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Happy Mother’s Day 2022: Happy Mothers Day! Financial planning is a must before you embark


Becoming a mother is one of the most joyous experiences in a woman’s life. A joy that should not be clouded by financial worries. To live in this competitive world, it is important to take charge of your finances before you embark on motherhood.

Motherhood can be challenging, and you need to be financially prepared at all life stages to secure your and your child’s future. Managing finances effectively is an integral part of being a mother.

Expected and unexpected needs crop up prior to, during and after becoming a mother for which one needs to be prepared.

Financial planning before family planning

In earlier times, a system of joint families was prevalent in our society. Mothers used to receive support from their elders for their finances.

As the number of nuclear families increase, more young couples emerge with a desire to avoid burdening their elderly parents.

Hence, it is suggested to begin investing in parenthood as soon as you get married. Starting financial planning after your marriage is vital.

Financial planning helps you achieve your life goals. It serves as a road map as you travel through life.

It essentially aids you in maintaining control over your income, expenses, and investments so that you manage your finances and reach your goal.

Plan for Expenses

Planning for expenses as a practice helps you limit your spending. You may start by making a list of all the expenses and planning accordingly.

Allocating income in a systematic way will assist in building an emergency fund or Maternity Fund.

Here are some expenses you need to consider:

1. Pregnancy-related expenses

Bills rise even before your baby arrives. You may have to pay for doctor’s visits and testing even before pregnancy if they are required. Setting up your baby’s room or making your home baby-proof, purchasing appropriate clothing and toys for your baby prior to giving birth all add as expenses pre-birth.

All these purchased goods are prone to be required readily after you bring home your baby. Once you are home, settling bills like those associated with hospitalization would also have to be handled.

2. Post-pregnancy Expenses

As is expected, expenses will increase post-pregnancy. These may include further medical check-ups, treatments, vaccinations of the baby, etc. It actually doesn’t end here — it starts from here.

Raising a child is no child’s play. As we would be taking into account expenses such as a child’s education, child’s health checkup expenses, and other needs of the child, they differ from families.

It may all seem intimidating at first, but there are ways and means to navigate through these changes.

What you must do?

Many working women quit their jobs, and some never return post their leaves, as the responsibilities in their lives grow. If you’re a working woman, check with your employer about paid maternity leave; in India, it’s normally 26 weeks, and you and your partner can also take parental leave.

What about women who are unable to work after childbirth?

Loss of income for women due to motherhood is a serious issue and cannot be brushed under the carpet. Hence women and their partners must prepare for a time when they may have to depend on only a single source of income.

A married or a live-in couple may be able to manage this. They may need to rely on a combination of passive income from deposits and partners, parents, or some side hustle.

Get insurance in place

Other than maternity needs you are bound to have other expenses like groceries, and mandatory payments to look after post pregnancy.

So, spending everything from pocket will be costly as medical expenses are rising day by day. So that is when the Health Insurance Policy comes to the rescue.

For this, the Maternity benefit comes as an add-on benefit or as a rider with an existing health insurance policy.

These would cover pre and post-delivery hospitalization expenses, normal and C-section deliveries, expenses related to medical treatment of the newborn, vaccination expenses for the newborn, etc. Investing in a comprehensive maternity policy would certainly make sense.

Whenever you buy health insurance, read the policy documents and check what all maternity period expenses are covered.

In this way, Maternity Insurance will help you save on your pocket and reduce financial stress during pregnancy. If you are left with extra funds you should make an investment.

How investment made before motherhood will help you later

After building an emergency or your maternity fund. Start making a regular investment that will yield regular income during your maternity period.

During the maternity period, you might not be able to work and your regular income will stop.

For this, you can start your investment in a mutual fund via the SIP (Systematic Investment Plan) option or by investing in a Lump Sum amount.

During the maternity period, you can then avail SWP (Systematic Withdrawal Plan) option from the same investment to receive a regular income.

Also, with the investment amount you can start planning for your child’s future, by investing small amounts regularly.

Start investing today, to receive regular income during the maternity period!

Proper Financial Planning in place will lead to a smooth journey towards and after the pregnancy. The journey of parenthood is one that is immensely demanding yet very fulfilling.

Making and consistently reviewing it for new milestones can make the journey exceptionally rewarding.

(The writer is the founder of LXME – India’s first financial platform for women)

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)



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