Mother’s Day is a very important day for most. Mothers are undoubtedly the most important asset in the family. Mothers provide, nurture and support with endless commitment giving their all even when they don’t have much left. How do you put a value on them when they are simply priceless. There are, however, some important financial aspects which should be in place which Moms should be aware of:
Get involved in the family’s financial plan
Understand the details of what provisions there are should a life-changing event occurs. Don’t leave it up to the spouse and find out the hard way if something happens. You will want to be assured that you know the financial implications and should adjust things whilst you can.
Is the family protected with sufficient life assurance?
If Mom passed away leaving behind dependent children there could be serious financial ramifications for the family. Who will mind the children? If Mom contributed to the household income how will this be replaced? If Mom is dependent on Hubby and he passes on this could be financially disastrous. The amount of life assurance should cover all outstanding debts and leave behind enough to get through the months to maintain your monthly income needs until the children are off your hands.
Have you provided enough for education?
Provisions for education should be in line with your affordability. However, many families sacrifice a lot financially to put their kids through school leaving them in more debt than they can handle. Ideally, you should have a nest egg to subsidise your education costs. There are many ways to do this. My preferred is to have excess cash in your access bond which is available for the school fees and other must have. The bond provides liquidity and whilst there is excess you are paying off the bond in a shorter time.
Ultimately, a family that is well provided for is a happy one. Happy, happy Mother’s Day.