other financial principles.

1http://www.radionz.co.nz/news/national/301576/students-found-to-lack-basic-financial-skills

Your result:

School and university fees can be expensive - and it might be hard to find the money when your other bills are piling up.

But, if you start an education fund or savings plan for your child early, you can reduce the burden of taking on debt later on in life. 

Suggestions:

A small amount today could have big impact on your childrens’future tomorrow. Make a commitment, whatever you can afford, and start putting some money aside.

Watch it grow and then give an incredible gift –regardless of whether it’s used chasing a degree or chasing the sun.

Tools that can help:

Sorted.org.nz is an excellent source of information for you and a great website to introduce your children to when they get older.

Tools that can help:

There are plenty of options to set up an education fund. It's important you consider the pros and cons of the different options and how the money can be accessed when the time comes.

A financial adviser can help you decide.

Chat with an Adviser

If you’re ready to get some help for your financial Tomorrow, talk to a financial Adviser Today. They can help you plan for retirement, choose an investment strategy that’s right for you and help protect you and your family financially.

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The generic questions asked in this Financial Fitness Check aim to identify ways that you could improve your finances. The questions don’t take into account your financial knowledge or your actual financial situation.  

The results and suggestions given in the Financial Fitness Check are of a general nature and are not intended to constitute or replace financial or other professional advice.  To the extent that the information constitutes advice, it is class advice only.  You should consider whether the suggestions offered are appropriate for you before acting on them, and we recommend that you speak to a financial Adviser and read any relevant product information carefully.

For personal financial advice, we recommend you contact your Adviser or if you don't have an Adviser, contact us on 0800 267 263 and we can put you in touch with one. A disclosure statement is available from your Adviser, on request and free of charge.

While care has been taken to supply information in this article that is accurate, none of AMP Services (NZ) Limited (AMP) or any of its related companies gives any warranty of reliability or accuracy, or accepts any responsibility arising in any way including from any error or omission.

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