Financial planning tips for new parents

As a new mother you have plenty to adjust to, but while you are on maternity leave, it makes sense to review your personal finances. Here’s some advice to take into consideration.


Despite the many challenges that lockdown presents, becoming a new parent is such a joyful and a great blessing.

Of course, as a new mother you have plenty to adjust to, but while you are on maternity leave, it makes sense to review your personal finances, too. Taking the time to ensure you and your newborn are adequately provided for will give you some peace of mind while you are adapting to sleepless nights and your many new responsibilities.

ALSO SEE: Expert advice to help you budget for baby

Getting started

Firstly, check that you and your partner are already receiving all the benefits to which you are entitled. Some companies offer lengthy paid maternity leave, flexible working hours and other perks in order to recruit and keep outstanding staff.

If your circumstances are different, then according to South African labour law, mothers are entitled to 4 months of unpaid maternity leave. If you have been a UIF contributor, you are eligible to claim for a maternity benefit of up to 58% of your remuneration, depending on how much you have been earning. Also, the parental leave period increased from 3 to 10 days earlier this year, so your partner may be able to spend more time with the baby.

Given the current lockdown conditions, check which UIF documents and forms you need to submit by clicking here.

Sarah Nicholson, commercial manager of the personal finance website Justmoney, and a mom of 2 boys herself, suggests you run through this handy checklist after welcoming your new little bundle of joy into your home.

Draw up or amend your will

This may not be a pleasant topic, but it is one of the most important things each parent needs to attend to. You will need to specify who will inherit your estate and how you would like your assets to be allocated. You also need to choose an executor, who will make sure your wishes are carried out.

ALSO SEE: The importance of a will for your children

Choosing a guardian for your child is another major consideration, as you will naturally want someone who will be able to raise your child in a way you would approve of. This means taking into account their values, parenting style, and whether they have sufficient money and physical stamina to do so.

ALSO SEE: The difference between a godparent and a legal guardian

Update insurance

Again, this may be an uncomfortable subject, but it’s even worse to think about not being able to care for your child and leaving your partner with the financial burden of doing so on their own. Both parents need insurance, because even if one is a stay-at-home parent, paying for someone else to take care of childcare, housekeeping, and administration certainly adds up. There are various types of life products available, from those that pay out a lump sum if a parent dies, to an income protection plan that covers you if you are disabled and unable to work.

To get a life cover quote click here.

To get a disability cover quote click here.

Save for education

Given that you will be putting away money for the long term, consider various savings and investment options. You will want a package that beats inflation; does not incur high costs; takes your tax situation into account; and probably allows access to the funds should you need them.

For a comprehensive Justmoney article on what a tertiary education costs, and various saving and investment options, click here.

Maximise medical aid

Check your policy, taking time to understand the rules and benefits, which may have changed since you first signed up. There could be a baby programme, post-birth benefits, and product discounts.

ALSO SEE: Top medical aid options if you are planning a family

Gear up for less

While nothing is cuter than designer babywear, resist the temptation to indulge in clothing your little angel will soon outgrow. Gently used babywear, toys, prams, and car seats can be sourced online or through social media groups.

“There is so much pressure to be a ‘good’ parent,” says Sarah. “You have probably been inundated with offers for everything from a state-of-the-art baby monitor with room temperature tracking to an educational toy guaranteed to stimulate your child’s brain development. Aim to buy the basics initially, and then purchase only what you need, as you need it. With lockdown, many people have realised how much they have saved without eating out and ordering in. Try to keep up these new habits. Saving even a small amount every month will add up to a tidy sum.”

ALSO SEE: The 10 must-haves for baby and the 10 you don’t really need

You can also check out the ‘Deals’ tab on Justmoney here. Listings currently include a baby shop offering up to 75% discounts while stocks last; earning back up to 30% of your spend in cash when you shop for health and beauty products at a pharmaceutical chain; and a free subscription to an online platform where children can learn anything from drawing to cooking.

More about Justmoney:

Established 10 years ago, Justmoney provides busy and digital-savvy South Africans with easy online access to financial information, money management tools, products and services.  It partners with trusted financial brands and allows you to make informed decisions easily, safely and conveniently.

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