New parent? Here’s your family’s financial checklist

When you’re a new parent with a full plate of responsibilities and lots of new-baby expenses, getting your financial affairs in order is probably the last thing on your to-do list. Surely it’s worth having all the financial stuff sorted so that when something goes wrong, your family isn’t left in a crisis?

There are some things you can do now to protect your family financially for the future. These will truly be some of the biggest “gifts” you can give to them.

1. Update your will

If you have a will, you get to decide what happens to your assets when you die. If you don’t do this, regardless of your wealth or assets, they’ll be allocated according to the state’s law. It’s also essential to choose a legal guardian for minority children if anything happens to you and your partner. Don’t leave it up to the courts to decide where your kids will go. You can chat to Hero Life for guidance on how to set up a will and what to include. It’s useful speaking to an expert so that they can talk you through the technicalities and clauses that you need to include in your will, depending on your circumstances.

“Many people are intimidated by getting life insurance, but it doesn’t have to be that complex.”

2. Start saving for your child’s university education as soon as possible

Your kids will be financially dependent on you for at least the first 20 years of their lives. It is estimated that parents who send their children to public schools and pay for a three-year university degree, will spend on average about R1.2 million per child in today’s financial terms – that figure doubles if your child goes to a private school. By putting away for university now, you save your child the burden of paying back university loans, which will affect their own financial wellness as adults. To find out more about an education policy that suits you and that will have a decent payoff, speak to Hero Life who will best guide you.

3. Get life insurance

If anything happens to you in the next week, where will your family’s money come from? Very few young parents have enough savings in the bank to ensure that their children have the financial means to finish school and continue their education as needed. By having life insurance in place, you protect not only your family’s future but your children’s education too.

Many people are intimidated by getting life insurance, but it doesn’t have to be that complex. Hero Life insurance is experienced in helping young parents with the basics and havs designed life insurance specifically for them by removing the middleman, saving you on admin and costs. You can start the process from the convenience of your computer and you can pay as little as R99 per month for life cover worth R500 000; R369 a month for life cover worth R2.5 million, or R569 per month for R4 million life cover. Or you can choose the level cover that suits your needs and your pocket. And don’t worry, there will always be help available online and through WhatsApp if you have questions.

For more information, visit www.herolife.co.za for more info or find them on Facebook. You can also WhatsApp your financial questions to them on +27 73 916 9367.

Also read:

Savings and finances: An important part of your parenting checklist