Is newfound parenthood bogging you down with responsibilities? Hands down, bringing up your child will be one of the most expensive affairs that you will undertake in your life. And this is exactly why it calls for a complete revamp of your financial habits, to secure the future of the whole family.
Fret not! We’ve shortlisted some actionable tips about money management to help you take on (and ace) the role of a financially responsible parent.
Let’s take a look.
Redefine Your Budget
Begin by completely redefining your expense budget before the baby arrives. It should incorporate every expense related to the baby to ensure a smoother cash flow in the household. A pre-planned budget will guard your finances against any surprises by making sure that every need of the baby is accounted for.
Once you have a basic plan in place, it can be constantly tweaked and optimized to meet your changing requirements.
Prepare for a Single Source of Income
There’s a chance that the mother may choose to take a break from work and stay with the newborn at home. This will also translate into loss of an income source and the associated benefits in a time of soaring expenses. You need to consider this factor while charting your financial roadmap.
Avail Health Insurance
With a new member added to your family, it is imperative that you avail health insurance for him or her. Based on UAE Health Insurance regulations, the newborn is automatically insured for a period of 30 days, under the mother’s health insurance policy. Post that, you will require a dedicated health insurance policy for your child. In case this isn’t automatically offered by your employer, you’ll have to do your research and buy one that fits your requirements.
Plan for the Child’s Education
UAE clocks the second highest school fees in the world. Add to that, the cost of higher education and you have an astronomical figure that seems unattainable without efficient financial planning. Hence, it makes sense to look at education plans offered by various financial institutions across the UAE.
Write a Will
Life is often an unpredictable rollercoaster ride and having a Will in place is never a bad idea. A logical financial plan should include a legal Will that passes on your assets and investments to your spouse and child in the event of a mishap. This should also include a clause of naming a trusted guardian for the child.
Get Life Insurance
Investing in a Life Insurance plan is a basic necessity in today’s uncertain world. An optimum financial management regime safeguards the future and education of your child in the case of an untimely demise of you or your spouse.
Start Saving
A good saving habit is the foundation of goal-oriented financial planning. It enables you to meet all your short-term and long-term financial goals. It also provides you with the resources required to undertake the financial responsibility of raising a child.