How can would-be mothers secure their child’s future?
Becoming a parent is not an easy task, especially for women. The journey of motherhood starts the day you conceive. Pregnancy is a whole new world with a completely different lifestyle, where the focal point is the well-being of your child. There are various aspects that you may plan for, like baby clothes, food essentials, a comfortable cot and stroller, a well-decorated playroom, and so on. This is an endless list that keeps growing with every passing day. But seldom is it realised that all these things cost money and once your baby is here, accommodating these expenses along with new responsibilities can be a herculean task. This is why it is important to account for all possible costs well ahead of time.
Here are some pre- and post-childbirth financial tips you must consider when planning for a baby:
Pre-birth financial planning
Expenses start right from the day you get the news of your pregnancy. The ultrasound, iron-folic acid supplements, calcium tablets, and several other follow-ups can cost a lot. It is vitalto prepare ahead of time. Here are some ways that can help soon-to-be mothers reduce their expenses:
- Limit your expenditure: Motherhood can be an expensive journey. Right from medical costs and dietary expenses to hospital fees at the time of delivery, your budget is likely to get affected once you become a parent. However, limiting your other expenditure can help you cover these costs.
A lot of employers also do not pay for maternity leaves. If your company does not offer paid leaves, you need to carefully handle your money in the first few months of pregnancy to prepare for a time without an income.
- List all maternity-related expenses: The next is to make a list of all maternity-related expenses like check-ups, ultrasounds and medicines, delivery and hospitalization expenses, childcare costs, baby essentials, etc., and plan a budget that can accommodate them.
- Deliver at a hospital covered under your insurance policy: A very crucial point to consider well ahead of time is to shortlist a few potential hospitals for your delivery. You should also make sure that these are covered under your health insurance. If you do not have a health insurance plan, make sure to get one that offers maternity riders. These are instrumental in covering pre- and post-natal costs and offer various benefits like cashless hospitalization, etc.
- Factor in your pre-existing debts: It is important to account for debts like loans, credit card bills, etc. Try to settle your debt before planning for a child. You should also invest in avenues with good returns so you can use these funds for the well-being of your child in the future.
Post-birth financial planning
Once your child is born, along with happiness comes a different set of responsibilities. These may include hiring a helping hand to take care of your child or funding their education and marriage. Here are some things to consider post-childbirth:
- Factor in childcare expenses: If you do not have help at home, you may need to bring in a caretaker or nanny to look after your little bundle of joy. Nannies are well-trained in bathing, feeding, massaging and everything else that is necessary for the child. They even take care of the new mother and her requirements. However, these services can come at different costs depending on your requirements and the city you reside in.
- Update your different insurance policies: Once your child is born, you must revisit all your insurances and make necessary changes to add your child as a beneficiary.
- Re-plan your estate: Once your child is born, you must rewrite or make necessary amendments to your will, savings accounts and other assets. You should be careful while making these modifications and think of the best interest of your child.
- Get life insurance: Life insurance can help families in unfortunate times. You may not always be there for your child, which is why it is important to safeguard their future. A good life insurance policy can ensure your child’s financial security.
- Start saving for their education: With inflation, higher education expenses have considerably increased over the years. Investing in a good child plan from the very start will enable you to fund their education and let their dreams come true.
- Don’t neglect your retirement: Saving for retirement is perhaps one of the most important and overlooked points. While you make amends to your lifestyle and budget to make way for your child, you must not ignore your own future. A good retirement plan not only secures your tomorrow but also allows you to leave a legacy for your children.
To sum it up
Becoming a mother is a never-ending job. No parent wants to leave any stone unturned for their child. So, prepare well in advance and make sure that you do not let finances come in the way of your child’s happiness.
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