Becoming a parent is such a huge responsibility, not only is it important to provide encouragement, support, and access to activities that will enable the child to master key developmental tasks. One must ensure that the child has a healthy relationship with money.
A child’s learning and socialization are most influenced by their family since the family is the child’s primary social group. Happy parents raise happy children. Parents that are financially literate, are able to effortlessly educate their children on money matters.
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Focusing on the below topics gives us a scope through parenthood
Although everyone has the right to choose their own parenting method, knowledge can never be unwelcome.
- What you wish you knew before being a parent
- Life lessons parenting taught me
- How you prepared yourself for parenthood
- How you handle your finances as a parent
What I wished I knew before becoming a parent:
Parenthood starts with the pregnancy journey; it is very important to know beforehand all the options available for you and your health, whom you prefer as your gynecologist, which hospital you choose to give birth to, and all the extra costs involved. One can never truly be ready for the sleepless nights, emotional attachment, and ever-changing family dynamic.
Little or no sex, and conflict over evolving new roles are just some of the relationship worries placed on parents.
It would be wise to choose your birth plan beforehand if possible, and set up a savings account or medical aid that will assist with every month’s gynae visits. One can also opt to use the public clinics’ facilities which are free, the only downside to that is, that most public clinics are short-staffed and therefore the cues are very long.
Parenthood is not only about the new baby arriving but also about you preparing yourself financially. Most women are able to claim from their UIF (Unemployment Insurance Fund) whilst on maternity leave, however, that could become an overwhelming process, I would recommend, rather have a reserve account you can access. The UIF payment could take up to three months before one receives it, opt for multiple savings account to ensure all your needs are covered during your pregnancy and maternity journey.
Life lessons Parenting taught me:
Once you have your first child, everything around you changes as well as your priorities. The greatest evolvement will be yourself, now that is the scariest development one can expect, but at the same time, it is the best surprise one can look forward to.
Embrace your new self and get to know who you are, set up achievable goals, and learn new hobbies you can do with your child. Do not compare yourself with other people, remember that we all have different destinations in life.
Learn to be content with your choices and learn to appreciate all your millstones, even those you regard as small. I had to accept that I will never be perfect, and my child does not need a perfect parent, they only need a happy and constant one.
Strive for happiness because, at the end of the day, you will want to be remembered as a loving, caring, humble person.
Always be ready for anything, and when life happens do not get demotivated easily, everything has its own time.
How you can prepare yourself for parenthood:
The transition to parenthood is a vulnerable time for many parents, we have seen most mothers’ mental health take a knock, with approximately 9–21% of women experiencing depression and/or anxiety. Therefore, is very important to make time and prioritize yourself every once and a while. Reading books, building communication, establishing parenting values, and building social bonds are tools you could use to assist yourself in mentally prepared.
Financial stability and financial literacy are crucial to have. Taking out different investment portfolios will assist you in building generational wealth for your child. As a parent, you want to give your child the best of everything to ensure that they have a better and brighter future. You will need to look at, Life insurance, funeral cover and not forgetting a savings account.
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As I mentioned above in “What I wished I knew before becoming a parent”, I mentioned having more than one savings account, a savings account is not the same as an investment. When one is investing, you are looking at a timeframe of ten (10) to fifteen (15) years, this is where you can opt for tax-free investment plans with any Institution of your choice.
A savings account can be used for day-to-day emergencies and school trips, vacations, and anything else you choose. Having multiple savings accounts can assist you to monitor your growth and ensure you do not overspend.
Read: Why you need an emergency fund
How to handle your finances as a parent:
Child support is a legal obligation that all biological parents have towards their children. Providing for their basic living expenses such as food, clothing, shelter, health care, and education.
We have four types of Financial Decisions – Financing Decisions, Investment decisions education, Insurance decisions, and Budgeting decisions
Financing Decision:
This is when the Parents raise funds to buy assets necessary to support themselves and their family. One should ask themselves these two questions for the best decision.
• How much capital is needed to fund the household goals?
• What is the best way to finance your household goals?
Money itself can be called capital, the word is usually used to describe money used to make things or invest in, namely; bank accounts, stocks, and bonds.
Finance is defined as the management of money and includes activities such as investing, borrowing, lending, budgeting, and saving.
By Identifying the best financial options available to you, you are then in a better place to make great decisions.
Investment decisions:
Investing in your child’s future is very important, make sure you choose the best plan for your family. Please do not be tempted to use your child’s educational funds for another project. A tax-free savings account is the most popular investment tool, parents normally choose it because it has the most value for money. Educational plans can help parents break the cycle of poverty in their families and communities.
Read: Tax-free Investment Account: frequently asked questions
Insurance decisions:
Health care insurance facilitates access to care and is associated with lower death rates, better health outcomes, and improved productivity. Being able to be in a position to choose which hospital to go to, will give you ease as new parents. Luckily, we have multiple health care insurances available, and you can choose the best option for your family.
Have you heard of Episodic Health? Episodic Health (Pty) Ltd, is a Financial Services Provider (FSP 49319). Health product is administered by Essential Med (Pty) Ltd (FSP 42980), the Underwriting Management Agent on behalf of the insurer African Unity Life (FSP 8447).
Life insurance, why is life insurance important? Life insurance ensures that your family or nominated beneficiaries are taken care of when you die. It replaces the salary you would have earned during your life. Insurance plans will help you pay for medical emergencies, hospitalization, and medical care required in the future. This provides you with peace of mind when you need it most.
Budgeting decisions:
Budgeting is important because it helps you control your spending, track your expenses, and saves more money. Additionally, budgeting can help you make better financial decisions, prepare for emergencies, get out of debt, and stay focused on your long-term financial goals. Becoming a parent can bring so many insecurities, preparing beforehand will not only give you peace of mind but also clarity on your financial shortfalls. Budgets can also help you improve communication between you and your partner. Budgets improve resource allocation because all requests are clarified and justified.
In conclusion, becoming a parent is a huge responsibility with many things to take into consideration. Please feel free to enroll in our free courses on our website to enrich yourself with knowledge. Yet, if you are blessed to have your own bundle, enjoy every moment because nothing is guaranteed in this life. All you can do is do your best with what you have, and that will be enough.
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