As a mum myself I know that being a new mum is an exciting time in your life. But, there’s a lot of new things to learn and it’s normal that you might feel a little bit nervous and possibly sometimes a little overwhelmed. And when you bring your baby home and you’re getting used to your new baby and your new role as a mum, your baby’s health and happiness is likely to be your main priority and consume most of your thoughts.
But I ask you to take a minute to consider your finances. Because managing your finances well during this stage of your life will significantly benefit you and your family. I’m going to share with you six money tips for new mums that will hopefully help get you off to a good start.
Tip #1 – Set up a bank account for each child
A good way to do this is if you have a mortgage, is to set up separate offset accounts for each child and nickname them on the internet banking so you know which account is for which child. That way any money that you receive as a gift for your children you can deposit straight into their accounts and start building up their savings. You can then give this to them later in life when they need it.
Tip #2 – Set up an emergency fund
Kids are unpredictable, right? Preferably you also want your emergency fund to be offsetting your home loan in a separate account. I recommend allocating a minimum of 10% of your income into your emergency fund each pay so that you’re constantly working on building that up.
Tip #3 – Start a savings account for education
Early learning can start from the age of three and it can be expensive. Private schooling is also expensive. So, if you want to have the choice of private schooling and early learning centre to ensure that your child gets the best start, make sure you start saving for that as soon as possible. Set up a separate offset account against your mortgage and start boosting up your savings for education.
Tip #4 – Be cost conscious
Whilst it can be exciting to go out and buy everything brand new, often the first five years of the child’s life are the hardest financially for a family. Having to drop to one or one and a half incomes can be difficult and put a strain on the family’s finances.
Your baby doesn’t necessarily need everything brand new. Think about where you can get hand me downs as babies often grow out of things quickly. Try and be cost savvy where you can and consider where you can save a little bit of money and still give your child the best start in life.
Tip #5 – Protect your growing family
We all hope that we’ll be healthy and happy and live long lives and live long enough to see our children grow up and maybe even have children of their own. But life doesn’t always work out that way. So, review and consider what insurances you’ve got in place. Specifically consider life insurance and trauma insurance cover.
Making sure that your kids will be debt free and protected if something happened to you and your partner. I also really encourage you to prepare a will with a professional lawyer. And give a copy of that will to trusted family members so that they know what to do if something happens. This will not only cover your financial wishes, but also what your guardianship wishes are if something was to happen to you.
Tip #6 – Spend money on your health and happiness regularly
Being a new mum is an important job. It’s easy to lose yourself. It’s essential for your family and essential for your child’s health and happiness is that you yourself are healthy and happy.
So, make sure you’re allocating some funds regularly so that you can still do things that you enjoy. And things that make you, you. Things that make you happy. So that you can be the best version of yourself and bring the best version of yourself to your family.
Overall remember that you’ve got this. Being a mum is probably one of the hardest, but most rewarding experiences you will ever face. So, embrace every part of the journey. The more prepared and confident you become with your finances, the more confident you will be in caring for your loved ones and giving them the best start to life.
I hope these tips helped you. If they did, please like and share with family or friends that might also find them useful. And I’d love to hear your comments on any money tips for new mums that have served you well.
If you would like to discuss your own personal situation with one of our friendly brokers, then please reach out to us!