When you become a mother, one thing is for sure. Life will never be the same again – and that applies to your financial plans too! That’s why it’s important to set your financial priorities, as well as to review your short-term and long-term goals.
For mummies who intend to become a stay-at-home parent: You still need to plan for retirement! Often, stay-home mothers dedicate all their time, energy and resources to taking care of the family and tend to neglect their own financial planning. Even if you are not the key decision-maker, make sure you are at least aware of what’s happening with your family finances.
There are mothers who decide to reenter the workforce after years of caring for the family full-time. Taking time away from the office can result in a challenging career gap, which may hinder your job-seeking process. To keep your hiring prospects bright, you can consider taking on part-time or contract work in the meanwhile. Another option is to become self-employed, which may offer more time flexibility to juggle your family commitments.
As for the mummies who return right to work after maternity leave, you will need to consider other important aspects of Life Planning such as protection and preparation. Your child/children will be financially dependent upon you for many years to come. Hence it is vital to review existing insurance plans to ensure you have adequate coverage and resources to fall back on, should unfortunate circumstances happen to you.
Writing a will is the only way to ensure your family will be taken care of according to your wishes. There are three main areas to state clearly in your will – who should inherit your assets, who will be your will executor and who will be the legal guardians of your dependent children.
There are also other planning tools at your disposal, such as the Lasting Power of Attorney (LPA) and an Advance Medical Directive (AMD). An LPA takes effect when you are still alive but have lost your mental faculties; while an AMD will kick into place if terminal illness strikes and you do not want any life-sustaining treatment to prolong your life. And if you have CPF assets, remember to make a nomination.
With your Life Planning in place and set for regular review at each stage of your life, your memorable journey as a woman and a mother will be even sweeter!
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