Hav­ing a Baby

When Your Family Grows

When your family grows, it brings both joy and new challenges. It’s important to plan your household finances in advance, as expecting a child means changes in both income and expenses. Ideally, you should start thinking about your finances even before deciding to expand your family, as having a financial buffer can help bridge the gap that often occurs during parental leave.

Payments During Parental Leave

A lot changes when a baby arrives, and for some, it feels like the world has turned upside down. It’s not just expenses that increase—income is often lower during the first months after the baby’s arrival, as parental leave payments are usually not as high as the salary they replace.
On the Parental Leave Fund’s website, you can read more about the rules regarding parental leave. The total leave period is 12 months, divided equally between parents, with 6 weeks transferable to the other parent. If a parent is single, they are entitled to the full 12 months. Payments during parental leave amount to 80% of the parent’s salary, but never more than ISK 600,000 before tax.

Savings That Grow

One of the best gifts parents can give their child is savings that grow from birth. We offer a Future Account, an inflation-indexed deposit account, with funds available for withdrawal when the child turns 18. This account is ideal for regular savings, birthday money, and occasional gifts—helping teach children the value of saving from an early age.
In the Arion app, you can also set up a subscription to invest in funds for your child. Simply choose the amount that suits you—there’s no minimum and no fees for buying or selling. The app gives you a clear overview of your child’s assets at all times.

Pause Your Mortgage During Parental Leave

Those who expect difficulty meeting financial obligations during parental leave can apply to reduce mortgage payments with Arion Bank by up to half during the leave period. The remaining balance is then added to the loan principal. It’s important for expecting parents to sit down, review their finances, and seek advice on the next steps.

Insurance for What Matters Most

It’s wise to review your family’s insurance when a baby is on the way. Many choose to adjust their life and health insurance when they take on responsibility for a child’s life and well-being, ensuring financial stability in case of illness or the death of a parent. Vörður offers a wide range of family insurance options.
It’s also worth considering insurance for children against potential accidents and illnesses that could have lasting effects on their health and happiness.