HSBC: Considering Being A Stay-At-Home Mom
[Advice column by HSBC Bermuda]
We just had our first child and I am debating if I should return to work or be a stay at home mom. How do I determine if this is financially realistic for our family?
Becoming a parent is a huge financial responsibility as well as a lifestyle change. Before making a final decision calculate what your new income will be, and think about how your costs will change, and what adjustments you can make. You can book a free Financial Planning appointment* to help evaluate your options, but if you prefer to do it on your own consider the following:
When one parent stays at home
Choosing to become a one-income family can be challenging for even the most frugal-minded couples, but you can make the transition smoother by realistically anticipating the adjustments you will have to make.
Create a budget to get a snapshot of your spending habits each month, then see where adjustments can be made. Check what your budget would be with different income levels [one vs two people working], as well different expenses, and look at how you can cut back costs. Lots of minor savings on non-essential items can add up. Think about what is a must-have and what is a luxury, such as buying coffees and dining out.
It is also recommended that you have a trial run. Try spending a month living on one income. This will give you an idea if it is realistic for your family.
When both parents return to work
If you are absolutely sure you do not want to return to work, but you can’t afford not to, talk to your employer. Many employers provide flexible working opportunities which may allow you to achieve a better work-life balance while still earning an income. Some of your options may include working from home, job sharing or working part-time.
Free Financial Planning with HSBC
If you are uncertain how to develop a financial plan on your own, HSBC can help! Our approach takes you through the complete financial planning process, at no cost to you. We’ll work with you to understand your particular circumstances and your financial ambitions. From there, we provide you with solutions on how to manage, grow and protect your savings to achieve your goals.
To make a free Financial Planning appointment visit www.hsbc.bm/planning or by calling 299-5959.
Issued by HSBC Bank Bermuda Limited which is licensed to conduct Banking and Investment Business by the Bermuda Monetary Authority.
