Letitia Watson believes a little planning goes a long way to ensuring your finances have fewer stretch-marks than your baby bump
Our first little girl was definitely not a gatecrasher. She was the best thing that happened to us. But initially, the realisation of my body, life and finances stretching beyond borders was close to terrifying.
I remember thinking that all our restaurant (and my coffee shop) outings would probably be spent on baby food in future. (In the end it did not really matter, as I was nauseous most of my pregnancy.
It all felt so overwhelming. My husband’s first concern was that he had to buy a bigger car. Expenditure on ourselves had to shrink considerably; we didn’t want to go digging into our savings for daily expenses on the baby. New parents will know the overwhelming choice of products, no to mention prices, when buying a good quality cot, stroller and other baby care equipment.
I had three months of paid maternity leave, but I wanted to take six months – where did the UIF fit into this and how would it affect our monthly budget? We did not know where to start calculating the financial impact on our lives. Yes, we knew there would be many day-to-day expenses, but now we had to change our long-term strategy. We had to create a healthy and secure future for our child.
In the short term we had a good hospital plan with maternity benefits, but we knew we should change it to a more comprehensive (and expensive) option once the baby arrived. This was also the time when life cover started to make sense for me.
Luckily we were settled, and had already bought a house and had other investments. Our savings for exploring the world could now instead cover unpredicted costs and other luxuries such as having a private room in the maternity ward that our medical scheme did not cover. That doesn’t mean we made great financial decisions. We are still trapped in an education investment that was not the best choice (although it could have worked for others), but we didn’t know any better. When our second child came, we were much more informed.
So what have I learnt?
# It is great to have savings (and for those who are despairingly wondering where your help will come from, it is not so difficult to start);
# The expected costs are frightening in the beginning, but with careful planning it becomes part of your lifestyle – it is manageable;
# Don’t be bullied into buying financial products that sound good without getting more information;
# There is help out there to understand UIF benefits;
# And with enough patience you can even figure out your company’s policy on maternity leave.
Most importantly, having children does not mean the end of your financial freedom. Of course your friends without kids will be able to spend much more on themselves, but if you plan properly you can have an even better lifestyle in the long run.
So take a deep breath. Relax. It is a great time to gain control of your financial life. And its even possible to go travelling with kids en suite!
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