Planning to become a Mom? Here’s something to think about.
With the spotlight on Mother’s Day this month, expectant moms and those planning a family may have started visualising their future bundle of joy. The cuddles, the giggles, and those cute tiny clothes. A new baby will capture your heart. It will also capture a fair portion of your family’s budget!
Stanleur says pregnancy and parenting is costly. “Above the known costs, there are many small things which people don’t always budget for. And these can add up to big costs. Going into this new life stage with your eyes wide open is important. Have a financial plan that takes into account the financial implications of each stage of the pregnancy as well as the months and years that follow.”
Stanleur says your plan should cover the following costs and considerations:Pre-pregnancy
Make sure your medical aid’s maternity benefits offer sufficient cover. If you aren’t on a medical aid, sign up before you fall pregnant. Most medical aids won’t sign you up once you are already pregnant. Getting gap cover will be very useful as it can help pay the deficit between what your medical scheme pays and what the service providers charge.
Start saving for big items like the pram and baby cot.
If you don’t have a medical aid, find out from different providers, e.g hospitals, mid-wives and birthing centres how much childbirth will cost and start saving for that.
Start thinking about updating your will, appointing a legal guardian, increasing your life cover and emergency fund, and starting an education fund.
Sit down with your HR manager to understand your maternity benefits.
Keep receipts for all purchases so that you can exchange items like nappies for a bigger size if your baby outgrows them and look for specials.
Your budget will need to account for your maternity leave, the baby’s living expenses, insurance and the additional medical aid premium for your new addition.
Add your new baby to your medical aid immediately and expect a premium increase.
After your baby has arrived
Budget for check-up consultations with your paediatrician and vaccinations if you are not going to use the free service in a government health clinics.
A quick scan online adverts shows that childcare expenses start around R1500p/m and can climb up to R8000p/m should you require a fulltime nanny
Reconfigure your monthly budget to make room for nappies and toiletries. Prices online show that these can cost up to R400p/m respectively.
If you’ve decided to stop working or reduce your hours; you need to take your adjusted income into account and change your budget accordingly.