Happy Mother’s Day to all the amazing mothers out there! Motherhood is a wonderful feeling for all women. It is a turning point in their lives. Alongside the joy and celebration for the little one, motherhood brings a lot of responsibilities, including the financial aspect of providing for both yourself and your young one.

In a society like ours, most women even today, amidst nurturing and caring for the family, overlook financial planning for themselves as well as for their children. But a mother has an important role to play in establishing long-term financial goals. She can set objectives for her child’s education, healthcare and other essential needs. She can lead the way in making decisions that align with a clear financial vision.

In this article, we will discuss how, amidst the evolving dynamics of modern families, new moms can play a pivotal role not just in managing daily expenses but also in securing the family’s financial future.

Also Read: Mother’s Day 2024: Understanding the significance of health insurance for women

Take a look at these 5 tips shared by Joyeeta Ghosal, Director-Marketing, GoKwik, for new mothers on this Mother’s Day to help them achieve financial stability:

Earmarking almost 50% of household income for investments:

Having a child shoots up the monthly bills by a great margin immediately. There are several additions, such as medical and child care, establishing a support system, whether in the form of daycare or hired help at home, etc., especially if both parents are working. Despite this, it’s important to start building a corpus for your child’s major expenses in the future, such as their higher education and financial independence after retirement. This calls for a significant mindset change and managing your monthly budget in such a way that you curtail current unnecessary lifestyle expenses and invest them for future expenses.

Necessity of a passive income, or plan-B:

Jobs do offer stability, but unexpected twists can come your way, especially in the unstable times we are facing these days. If you are someone planning on motherhood, you should evaluate your financial options with your spouse and have contingency funds or plans available with you before you embark on this journey. Having passive income streams can be one of the ways in which you can secure your child’s future expenses, even if you have to take a break or want to be financially independent and not depend on your husband’s income. There are several options available today, such as freelancing, renting out free space, even creating content on social media.

Look for opportunities through part-time work or home-based businesses:

Financial contribution isn’t exclusive to earning a full-time salary. Many non-working mothers create substantial security through part-time work or home-based businesses and savings—a lot of savings from their daily expenses. These endeavours can gradually build a nest egg for your child’s future without requiring the commitment of a 9-to-5 job.

Setting financial goals early:

Mapping out clear financial goals is a game changer. Determining how much you want to save for your child’s education, setting a retirement age, and planning for all the life events in between give you a blueprint to work towards. The earlier you start, the more you can enjoy financial freedom while ensuring the best for your child.

Life insurance and health insurance:

It’s important to have life insurance once you become a parent so that, in case of any setbacks, your child’s future is safe. One should look at life insurance as a contingency plan in case you are not around for your child and want to safeguard their financial well-being, but definitely not as an investment option with returns during your lifetime. There are many such options available today, but the returns are abysmally low. Once you have a baby, you should get them added to your medical insurance plan immediately, with significantly higher coverage. This will help secure your family from any financial losses in times of medical emergencies. So it’s an investment for your family’s wellbeing.

Conclusion:

Balancing work and motherhood is a challenging feat, but with focused financial planning, it becomes a journey of growth and empowerment. It’s about making informed choices, embracing discipline, and sometimes making sacrifices, all for that peace of mind knowing that the financial aspects of your child’s future are secure.