Taking your first steps to put the financial basics in place for your family can be really simple.
Here is what a new parent needs to do and why, and how it can be done immediately!
When you’re a young parent with a full plate of responsibilities and a host of new baby expenses, getting your financial affairs in order are typically not as big a priority as it should be. But is it worth it to put your family at risk if something does go wrong?
A new parent should get at least the following in place:
- Update your Will to ensure you select the right legal guardians for your kids should anything happen to you and your partner – don’t leave it up to the courts to decide;
- Get life insurance to protect your child’s future by insuring their education;
- Start saving for your kid’s university/college education as soon as possible.
Your kids will be financially dependent on you for at least the first 20 years of their lives. Most of us will pay for their monthly schooling from our salaries and hopefully there is enough left in the budget to start saving for that university/college fund. It is estimated that parents who send their children to public schools and pay for a three-year university degree, will spend on average about R1.2 million per child in today’s financial terms – and the figure doubles if your child goes to a private school. That is a lot of money that will come from your future salary! And it is why becoming a parent is such an enormous financial decision.
Should anything happen to you in the next week, where will your family’s money come from? Very few young parents have enough savings in the bank to ensure that their children have the financial means to finish school and continue their education as needed. How do you protect your children’s future? That’s why it is so critical to have enough life insurance in place right away. It will ensure that your kids can enjoy all the opportunities you want for them, no matter what happens.
Many parents already know that things like getting life insurance and a Will is important, but delay or forget about it. Or they just do not know where to start as it is such an intimidating thing to do. Research shows that young parents in South Africa need cover the most and 75%* do not have any at all.
Becoming a new parent is an exciting milestone. But by checking these financial items off of your to-do list, you can sleep soundly knowing your family will be well taken care of, no matter what happens. Are you ready to take that important financial first steps?
Speak to one of the Hero Life experts and see how easy they have made it. They are passionate about assisting young parents with the basics and and their experts help parents digitally at no additional cost …. so that you can get things done anytime from anywhere.