Mothers, whether they’re the caretakers, the breadwinners, or both, face a unique set of financial challenges. I have launched a Facebook Group : https://www.facebook.com/groups/financialadviceformums/ to create a community where I can share my advice with fellow mothers and show you how to become financially independent and provide protection for your family.
1. Make a Will: Making a will is the only way you can be absolutely certain your wishes will be carried out after you die. You choose who gets what. A will allows you to appoint someone trustworthy and capable to sort out your affairs after you die. You choose an ‘executor‘ who takes on this responsibility. If you have young children, you can choose a guardian to look after them if you and your husband, or partner die together. You can also appoint a trustee to manage the financial side of things for the benefit of your children.
2. Check your Life Insurance Policy: You may have taken out a Life Insurance policy with your mortgage and perhaps some extra life cover to cover funeral costs and leave for your estate but now that you're a mum you need to consider your children and make sure they are sufficiently covered if you should die. Your Financial Advisor can help calculate your shortfall and will usually recommend putting the cover in place for a term to cover you until your youngest child is no longer dependent on you.
3. Invest Your Child Benefit: €140 per month can disappear quickly in your account when it comes to mortgage repayments, bills and groceries. But if you can catch it before its spent and put it into a long term investment for your children it will be great piece of mind and ideal for college fund etc.
4. Build an Emergency Fund: this is a rainy day fund and a useful tool to protect your finances against unexpected events, like a job loss, car trouble or medical emergency. We recommend at least 3 months salary in a short term savings tool to help you avoid getting into debt when the unexpected happens.
5. Save for Retirement: Throughout their lives, women are more likely than men to work in part-time jobs that don’t qualify for a retirement plan, and also interrupt their careers to take care of family responsibilities. Ultimately, fewer years of work lead to less retirement savings.
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