Financial Planning for Stay-at-Home Parents

5 tips from SpotMe to be financially prepared and helpful when you’re about to quit job and be a stay-at-home parent.

How to contribute financially at home when you’re busy taking care of your baby.

So, a baby is on the way to your family. Congratulations, your family is growing! You have so much love to give for your little one… and so much new responsibility.

Have you and your partner talked about the baby care duty? Is either one of you going to stay at home for the baby? If the answer is yes, read on to give yourself a clue about financial planning for a stay-at-home parent, before the stork delivery comes.

Being financially helpful at home
Taking care of a baby is not an easy task, so don’t punish yourself for not making money for the family. Even though you’re not actually making money, it doesn’t mean that you can’t contribute financially. By being a stay-at-home parent, you can commit yourself into economizing family expenses. Cut this bill and that bill. Make budgets for food and daily needs. You will see over a period of time how your family expenses lower down, and your family saving grow bigger.

Reviewing family finances
Emergency fund, monthly savings, food budget, baby budget, and many more – by staying home, you will understand more about your family finances. Hence, you will know which expense can be cut and which can be complemented with something of the same value but lower cost.

Maintaining your skills
Maybe when your kid starts school, or maybe later when they are off to college, you plan to return to the working life. Maybe now you don’t think you will, but who knows? You might change your mind as your baby grows up. Either way, it is important to keep you job skills alive while you’re being a stay-at-home parent. Take a crash course to polish your skills every once in a while. Or try learning something new – financing, investment, painting, baking. Who knows you might find something that you love and can benefit you in the long run?

Working from home
If money is tight and you both want to keep working, but can’t afford daycare, you can try working from home. Find freelance jobs online that don’t take too much of your time, like 3-4 hours per day. This way, you get to take care of your baby without having to pinch pennies.

Retirement and assets
If you’re married, your spouse’s super also counts as an asset and you both should be the owners of them. If the worst thing happened and you and your spouse separated, you would still be entitled to part of the super and your other joint assets.

Leaving your stable job behind to become a stay-at-home parent might seem like a daunting, indeterminate future. But with preparation and commitment from both you and your partner, it will turn out that being one is not that bad. Actually, it’s one of the most wonderful things that you get to see every first major step in your baby’s life. Welcome to parenthood!

Leave a Reply

Your email address will not be published. Required fields are marked *