So I have learned this week that your borrowing power lowers on average $170 per week per dependant that you have. We bought a house last year and have one dependant (4yBoy) already, but we were planning to have a baby soonish. This has thrown a wrench in those plans because I want to make sure our financial future is secure but I also want a largish family.
Income wise I’m full time 55k and my partner is casual 45k-ish, and with how much we spend on our child it’s just the cheap Kmart clothes when he goes up a size, $10 a fortnight night time nappies, $65 a week daycare, and apple juice when we order out (we both eat about half a normal meal so we share an adult portion).
Any families out there in similar situations that can tell me how having kids has affected your family financially, not with what you spend but with how financial institutions assess you?
3 Replies
In what way are you wanting to make your financial future secure? There are many ways of achieving that which don’t require borrowing money if you already own your home - pay your home off, boost your super, invest in shares, build your savings... You may only spend that amount on your child at present but as he gets older that amount is going to increase - banks will assess that as a liability
Our plans for the future involves a pensioner village where power is supplemented from multiple investment properties, a few charitable businesses which are supplemented with profitable businesses, and a few other things. It’s a long way away but I want to put us in the best position while we’re still young so that our goals can be achieved later on and I worry how this will affect it.
I have 3 kids(14,13and 8) I'm a sham and my partner makes about 65 k a year. We have had no problems getting loans we have just borrowed 100K for home renovations with no issue.