On top of weekly budgeting, it’s a good idea to set and achieve long-term financial goals, such as paying off debt, or making investments for the future. Now is a good time to think about the financial resources you will need in the future, and how to protect these resources and family.
You need to think about who will care for your child if you can’t. Talk to friends and family members, then make a Will if you don’t already have one. Make sure your Will names guardians to care for your child or children. For more information on making a Will, visit Consumer’s website.
You may wish to consider whether the following types of insurance are right for your family:
Life insurance provides a payment when the person with cover dies; income protection insurance provides payments when a person is unable to work and earn income. Not everyone can afford these insurances, but it’s important to look into if you’re not sure your family can be cared for if you’re gone.
If you are struggling with life and income insurance payments, you can often take an ‘insurance holiday’. This is usually a far better option than cancelling the insurance policy, because if you decide to take out a new policy, the conditions may be worse or you may be unable to get cover.
If you have a health insurance policy, you should decide if your child 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.
If you need advice about your insurances, we strongly suggest that you get help from a qualified adviser who looks at your actual needs.
For more information about the different types of insurance, visit the Sorted website.
Saving small amounts now can make a huge difference in the long term. KiwiSaver is a voluntary savings initiative where the government kick-starts your retirement savings and also provides other benefits.
If you’re employed, your employer will also contribute to your savings. Ask your employer for information about KiwiSaver, or visit the KiwiSaver website.