Starting a family

Especially in the early stages, children need intensive care, and in many cases, one parent stays at home during the period after birth. However, the loss of one income poses financial challenges for many parents. This makes it all the more important to inform oneself early about potential public support and subsidies during this time. In Austria, expectant mothers are entitled to a maternity allowance (Wochengeld) and, during the first years of a child’s life, parents are entitled to childcare allowance (Kinderbetreuungsgeld) in various forms. This can at least partially compensate for lost income. Adding a child to the family also brings many new expenses, such as clothing, furniture and childcare costs.  A Family may also need more living space, which can significantly strain the household budget, especially if a loan needs to be taken out and repaid. Therefore, carefully planning the household budget is particularly important when starting a family. In the years dedicated to raising children, during which one parent works less and therefore earns less, the pension account credits of the higher-eraning parent can be shared with the other parent, so that the parent staying with the child receives additional pension entitlements for this period. In Austria, this is called voluntary pension splitting (freiwilliges Pensionssplitting) – an arrangement that can be applied for up until the tenth birthday of the youngest child. Adding a family member does not only bring new financial challenges in the here and now, it also means making preperations for the future. To do so, it is a good idea to think about savings and investment opportunities. It is particularly useful to review the household’s insurance cover (for example, life insurance and private supplementary health insurance). To successfully manage all the financial challenges, clear and open communication between the parents is essential, as well as a commitment from both to make provisions for the future in the interest of the child.