Planning for the future

You may like to start to think now about the financial resources you will need in the future to support your family and yourself.

Having a budget now may give you a clear picture of what you need to live on. If you are considering returning to work, balance your income with costs such as transport and childcare and any subsidy entitlements.
 Consider saving for the long term. Saving small amounts now can make a huge difference long term because interest earns interest. For example, if you save $40 a week, after 40 years you will have about $400,000, assuming you earn interest at seven per cent.

KiwiSaver is a voluntary savings initiative where the government kick-starts your retirement savings and also provides other benefits. Ask your employer for information about KiwiSaver.

Set financial goals, such as clearing debt and paying off a mortgage, and work towards them.

Protecting your family

With the birth of a new baby you may like to consider how to protect your family financially in the future.

This may include:

• talking to family, whānau and friends about who will care for your child if you are unable to
• making a will and appointing guardians to care for your children if you die.

Look at your life insurance and income insurance. Not everyone can afford insurance and some parents may feel it is not right for them; perhaps you know that your extended family/whānau will care for your child. The important thing is to consider what would happen if you weren’t able to care for your child.

If you are struggling with life and income insurance payments, you can often take an ‘insurance holiday’ which is usually a far better option than cancelling the insurance policy, because you may find you are offered the new policy on less advantageous terms, or worse, not offered the policy at all. Look at your car, home and contents insurance cover to ensure that everything is appropriately covered.

If you need advice about your insurances, we strongly suggest that you get help from a qualified adviser who looks at your actual needs, rather than suggesting a set amount of cover that may be too expensive.

If you have a health insurance policy, you should decide if your baby is to be included. If your child develops an illness before they are named on the policy this illness may be excluded as a pre-existing condition.