Money Moves to Make Before Becoming a Mom

We’ve worked with many clients over the years who are planning to start families. It’s an exciting time in life, but also one that requires some financial preparation. Based on our experience, here are some important money moves to make before taking the leap into motherhood.

1. Review Your Budget Closely

One of the first things we advise ladies to do is take a very close look at their current income and expenses. Tracking your spending for a few months using our budget planner worksheet or budgeting apps can reveal areas where you may be able to cut back, even modestly, in order to free up more cash that can be allocated towards savings or future child-related costs.

You’ll also want to identify any upcoming big-ticket expenses you’ll need to plan for, like buying a family car, moving to a larger home, or childcare once you return to work. Having a clear picture of your cash flow will enable you to make adjustments where needed.

2. Build Up Your Emergency Savings Fund

Picture this: your little one decides to make a grand entrance a month or two early. Cue hospital bills! That’s why an emergency fund is your financial superhero.

One of the most important recommendations we make to our clients is to build up a strong emergency fund with 6–12 months of living expenses before having a child. Pregnancy and childbirth can bring many surprise costs, from medical bills to baby supplies and gear.

Having robust emergency savings is also crucial in case you lose your job or income for an extended period of time. As a new mom, you may prefer to take unpaid maternity leave or work part-time temporarily.

3. Get Insurance Coverage

If you plan to be the family’s main breadwinner, having life, health, and disability insurance in place can provide essential income protection. We advise our clients to secure coverage before pregnancy when pre-existing conditions can complicate the process.

Because, let’s face it, pregnancy is an adventure, and sometimes Mother Nature throws in a few unexpected twists. Make sure you’re covered for prenatal care, delivery, and those magical postnatal checkups. Don’t be afraid to shop around and compare policies; you wouldn’t buy a stroller without comparing features, right?

Now for the pièce de résistance: life insurance. It’s not the most cheerful topic, but think of it as a shield protecting your loved ones if, well, the unthinkable happens. Choose a term life policy that fits your budget and gives your family peace of mind.

4. Pay Down High-Interest Debts Aggressively

Carrying credit card balances, student loans, or personal debts can strain your budget quickly when a baby enters the picture. Try to pay off or pay down high-interest debts before getting pregnant. Explore consolidating or transferring balances to lower-rate options.

5. Invest for the Future

It’s never too early to start investing, especially when you have a long runway until retirement, but trust us, it sneaks up faster than you think. Don’t put your retirement savings on hold just because you’re building a family; adjust those SACCO contributions. The earlier you start, the sweeter the nest egg will be later.

And speaking of sweet nests, let’s talk education. Those tiny humans will soon be grasping pencils and dreaming of university. Start small with tax-advantaged savings options like M-Akiba or education plans. Every little bit counts, and hey, maybe your mini-Einstein will win a scholarship and buy you that beach house in Barbados you’ve always dreamt of!

But don’t just save for the kiddo, mama. Think about building wealth for yourself too! Seek guidance on the best investing strategies for your situation, whether index funds, target-date retirement funds, or working with a financial advisor (like yours truly).

Remember, financial independence is a gift to yourself.

6. Update Key Financial Documents

Having proper legal documents in place provides stability for your new family. Review your will, trusts, healthcare proxy, and power of attorney to make sure they are updated. Name guardians for your children in case of an unforeseen event.

Also, be sure to add your child as a beneficiary on applicable accounts, like life insurance policies, retirement accounts, and investment accounts. This ensures assets pass directly to them in the future.

Enjoy the Journey

Having children brings immense joy, but also financial responsibility.

Getting your money matters in order before the little ones arrive can reduce stress and provide stability during this new chapter. Taking the right steps ahead of time, like building savings, reducing debt, securing insurance coverage, and investing for the future, helps set up both you and your growing family for success.

If you still have any questions on how to financially prepare for motherhood, our team of experienced financial advisors is more than happy to guide you. Wishing you lots of happiness on the journey ahead!


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