Having a baby
As any parent will tell you, having a baby changes everything. Life isn’t simply about you and your partner anymore – you’re now responsible for the wellbeing of the newest addition to your family. Good financial planning at this stage of life is more important than ever, as you’ll want to provide for your baby’s future and set them up for success. So take some time to review your financial portfolio and make any necessary changes, whether that’s increasing your life cover amount or putting an education savings plan in place.
Make sure they’re protected
Who will take care of your family when you’re gone? While it’s not an easy question to ask yourself, now is the time to plan ahead to ensure that your dependents will be financially secure should something happen to you. Having sufficient life cover in place will protect your family financially and help them to continue living the life you planned for them. Remember that a life cover payout can be used to cover living expenses, home loan payments, education costs and more.
Saving for your child’s future
In today’s economic climate, South African families often find themselves between a rock and a hard place when making decisions about saving for the future. What should you save for first? Your children’s education and then retirement? Or vice versa? In the view of Danelle van Heerde, Head of Advice Processes at Sanlam Personal Finance, one financial priority should always take precedence – saving for retirement. Many people delay starting to save for retirement, believing it is more important to put away money for their children’s education first. They think they will be able to catch up on retirement savings later, once their children have started working.
Plan ahead for those who mean the most to you
No-one wants to think about the end of their life, but the future is uncertain and it’s important to plan for the financial wellbeing of your spouse and children while you still can. Creating a last will and testament will ensure that your family is taken of and that everything you’ve worked for will be left to those who mean the most to you.
