Money, Motherhood • 13/05/2020

5 Financial Moves You Should Make As A Mum

By: Miss Moraa

 

As a mom, you’re essentially a provider and homemaker. This means that the family expenses, including those of your child, yourself, and other relations dig deep into your pocket.

For this reason, as a mom, whether or not you have a spouse, it is prudent to be financially conscious of what you need to maintain financial stability and security.

Below, we share 5 financial moves (and a bonus tip!) that will place you way ahead of the curve.

 

Have a House Budget and Create an Emergency Fund Around it

Instead of operating on autopilot or having a rough figure on what you think you spend, create a house budget. Having one will help you, as a mom, know what expenses recur month after month.

If you have a partner such as a husband, it is easier to know who will take care of which expenses. Perhaps one will handle the rent, vehicular expenses, and child care expenses such as hiring a nanny. While the other will handle groceries, basic household items, bills and clothes.

Knowing how much you spend month after month will help you know how much you can put into your emergency fund. For instance, if you spend 60,000 KES per month, you’ll need to multiply that by 6-12 months for the emergency fund.

That way, if unexpected unemployment or salary cuts come your way, you’ll be cushioned for several months as you come up with new ways to gain financial stability.

 

Live Within Your Means

While keeping up with the Joneses may be the peer pressure that parents go through, keep in mind that living above your means is a terrible idea. Trying to have a bigger house or a new flashier car will get you into debt fast.

There are simple ways to live within your means that will save you thousands month after month. Some essential tips:

  • First, you may prioritize financial security over upgrading your lifestyle.
  • Second, items such as clothes are recurrent and expensive. Thrifting and hand me downs are an extra option to have for your children.
  • Third, when you are at the childbearing stage, consider buying convertible gear. Buying a convertible stroller that can be used when the child is a baby, a toddler, and in the car is a great one-off expense. It can also be used child after child. Also, go for fewer clothes when shopping for babies and toddlers. They quickly outgrow them.
  • Fourth, teach your children this same concept, so that when you go for shopping, they pressure you less and less for new toys or fancy items.

 

Photo c/o @_thecolelife_

 

Save for your Children’s College/ University Fund

Most parents think of college tuition and accommodation expenses for their children as being far away into the future. The truth is, the years fly by so quickly. One day they are toddlers smiling at you, and the next, they are in seventh grade, and then high school. Before you know it, they are leaving the nest for college or university.

Interestingly, money-wise, time is a friend because of the compound effect and the 18 years between infancy and college/university are golden. For this reason, saving for their college tuition fees as early as possible is highly recommended. You can open a savings account with a good interest rate in their name, and save for this future expense. Given the compound interest, the money will also increase as you continue to save, not only for your deposits but also for the interest that it generates.

 

Include Your Child/Children in Your Health Insurance Policy

While insurance policies may automatically include your offspring as dependents it is good to make sure you go through the paperwork to ascertain it. This is especially important for new moms, as hospital visits and medical checkups can turn out to be huge expenses.

Knowing what is covered, and to what extent, for both, you and your child/children will help you have less stress whenever the issue of medical bills, and hospital visits come up. Make sure your children are well covered so that you are covered too!

Photo c/o @geekonfashion

 

Get a Life Insurance Policy and Write a Will

We hope to live to be a hundred and to see our children’s children. However, sometimes, life happens. While it is painful to even think about it, as a mom, it is prudent to think of the financial stability of our children and family long after we are gone. Leaving them secure, while they are grieving and trying to find their place in the world without you, is a most loving gesture. Therefore, consider life insurance which is suitable within your financial means. If you are younger, even better, as the premiums will be cheaper and have a longer time to mature.

And while at it, you may also write a notarized will where you mention to whom your possessions will be bequeathed. State who your child’s/children’s guardians will be if they are minors so that there will be no avoidable post-humous struggles within the family. Taking these steps will help ease the mortal fear of leaving your children behind.

 

Bonus Tip: Take Care of Yourself as a Provider and Keep Growing Financially

Having money to spend month after month, to save in an emergency fund, contribute to a college tuition fund, towards your life insurance, affording medical bills and vacations, is no easy feat. Therefore, as a mom, you can keep growing financially by

  • Ensuring your employer is making the maximum legal retirement contributions to your fund.
  • If your workplace has policies such as maternity leave and you are expectant, milk that policy for what it is worth. Pun intended.
  • Also, increase your work skills so that you can get aid better. Diversify your income streams, so that in the event one is cut off, you can still stay afloat.
  • When making the family budget, ensure its team effort between you and your partner to ease your financial burden.

In short, keep growing financially; The quality of life for yourself and your family/children greatly depends on it!