It is estimated that the average stay-at-home mom works around 97 hours per week. Without them, homes could fall apart in a day. Whether you are a stay at home parent by choice or due to circumstances, planning for the financial future is critical when it comes to protecting those you love.
Providing financial security
The reality is that being a stay at home parent and juggling a job at the same time can be near impossible. Being a full-time parent is a job on its own with many hours put into taking care and protecting your loved ones. However, the reality is that the loss of such a crucial figure in the home can have a drastic impact on all fronts, especially financially.
Who will make sure that the daily expenses are taken care of, that your child receives the best care and education and that they grow up in an environment where they will not be in want of basic things? Therefore, planning is pivotal to all families looking to create a financial safety net.
Life cover is a starting point
Death is a thought that no parent wants to think of, especially when their child is still young. However, it is crucial to think of what will happen to your financial future along with your child's should you become terminally ill, disabled or even die. This is why having life cover is crucial for any parent. Life cover is a way to safeguard your financial future in the event where you become terminally ill or pass on.
Adding your child as a beneficiary means that they will be able to use the payout to take care of daily living expenses, educational costs, paying off any debt you may have accumulated and more. It is recommended that both spouses have life insurance policies. It will never replace the love and effort of a stay at home parent, but it can give you peace of mind knowing that your loved ones financial future is protected.
Financial management for your home
According to a survey by PWC, the responsibility of having to take care of dependents, parents and heading the household finances that take as much as 67% of their income to cover expenses, has led to women finding ways to invest and grow their finances to ensure that their future finances are protected to make ends meet.
Financial management becomes the backbone to many stay at home parents that juggle daily expenses, along with ways to protect whatever income they have. Having a financial plan through budgeting, cutting back on things that you don’t really need, and investing are some of the common ways in which to keep the home afloat. However, speaking to a financial advisor can allow parents to tailor their finances to their specific situation without putting their financial future at risk.