Before we can go on and take care of another life, we first need to make sure we’ve got our own lives in order. Especially when it comes to our finances. So it’s important that you read this financial advice for women before kids to be well prepared.
There are going to be so many unexpected costs when you have a child. The best thing for you to do for the whole family is to make sure you’re financially sound before having a baby.
So here’s some financial advice for women before kids to keep in mind:
1. Get insured
Yes, it sounds like we’re nagging, but insurance is an extremely important element for financial security, whether it is pre- or post-kids. Of course, the earlier you buy your insurance, the cheaper the premiums are. Be sure to have good medical and life insurance plans in place before having a baby.
2. Set up a will
You might think, “Oh, I am too young to have a will.” But no, you’re never too young to have a will. Life is hella unpredictable.
Do you own a house? Any form of assets? Insurance? A pension? You will have to put all of this down in writing for posterity.
As long as you’re above 21, you’re legally allowed to make a will.
3. Start a savings account specifically for child care and expenses
Having a baby is not cheap. Let me repeat that: Having a baby is NOT cheap. In fact, having a baby requires extensive thought into your budget plans.
You will need to consider the cost of being pregnant (pre-natal vitamins, visits to the doctor, etc.), delivery charges (are you ready to foot the bill for an emergency C-section if needed?) and of course, one time purchases like your baby’s crib, car seat, carriers, strollers, etc.
Not to mention, you will also have to consider confinement costs, costs for childcare when you go back to work and more!
4. Starting a trust fund for your child’s education
Depending on what kind of school you want to send your kids to in the future, you could be looking at spending millions of dollars on their education. Sending your kids to government school is the cheapest option, of course, but will still set you back at least S$40,000 over the course of their schooling years.
So in order to be prepared for this, you ought to start saving for your child’s education through a trust fund.
5. Have a retirement fund in place
The last thing you want to do is rely on your little one to support you in your later years. It is important to have your own money set aside for your retirement to enjoy your golden years.
Most employee provident funds may not be sufficient nowadays, so it is important to have an alternative savings pool for when you retire.
Any more financial advice for women before kids you want to share with us? Let us know in the comments below!
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