Commencing a family is a major lifestyle milestone. As such, it is important to ensure that you can enjoy this time with your new family and not worry about your finances. This article explains 5 financial tips to help you prepare for a new baby.
1. Practise Living on a Single Income
The recent passing of legislation for Paid Parental Leave is seen by many as a win for those thinking of starting a family. However, it is important to consider whether you are better off taking the Baby Bonus rather than the new Paid Parental Leave.
By taking paid parental leave, eligible Australians will forfeit the baby bonus, family tax benefit Part B and the dependent spouse offset. Industry modelling puts the average additional benefit at only $1000 to $2000 – and shows in some cases it could be to your detriment.
Having a baby can be expensive. This article highlights the various government family benefit payments available to ensure you receive all the payments and financial assistance you are entitled to.
1. Paid Parental Leave
Paid Parental Leave comes into effect 1 January 2011 and will pay either the employed mother or the father the equivalent of the minimum wage (about $570 a week) for 18 weeks as long as their income does not exceed $150,000 a year.
US stocks climbed broadly on Thursday following strong earnings from Caterpillar, 3M and United Parcel Service, while better-than-expected data on US existing-home sales and euro-zone economic activity also provided a boost.
The Dow Jones Industrial Average rose 201.77 points (1.99%) to 10,322.30, marking its biggest one-day gain since July 7 and its highest close since July 15. Boeing led the measure's gains with a jump of $3.42 (5.4%) to $66.60, after European rival aircraft manufacturer Airbus raised its order intake target for 2010.
US stocks tumbled on Wednesday despite strong earnings reports from Morgan Stanley, Wells Fargo and Apple, as investors were disappointed with Federal Reserve Chairman Ben Bernanke's signal that the central bank is not planning further stimulus in the near term.
The Dow Jones Industrial Average declined 109.43 points (1.07%) to 10,120.53, its first drop in three sessions. While the drop was broad, the Dow's financial components got hit the hardest. JP Morgan Chase fell $1.21 (3.1%) to $38.42 and Bank of America declined 41 cents (3%) to $13.36.
Quarterly reports from International Business Machines, Texas Instruments and Goldman Sachs sent stocks tumbling early on concerns over slowing revenues, but a late rally erased the losses as investors looked expectantly to Federal Reserve guidance and upcoming earnings.
US stocks notched modest gains on Monday as investors sifted through mixed earnings and a weak index of housing sentiment to pin their hopes on strong quarterly reports later this week.
US stocks closed slightly lower on Thursday, snapping a seven-day winning streak, despite a late-session boost from news about a halt in the BP oil leak in the Gulf of Mexico and expectations of a settlement between Goldman Sachs and regulators.
Blue-chip stocks declined as disappointing economic data and the passage of a major financial-overhaul bill weighed.
Inflationary expectations declined slightly in July, according to an industry survey.
The Melbourne Institute Survey of Consumer Inflationary Expectations median expected inflation rate in July declined to 3.3% from 3.4% in June. In addition, the proportion of consumers expecting inflation to be within the Reserve Bank of Australia's targeted 2% to 3% inflation band rose to 19.1% in July from 17.5% in June.
A strong earnings report from Intel boosted US blue-chip stocks on Wednesday, extending the Dow Jones Industrial Average's winning streak to seven sessions.
Still, the Dow's gain was slim and the broader Standard & Poor's 500 index snapped a six-day streak as optimism over the pace of corporate earnings gave way to a chilly economic forecast from the Federal Reserve.