Nifty: Taking the parent plunge:
Five financial tips you must know
before starting a family
nifty_Taking the parent plunge: Five financial tips you must know before starting a family
Starting a family doesn’t have to be scary. Indeed, being overjoyed with the laughter of awesome kids, and filling up your days with proud-parent moments and a ridiculous amount fun-filled photos (where kids are forced to smile when all they want to do is go and play, Mom) – is some of the most unforgettable and brilliant memories you will ever collect, and should never be tainted with a fear of family finances.
Admittedly though, starting a family can be financially daunting, and can give any young parent sleepless nights. There is no two ways about it: The financial implications of starting a family can be so overwhelming that many of young parents worry that they might not cope, and so some even contemplate putting it off.
But hold on. Take a breath! Don’t put your life on hold. Here at nifty, the most responsible place to get loans online, we’ve been helping young families get started for years – and 2018, we assure you, will be no different. Your family, like the countless that have been overwhelmed in the past and got through it, will work through this difficult period too. As Bob Marley always says, everything little thing gonna be alright.
So, here to give you some family-starting guidance, are 5 financial tips to consider when taking the parent plunge.
Get those schools (and school fees) in order:
So, you’ve taken the plunge: You’re starting a family and you’re both excited and nervous. So, why not ease the latter with some good ol’ solid financial prep? As you may know already, this is the time to start looking at schools – yes, already – and the dread of school fees is something to start saving for. So, price a few schools and get budgeting!
If you’ve been adult’ing well up until now, you probably already have a budget underway that you live by religiously. If not, you should look at starting one ASAP. Remember, it’s never too late to build a robust budget, and now that your family is a priority, now has never been a better time to start.
Regardless, whether you have one already or starting a-fresh, open a savings account specifically for school fees. Yes, school fees will be one of your largest expenses over the upcoming years so there is nothing wrong with getting things going early. Even if you start out small, every jump-start counts.
Need more space? It might not be necessary…yet.
If you’re still cramped-up in a lover’s nest, you might want to consider something a little bigger for your coming angel – you know, the screaming angel who always needs a nappy change, who you love even more when you haven’t slept the night. Yes, that angel!
Well, this is the time you might want to consider a bigger place. Whether you’re renting or looking to buy, have a look round at some affordable options that suit your budget. But, importantly, if nothing suits you for the moment, don’t panic!
One thing we all love about babies is they don’t take up much space, so don’t be anxious and jump-the-gun when it comes to a move. Rather, relax, budget and consider a place two or three years from now, one that you save enough for and one you can afford.
Don’t move for the sake of the baby. Don’t add to the stress. Rather, budget carefully for a better move later on for the sake of a bigger baby.
University? Well, now’s a better time than any.
Yes, you’ve probably already laid out their future in your mind’s eye – and whether you’re naming your child something that sounds better said after ‘Doctor’, or naming them something that sounds brilliant for the big screen, they’ll probably need to study something to achieve your… we mean their dreams.
Yes, there has never been a better time to start saving for university fees than now. Can you imagine the amount of money you can accumulate after 18 years of saving? Put aside a little every month – even the smallest amount – and let the amount slowly build up. Importantly, these savings should be separate to traditional school fees and very difficult to access.
Your future self will definitely thank you and so will your child – and hey, if they’re anything as financially savvy as Mom or Dad, they might even pay you back one day! We can only hope…
Save and save some – then, lock it away!
Yes, you probably expected most of this family-financial rhetoric to be soaked in ‘savings’, and you’ve been right so far. But, what you might be wondering is the type of savings to pursue. Yes, as saving can take on a variety of forms, saving for your family should take on a sterner face.
As you suspected, your hunch is right: Open accounts or invest in financial products that are difficult to access. If you do so, you will be less likely to access them for other purposes, as they will likely incur large financial penalties for doing so. Yes, punish your future temptation and reward your patience. Keep your funds locked away and difficult to access. Your child is worth it! But you knew that already.
It might be worth your while approaching a financial advisor to get advice about where best to save your money so that you can get the best possible return for it.
Get new insurances. Life and medical covers will need a look-in.
Yes, it’s not nice to think of, but death is an inevitable reality that we all face in life. Should you pass on, the last you want is to leave your family in a spot of financial trouble, even if it’s not your fault.
This is especially true when it comes to estate planning. Life covers are great at remedying cash flow shortages within an estate, and can literally save your family millions of Rands if life covers are utilised correctly. It is advised you get a financial advisor to best advise you on a life cover that suits your circumstances.
Likewise, you may want to re-evaluate your medical insurances. Are they the best options for a young family or are you paying for more than you should? Do not be shy to shop around and find the best possible option for you and your family.
Carefully compare hospital plans with generic medical aids and consider them with a financial eye to the future. No doubt, insurance shopping will be the best shopping you’ll do.
Except shopping for baby clothes of course: There is nothing cuter than a little one-sie, is there? Take it easy folks. The best memories are yet to come.