Need to talk? Call 1800 882 436.
It's a free call with a maternal child health nurse. *call charges may apply from your mobile

Is it an emergency? Dial 000
If you need urgent medical help, call triple zero immediately.

beginning of content

Creating a family budget

6-minute read

Key facts

  • Creating a family budget can help you understand where your money is going and find better ways to manage your income.
  • After working out your budget you will be able to see how much money you can afford to save
  • Depending on your circumstances, you may be able to get financial support such as family tax benefits, dental benefits, parental leave or child support.
  • Having an emergency fund can be a very important step in avoiding significant stress if you experience a loss of income or need to cover urgent and unexpected expenses.

What are the benefits of creating a family budget?

A family budget is a plan to help you see where your money is going.

By examining how much money you have coming in (income) and going out (expenses), you'll be able to see if you are spending more than you can afford. This could help you make changes that will let you save for the future and be better prepared for unexpected emergencies.

A budget can help you balance your spending and saving, and take control of your finances. Creating a budget can help a range of different people, in different family circumstances, including if you're a single parent, if you're living off one or 2 incomes, or relying on Centrelink benefits.

Creating a budget can help you understand your financial goals and make it easier to set your spending limits.

How do I get a budget started?

First, work out exactly how much money you have coming in and going out. You will need bank and credit card statements, pay slips, benefit statements, bills, and anything else that records how you currently get income and use your money.

To get you started, you could download an online planner like ASIC's Moneysmart Budget Planner. Many banks also offer online budget planners for their customers to use.

What should I include in a budget?

To work out your family budget you should think about your entire income, including:

  • take-home pay (after tax income)
  • overtime
  • bonuses
  • income from savings or investments
  • Centrelink benefits
  • any other money you have coming in

Then work out how much you spend, including:

  • Spending on your home: Mortgage or rent, gas, electricity, water, rates, maintenance, internet, phones and pay TV.
  • Groceries: Everything you spend at the supermarket or other food shops.
  • Insurance and financial payments: Car, home and contents, life, income protection, pet and car insurance. Also include payments on your car loan, any other loans or debts, credit card interest, and charity donations.
  • Medical costs: Medicines, doctors' bills, pharmacy costs, glasses and health fund premiums, as well as veterinary bills. If you are having a baby, think about extra costs like private hospital, specialist fees and medical imaging.
  • Personal costs: Everything you spend on personal care and grooming, clothing, hobbies, computers, the gym and education.
  • Entertainment: Include money for eating out, going to the movies, holidays, buying gifts, books and magazines, and alcohol.
  • Transport: Train, bus or ferry, petrol, tolls, car registration, driver's licence, fines, car repairs.
  • Children: Baby products, clothes (including school uniforms and other school costs), babysitting, childcare, preschool, children's activities.

It is also a good idea to look at the entire year because some things, like gas and electricity, cost more at different times throughout the year.

How do I manage my budget?

Once you know how much you spend on each item, you can work out how much money you need each week. It is a good idea to build a 'buffer' into the budget, so you have money available for an emergency.

If you spend more than you earn, it will now be easier for you to find ways to reduce your spending. If you are spending less than you earn, you can start thinking about a savings plan.

Sticking to a family budget isn't always easy. If you work out where you can make savings, you will be in a much better position to set long term goals for your family. This can include things you want, and not only things you need.

Resources and support

If you have young children, you may be eligible for a range of government subsidies and benefits including:

Services Australia can help you access financial support, for example, any benefits you might be entitled to.

Speak to your bank about opening a fee-free bank account for savings.

Consider using a free Commonwealth financial counsellor, or speak to a private financial advisor.

The ASIC Moneysmart website has plenty of tips on managing your money, and you can go to the BudgetPlanner page to keep track of your spending.

If you are a teenage parent or live in a rural area, you can contact Services Australia to help you get financial support including any benefits you are entitled to.

Do you need urgent help with money? Read the ASIC Moneysmart guide for tip on how to get emergency financial relief and other support.

Services Australia also has a free Financial Information Service to help you make decisions about your money.

Learn more here about the development and quality assurance of healthdirect content.

Last reviewed: June 2023


Back To Top

Need more information?

Family budget & money management tips | Raising Children Network

Basic money management is about meeting family expenses, setting money aside for emergencies, and saving. A family budget helps you spend and save wisely.

Read more on raisingchildren.net.au website

NDIS plans: when circumstances change | Raising Children Network

If your child has an NDIS plan and your circumstances change, you must let the NDIA know. The NDIA will tell you whether the plan needs to be reviewed.

Read more on raisingchildren.net.au website

Christmas can be stressful - Better Health Channel

The expense of gifts and food, the pressure of shopping, and the expectations of the season can make Christmas an extremely stressful time.

Read more on Better Health Channel website

Your child’s NDIS support budgets | Raising Children Network

NDIS plans have three budgets – core supports, capacity building supports and capital supports. Budget funding must help your child reach their NDIS goals.

Read more on raisingchildren.net.au website

Meal planning | Eat For Health

Thinking ahead and planning meals and snacks for yourself or your family based on the Australian Dietary Guidelines and Australian Guide to Healthy Eating is the key to healthy eating and also the best way to lose weight. Planning helps manage the budget, makes shopping easier and maximises foods that are high in nutrients, but lower in kilojoules.

Read more on NHMRC – National Health and Medical Research Council website

Parenting | Department of Social Services, Australian Government

Improving the lifetime wellbeing of people and families in Australia.

Read more on Department of Social Services website

Childhood Cancer Support Services | Redkite

In hospital or at home, Redkite is here to provide practical, financial and emotional support for families facing childhood cancer.

Read more on Redkite website

Preparing for Your Baby | Tresillian

Being pregnant is a time to prepare for your baby’s arrival. Read our top tips for preparing for a newborn, including support networks, nursery set-up, and more.

Read more on Tresillian website

Support options for single parents - ReachOut Parents

No one needs to do it alone. Here are some support options that can help you and your child.

Read more on ReachOut.com website

Parenting SA - Being a parent - Parent Easy Guide

Parenting SA is a South Australian government program, providing the community with quality information on raising children, including free Parent Easy Guides.

Read more on SA Health website

Call us and speak to a Maternal Child Health Nurse for personal advice and guidance.

Need further advice or guidance from our maternal child health nurses?

Healthdirect Australia acknowledges the Traditional Owners of Country throughout Australia and their continuing connection to land, sea and community. We pay our respects to the Traditional Owners and to Elders both past and present.

This information is for your general information and use only and is not intended to be used as medical advice and should not be used to diagnose, treat, cure or prevent any medical condition, nor should it be used for therapeutic purposes.

The information is not a substitute for independent professional advice and should not be used as an alternative to professional health care. If you have a particular medical problem, please consult a healthcare professional.

Except as permitted under the Copyright Act 1968, this publication or any part of it may not be reproduced, altered, adapted, stored and/or distributed in any form or by any means without the prior written permission of Healthdirect Australia.