No one prepares you for parenting. There is no manual that teaches you what you should do and what you should not. While you are building your family and trying to get everything in order, the financial commitments will also start to increase. This is a very natural progression and if you do not get your financial goals in order, you could be mounting up in debts and not have anything else left for the future.
Parents still ignorant
Although a lot has been said about financial responsibilities and sustainability for Malaysian parents, a lot are still unaware of its importance. This is largely due to the fact that many parents believe that they will learn as they go along. This is very true in terms of issues like disciplining the child, schooling and such, but when it comes to money management, you need to start planning early. Below are some of the best advice for the Malaysian parent.
Get insurance early
It is never too early to insure your financial commitments for your family. The thing about accidents is that no one knows when it could happen. What if something happened to you and you can no longer provide financial support to your family? You need to insure your income so that your family need not to be burdened with your loans and debts. More importantly, insure your home loan so that they will always have a roof over their heads (even if you are no longer around).
Education fund for your kids
Whether you have 1 or a few kids, start early in establishing an education fund(s). While you are able to provide this since you are still working, you need to think about what might happen 15 to 20 years down the road. You would be older or you could be at the retirement age. What about retrenchments and economic crises? If any of these are to occur, at least your child’s education is taken care of.
Check and update your beneficiaries’ info
A lot of people take this for granted thinking that they have time. More notably when you are a new parent, you tend to focus on the so-called important things. It is more crucial now that you have a newborn that you update your beneficiaries. If you are going to have more children, then you need to update this then. This deals with your insurance policies, your EPF or even your company’s insurance coverage. What you want to get out of this is, should anything happen to you, your family (kids and spouse) can get that amount without much hassle. If you have not updated your beneficiaries’ details, the process can be long and very complicated. In the meantime, it could mean your family members need to be under stress to fulfill the financial obligations.