Best Money Moves for Your Family

Review your finances with an eye on your family’s needs for the year

Are you worried about finances with your new baby? You are not alone. Most new parents worry that they won’t cope financially once baby arrives. With the economic fall-out from COVID-19 last year, parents are having to tighten their belts even more.

Coping with financial stress and realigning money matters for 2021 is on everyone’s priority list— and likely to be a source of stress for many. It can even take a toll on your health. By taking control of your personal finances, you can get a handle on stress and put a plan in place for the year ahead.

Here are some ways to navigate your finances this year:

Draw up a family budget

Draw up a budget or review your current one to include additional payments for your new baby. Expenses for formula, nappies and baby consumables can quickly add up, so make adjustments for these. If you had a baby fund during your pregnancy, consider maintaining it to pay for new clothing and toys as your baby grows or to cover any medical shortfalls. It’s never too early to start saving for your child’s education. Speak to a financial advisor about an education policy you can start now.

Make health care a priority

Adjust your budget to include healthcare for your new dependant. Review your plan so you have a clear idea of what your scheme offers and how payments are made. If you have a savings fund, consider what payments are made from this portion. If you aren’t sure about benefits, check with your medical aid or human resources department.

Continue to repay loans

Don’t fall behind on debt. Should your financial situation change within the next several months, it’s important that all loan repayments be up to date. Your bank may consider a payment holiday – if you are in good standing.

Consider one financial decision at a time

If you need to make big financial decisions this year, space them out so you can consider your options carefully for each one. Too many at once can be overwhelming. An emotional decision may not be a correct one, so contact a financial advisor for advice if you are unsure.

Take out life insurance

If you don’t have a policy, make this an immediate priority. A pay-out will provide for your child and partner in the event of your death. If you do have a current policy, ask your broker to review your portfolio. You will probably need to increase your cover to ensure that there are enough funds to take care of your child and his or her education beyond 18 years. It’s also time to review or write up a will if you don’t already have one.

Are you anxious about your finances? Financial stress can impact your personal relationship with your partner and leave you feeling fatigued, suffering with insomnia, unable to eat or over-eating. You may also have physical discomforts, like headaches and other digestive issues or feel depressed. Depression and anxiety can lead to harmful behaviours such as the abuse of drugs or alcohol to cope.

If you are anxious and struggling to cope with stress, reach out to a financial advisor or financial NGO or even a counsellor for additional support.

Resources:  https://www.atypicalfinance.com/; https://www.daveramsey.com/; https://www.fatherly.com/; https://fortunateinvestor.com/; https://www.transunion.co.za/; https://www.doughroller.net/