The way people think about money tends to change as they get older, and especially when they have children, and I’m not just talking about having less of it to spend on ourselves!
Bringing a child into the world alters how a person sees their future, both personal but also financial. You no longer look at money as a tool to secure your future, but now begin to consider how it will affect the lives of your children when you’re gone.
If you have found yourself in this position or hope to do so one day, then the following advice may come in handy.
The number one priority of any parent or parent to be.
Many of us are guilty of overlooking life insurance in your younger years, mostly due to the feeling of being immortal as a young person. We push such thoughts to the back of our head, believing matter such as life insurance to only be the concern of the middle-aged and old.
Having a child changes all of that.
Once you realise that you’re responsible for another person, who is helpless initially, you start to think about what would happen if you weren’t around. How would that child be cared for?
If you’re thinking of looking into life insurance as a parent, then I’d certainly say that it’s something you really should be considering as a priority.
The idea of trying to raise a child after the death of one (or in some really sad cases, both) parent is tough enough without taking into account the financial aspect of it all.
A good life insurance policy for both parents is vital and should be at the top of your “to-do” list.
Create a Will
This is another thing that most people don’t think about until they either reach a certain age or have children.
A Will, along with a Healthcare Directive and Power of Attorney is crucial to securing the future of your child, especially if something should happen to you while your baby is still young.
A life insurance policy will help deal with financial issues that your child may face in the result of losing a parent, but a Will and Power of Attorney will help deal with possible custody issues that may arise in certain circumstances.
It should go without saying that having a child is a huge responsibility, both personally and financially.
You need to have a good savings account as a buffer to help deal with any financial issues that arise.
Most parents-to-be tend to build up those savings before having their child, but we all know that everything doesn’t always go as planned.
With that in mind, the best thing to do is start looking at your savings situation as soon as possible, be it at the point of pregnancy or even afterwards.
You should start to reconsider how you spend your money, make the necessary changes from being a young couple with no real obligations to being parents.
Try to put a set amount of money away on a weekly or monthly basis, and make sure to make that payment before anything else.
A lot of savings sites will advise that you pay yourself first before any bills or spending money, so make sure to add to those savings.
It may be the situation at the moment that you’re not a parent and aren’t planning on becoming one anytime soon. Perhaps you’re an Uncle, an Aunt, or a grandparent?
If so, you can always help out those family members with children, even if they happen to live overseas by providing some financial assistance by way of a money transfer.
Here at Ria Financial we offer competitive rates and provide world class service, so get in touch with us to see how we can help you to help your loved ones.