TomorrowMakers

• Invest in liquid funds, short-term debt funds, sweep-in fixed deposits
• Buy a health insurance policy for the baby or include him/her in your floater insurance plan
• Revisit and restructure your debts for easy repayment

If you're a mom-to-be, planning for your child's future and financial security becomes imperative even before the baby arrives. Most would-be parents overlook the impact of childbirth on their finances, especially during the early stages of parenthood. However, you must prepare financially to welcome your newborn and provide them with a secure future.

So this Mother's Day, take a pledge to gift your child a financially secure future with these financial tips:

1. Financial assessment before the baby arrives

You’ll need money for babycare during:

• Prenatal,
• Hospitalisation and
• Postnatal period

So, assess your financial needs during these three phases. Start arranging for adequate funds so that you can take care of your baby even before he/she is born. 

You may decide to live on one spouse's income. Keep the other spouse's income to create a child contingency fund, which will take care of your child's needs during these three phases of childbirth. 

You may invest this fund in the following:

• Liquid funds
• Short-term debt funds
• Sweep-in fixed deposits

This will help your fund grow instead of being idle. You can withdraw from these funds whenever you want.

Also Read: 7 Entrepreneur And Celebrity Mothers Share Their Secrets To Success

2. Spend prudently

You can make lifestyle changes to increase your disposable income. Once your child arrives, you'll need more money than usual to take care of your baby. You may start by reducing your dine-outs or impulsive buying for at least a few months after childbirth. 

3. Revisit your debts

Assess how much debt you have. Get hold of your debt and try to pay them off. You may also restructure them. This will help you create a childcare corpus easily without any additional stress.

Also Read: Show Your Mother You Care This Mother's Day And Invest In Her Future

4. Start financial planning to secure your child’s future

Your child needs a quality life, nutrition, health, and education to grow. Start financial planning early to provide your child with a better life and a secure financial future. Start long-term investments in mutual funds (for higher education and marriage), child care insurance plans, health insurance, etc.

5. Review insurance policies

You should also check all your insurance policies (both health and life insurance). Check whether your insurer provides maternity benefits. Once your child is born, buy a health insurance policy for the baby or include him/her in your floater insurance plan.

Conclusion

This Mother's Day, start planning for your child's bright future by preparing yourself financially to arrange everything you need for your newborn. Start investing in financial instruments, such as mutual funds, equities, fixed deposits, etc., that best suit your needs and will help you gift your child a financially secure future. Happy Mother's Day!