Moms And Money

Becoming a mom is a pivotal point in a woman’s life journey. There are many aspects of a woman’s life that needs to be adjusted with a child coming along.

May 8, 2021

Becoming a mom is a pivotal point in a woman’s life journey. There are many aspects of a woman’s life that needs to be adjusted with a child coming along.

Our moms are our first superheroes. They sacrifice and give selflessly, juggling the myriad of responsibilities - work, family, child-rearing and housekeeping.

When one becomes a mother, work will be impacted in one way or another. She has to either work less hours, take on more family-friendly jobs, or give up her career to be a stay-at-home mum.

As much as we appreciate moms giving their all, let us not forget the importance of self care and planning for the family’s financial future. We no longer live in an economy where relying on the husband’s income is a foolproof plan, nor should children be viewed as a source for retirement funds.

Here we will explore some of the Financial Implications of Motherhood.

Single Income VS Dual Income

Since the 1960s, there has been a cultural shift where women are increasingly becoming a part of the workforce. By the 1970s, the percentage of dual-income households with children under 18 had surpassed that in the 1960s and this increase persisted and peaked in 1999 at 60 percent of female labor force participation rate.

While this is good for the economy, the downside is that it becomes more difficult for parents to find time for their children and strike a balance between family and work.

The primary advantage for the economy because more dual-income families mean more productivity in labor markets.

The other economic advantage is that more labor demand is created since parents will not have much time or energy left to deal with tasks like house chores and childcare or babysitting, hence needing to hire people to fill these positions.

From the perspective of families, dual income means more financial stability. Due to various challenges such as our rising cost of living, a greater proportion of our generation would begin to adopt the dual-income family model and share the financial burden.

No matter Single Income or Dual Income, both types of family models have their own benefits. None is better than the other.

Life Expectancy Of Man VS Woman

Did you know? Women actually have a biological advantage over males - they have longer life expectancy ie. they live longer than men by average 6-8 years, which is quite a significant difference.

According to Singapore Statistics, the life expectancy at birth of males is 81.4 whereas the life expectancy of females is 85.7.

So, because a wife is more likely than her husband to need to handle financial decisions alone at some point, it is best that she stays fully up to speed throughout the marriage and through her motherhood.

Mars And Venus

You may have heard the popular saying: Men are from Mars and Women are from Venus.

Men and women are different by design. Moms and dads generally have different roles and responsibilities in the family.

The gender roles affect how families manage family and work responsibilities:

Between many married couples, especially more so in Asian societies, the wife normally assumes the role of the homemaker while the husband would be the breadwinner. Women usually do the care-giving while men earn money and handle the finances.

Women are designed to be more focused on security, while men are, in general, more focused on action.

Women tend to operate based on their emotions more and men are more task-oriented. Keep in mind that this is not for us to be misogynistic but to understand the differences. There’s no “better” sex. With this difference, men are usually confused when women need their emotional availability and seek to be understood on a deeper level.

Since men are more task-oriented, this makes them much faster at decision making and naturally pushes them to assume a leadership position in the relationship. They focus on completing tasks and on the end result.

While such traits help men to take the lead on making financial decisions, it can also be negative because they can potentially make hasty, risky financial decisions and develop bad financial habits that are difficult to change. So when it comes to family finances, it’s best that both wife and husband discuss such things.

Cost And Responsibility

With great power comes great responsibility.

With the addition to the family, moms and dads will have additional cost and responsibility.

Babies increase our overall cost of living. Babies need clothes, a crib, food, diapers, wipes, and so much more. And these are just the everyday expenses.

We all know about the broad range of government subsidies available that total up to $150,000 per child. However, it’s important for parents to know that despite these subsidies, raising a child in a metropolitan city like Singapore is expensive and you’ll need more than those subsidies.

Of course, the amount we spend on our children would vary depending on the type of education and lifestyle we decide to give them. It really isn’t that much different from the costs of living we incur as adults.

Based on Seedly, an average estimated cost of raising a child is $285,468.

With added responsibility, moms and dads also have a greater need for life insurance to protect our family in the event that we are no longer around.

We all hope that life carries on without accident or incident for many, many years. But as a mom, you’ve now got tiny humans who depend on you. And that means creating a safety net that protects your kids no matter what.

Creating an effective family emergency plan requires purchasing sufficient life insurance, naming guardians for your kids in a will, and keeping your finances organized so you or a loved one could handle any life upheaval without the additional stress of wondering when and how to pay the utility bill or how to contact your insurance companies.

Education And Retirement

The best gift that any moms and dads can give to their child is adequate funds for their retirement. If parents are able to balance their own retirement plans with caring for children, the kids would be able to enjoy the fruits of their labor and discipline in their adulthood.

While it is important to plan for our children’s education, it is equally essential for us to be financially independent and prudent enough not to overspend on our children, so we have sufficient funds for our own retirement.

​Did you know that Singaporeans are living longer? In fact, 1 in 2 Singaporeans aged 65 today will live beyond 85 while 1 in 3 will live beyond 90! What does this mean for you and how will it affect your retirement plans? Speak to us now to find out how you can mitigate the risks of longevity.

The financial implications of motherhood means moms must adjust their finances to fit the needs of their growing family whether they are a mom in the labor force or a stay-at-home mom. And the most important key is to have a clear idea about their goals and objectives

Moms may seem superhuman, but actually, they're regular people. Which means that whatever moms have inside that enables them to work so hard and give so much, it's right there inside of you, too. Make your mom happy: when things get tough, reach down deep and show her that you care.

Happy Mothers’ Day to all the super moms!

Junwen Chen

My mission is to educate and empower people to design their lives so that they can live in abundance.

Let me partner with you, to design and nurture your dreams and ultimate life goals.

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