{"id":257742,"date":"2020-05-14T06:30:15","date_gmt":"2020-05-14T04:30:15","guid":{"rendered":"https:\/\/germistoncitynews.co.za\/?p=257742"},"modified":"2020-05-14T09:05:46","modified_gmt":"2020-05-14T07:05:46","slug":"financial-preparation-is-of-vital-importance-for-prospective-parents","status":"publish","type":"post","link":"https:\/\/develop.citizen.co.za\/germiston-city-news\/news-headlines\/2020\/05\/14\/financial-preparation-is-of-vital-importance-for-prospective-parents\/","title":{"rendered":"Financial preparation is of vital importance for prospective parents"},"content":{"rendered":"
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Having a baby can be wonderful.<\/div>\n<\/div>\n
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It can change your life in so many positive ways.<\/p>\n

You will love more deeply than you thought possible and moments like your child\u2019s first words will become treasured memories.<\/p>

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However, it\u2019s also expensive.<\/p>\n

\u201cIt\u2019s difficult and probably not that helpful to work out an average cost, because expectant parents\u2019 circumstances and choices differ so much, but it\u2019ll probably be more than you think,\u201d warned Marlies Kappers, chief marketing officer at financial services provider at DirectAxis.<\/p>

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\u201cWhen you\u2019re dealing with the excitement of finding out you\u2019re pregnant and trying to remember all the people you need to tell and the millions of things you\u2019ll have to do before the baby arrives, budgeting may not be at the top of your list.\u201d<\/p>\n

With the help of several moms at DirectAxis Kappers put together a list of suggestions to help soon-to-be parents budget for a baby.<\/p>\n

Do the maths:<\/strong><\/p>\n

Having a baby will definitely add to your expenses and often reduce your income.<\/p>\n

If both parents work, you may lose some or all of one parent\u2019s income when the baby arrives.<\/p>\n

Should you want to return to work either your spouse or partner will need to stay at home, or you will need to pay for child care, unless you\u2019re lucky enough to have a relative or close friend who will look after the baby.<\/p>\n

South African women are entitled to four consecutive months of maternity leave, during which time their jobs or an equivalent job must be reserved, but employers are not required to pay some or any of their salary during this time.<\/p>\n

Women who are receiving a portion of or no salary from their employers and who have contributed to the Unemployment Insurance Fund (UIF) can claim between 38 per cent and 58 per cent of their salary, up to a maximum of R12 478, from the UIF tax-free for 121 days.<\/p>\n

Expectant mothers can go on maternity leave any time from up to four weeks before the due date.<\/p>\n

Legally, working dads can take up to 10 days of paid paternity leave.<\/p>\n

Once you know what the household income will be, you\u2019ll be in a better position to draw up a baby-friendly budget.<\/p>\n

When you start budgeting, remember the expenses begin before the baby is born.<\/p>\n

For example, you\u2019ll need maternity clothes and to prepare the nursery.<\/p>\n

A suggestion is to update your budget each trimester.<\/p>\n

ALSO READ:<\/p>\n

Consider the consequences of financial decisions<\/a><\/p>\n

Pre-winter home preparations<\/a><\/p>\n

Check the fine print:<\/strong><\/p>\n

Review your medical aid.<\/p>\n

Find out exactly what is covered and what isn\u2019t, so you don\u2019t get any financial surprises when the baby is born.<\/p>\n

It\u2019s as good a time as any to get all your financial affairs in order.<\/p>\n

Make sure you have an up-to-date will, so if anything happens to you there\u2019s provision for your baby.<\/p>\n

If you don\u2019t have any life insurance now may be the time to consider it.<\/p>\n

If all this seems a bit daunting, make an appointment to see a qualified financial adviser, who\u2019ll be able to do a needs analysis and recommend appropriate products.<\/p>\n

Feather the nest:<\/strong><\/p>\n

Start saving, ideally when you start trying for a baby or at least as soon as you find out you\u2019re pregnant.<\/p>\n

Open a bank account, such as a tax-free savings account, and put away as much money as you can afford each month.<\/p>\n

Shop smartly:<\/strong><\/p>\n

Don\u2019t leave everything to the last minute.<\/p>\n

Not only will this mean having to spend a lot of money at once, rather than spreading the costs over nine months, but chances are you\u2019ll forget something important or buy things you don\u2019t really need.<\/p>\n

Instead, do your research.<\/p>\n

There\u2019s plenty of information for expectant mothers online.<\/p>\n

Once you have a basic list, check it with other mothers and refine it.<\/p>\n

Then compare prices online, so you\u2019re sure you\u2019re getting the best deal.<\/p>\n

Once you\u2019ve got a list of essentials, buy a few items each month.<\/p>\n

Don\u2019t be blinded by the bling:<\/strong><\/p>\n

When it\u2019s your first child, you\u2019ll be tempted to want everything brand new and shiny, but cots, car seats and prams can be expensive.<\/p>\n

Often you can find good quality second-hand items such as prams online, from shops that specialise in refurbishing and reselling these items or from friends whose babies have outgrown them.<\/p>\n

\u201cFirst-time parents face a lot of unknowns.<\/p>\n

\u201cDoing some financial planning when you find out you\u2019re pregnant may help to reduce some of the stresses after the baby is born,\u201d said Marlies.<\/p>\n

Hav<\/strong>e a story?<\/strong><\/p>\n

Contact the newsroom by emailing: Melissa Hart (Editor)\u00a0<\/span>germistoncitynews@caxton.co.za,<\/a>\u00a0<\/strong>Leigh Hodgson (News Editor)\u00a0<\/span>leighh@caxton.co.za\u00a0<\/a><\/strong>or Busi Vilakazi (Journalist)\u00a0busiv@caxton.co.za.<\/strong><\/a><\/p>\n

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