We love being grandparents. Not only do you get to spend a lot of time with the grandkids but also with their friends and parents at things like baby showers, birthday parties and Christenings.

We’re back surrounded by babies… and their financially stressed parents.

Australia is in a baby boom. Forget immigration being the major boost to our population growth, the reality is it’s been our home grown procreation.

According to the Bureau of Statistics there were 303,500 babies born in the year to March, the most since records began. This was 3.1 per cent, or nearly 10,000, more babies than the previous year.

By comparison, in 2006 this figure was closer to 270,000.

Low unemployment, rising incomes, greater prosperity and better maternity leave seems to have been the trigger. Plus there’s also the generous (compared with other generations) Government assistance.

But from our discussions with new parents, this greater prosperity and financial assistance doesn’t seem to be easing the financial burden of having a new child.

We’d be accused of being old and grumpy if we said one problem is that it seems the lifestyle expectations of today’s new parents are a lot higher than our generation. So we won’t.

We talk to these new parents about better financial planning for a new family and the need to follow a simple, but effective, strategy.

During the waiting period much excitement, focus and attention is placed on choosing names, the perfect pram, a nursery colour scheme, baby furniture, and a myriad of clothes and fluffy toys for the new arrival.

Too often the planning stops there, and little thought is given to the family finances. This is a major problem. For at least a few months after the birth most couples go from two incomes to one, which then has to stretch to support three.

Start with a pre-baby budget. This isn’t a list of things you should buy and how much you should spend – this is a financial plan for the year before baby.

As living costs rise, it seems more and more couples are planning ahead and choosing when they would like to have a baby. At least a year before you want to have a baby start pretending you’re already on one wage.

Some couples may already do this, saving or investing their second income, but many don’t. The lure of the good life is too strong. You know you’re in trouble if you get to the end of each pay period on two wages and there’s nothing left.

I know a lot of pregnancies aren’t planned. But even couples caught by surprise still have nine-months to get into financial shape.

You need to go into baby training. Not Lamaze – Le budget!

Sit down with your partner, get a piece of paper or open an excel spreadsheet and list your income and your expenses. Be open and frank with each other.

Can one income cover all your expenses? If not, work out where you can cut back. This is the time to decide whether cartons of beer or regular pedicures will still fit into the equation. Don’t leave this discussion to after baby has arrived.

If you’re surprised at how tough it is at first to live on one wage, this will give you an idea of how much harder it will be when there is a third little person to consider.

If you keep practicing for a year or so before you have a baby two things should happen; you will be ready to tackle parenthood on a single wage and you will have saved a nice little nest egg.

Your savings from baby training could also be used to cover your initial set up costs, like baby furniture and transportation.

Not all couples will be able to balance their budget on one income, no matter how many expenses they cut back on. Luckily there’s government support for those that need it.

The single biggest financial help to new parents is the Baby Bonus. It’s a $5,294 government payment to help cover the costs of a new baby. The money is paid in fortnightly installments over six-months. Couples earning less than $75,000 in the six-months following the birth qualify for this payment.

Family Tax Benefit A aims to help families with the cost of raising children. Depending on how much you earn, you can get up to $151 a fortnight for each baby.

Family Tax Benefit B is an extra payment for families with just one main income, including single parents and families with one main breadwinner. To qualify the primary income earner must make less than $150,000 a year.

There’s also the 18-week Federally funded maternity leave scheme at the minimum weekly wage of $570 is the primary income is, again, under $150,000 a year.