Mom and Money

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Moms, whilst you will be showered with love and gifts this Sunday, you also need to re-look your financial nests to ensure you have the right insurance and investment products for yourself and your children

moms and money

Every mom undoubtedly wants to give her children the best upbringing, but what about a sound financial future when she is no longer around to provide for them? Michelle Dubois, Legal Marketing Specialist at Liberty gives us a few tips.

Spending wisely

As a mother it’s important to know where your money is invested and be aware of your own spending habits. You can’t create a culture of saving with your children if you yourself aren’t practicing financial discipline. Know what you are covered for and invest in yourself first. It’s best to consult an accredited Financial Adviser to ensure that you have the correct policies in place to suit your needs and meet with them at least once a year to update your investments such as unit trusts, shares etc. Even though you are a mom and have the responsibility to look out for the wellbeing of your children, your own dreams are also still important, so don’t neglect saving for your own goals and be sure to spoil yourself every now and again!

Saving for your children’s education

By giving your children a sound education, you give them the power to make wise choices and to create sustainable opportunities for themselves. From the day you see your first ultra sound and count your baby’s fingers and toes, you become aware of the enormous responsibility you have created. A sound savings plan- started early and invested wisely- will ensure that your investment takes advantage of compound interest and that you are in a position to offer your children the best education possible.

Being prepared for eventualities

Although your children perceive you as superwoman, it’s important to consider your own mortality. Being struck by a critical illness or becoming disabled is not something that we like to think about, but being prepared for these eventualities will give you peace of mind that you will be financially independent in any unforeseen circumstance and that your children can still be taken care of while you recover. As such, critical illness cover and disability cover are essential to any parent’s financial plan. Income protection cover is also a must-have for working moms. This policy will ensure that you are still able to provide for your family should you happen to lose your job due to retrenchment, illness, or a disability that prevents you from carrying out your work responsibilities.

Getting financially secure

The most important of all insurance policies that every mother should have is life cover. Whilst most parents are protected against unexpected incidents while they are alive, one must consider the inevitable, unfortunate reality that you won’t always be around to look after your children. Life cover will ensure that your children are financially secure in the event of your death and that they will not be burdened by the debts that you leave behind. While the house bond is categorised as good debt, someone would still need to repay the bank even when you are no longer around.

Lastly, in addition to a life policy, every mom should have an accurate, updated will. By drafting a will you ensure that the wealth you have created for your children is protected and allocated in the manner you intend it to be. It also enables you to appoint a suitable guardian to take care of your children in your absence. Your financial adviser will be able to guide you through this process and structure a plan that best meets the needs of your family.

Happy Mother’s Day and enjoy the rest of YOUR month.