Updated: May 4, 2020 1:11:21 pm
If you belong to the generation born between the mid-80s and late-90s, you are probably witnessing the best of times when it comes to being face-to-face with changing technology. And, it won’t be wrong to say that it is millennial moms who have embraced the changing environment head-on.
Today, millennial moms are much savvier, more experienced and more mature in handling situations, especially with matters related to money. From managing work-life balance to taking decisions on-the-go, they make things look easier than they are. From shopping online, booking online movie tickets to buying insurance or making investments from digital devices, you are equally adept at doing financial transactions at the click of a mouse or from a mobile phone.
With changing times, millennial moms have shed the traditional approach of meeting predetermined milestones in their lives. Their life choices are different and so are the methods to achieve them. Women always wait to be more financially independent, but millennial moms are actually practicing it. They’re using short-term investment products to give them better tax-efficient returns and easy liquidity of funds whenever they would need them.
As a millennial mom, you’re probably nodding along in agreement to all those statements. But the thing is, as savvy as you are, you need to pay attention to the economic environment you’re living in. Things are very different than what they used to be, in ways both good and bad. For instance, while you have an abundance of opportunities available to you today, it’s equally important to be aware of the prevailing risks. The stock market meltdown in 2008, the current turmoil in the job market, the economic downturn of entire nations, all of it affects you. Hopefully though you’ve learnt those lessons (maybe the hard way), and are ready to overcome the hurdles smartly.
According to Deloitte’s Global Millennial Survey 2019, nearly 50 percent of millennials have the ambition to earn a higher salary, buy their own home, travel the world, even start their own business. Maybe you fall into those categories too. And to achieve all of that as a millennial and a mom, regardless of exactly how old you are, you need to start saving early.
Procrastination is what you need to avoid at any cost.
It’s not just that saving earlier means saving more, though that’s obviously true. The earlier you begin, with more time in hand, also helps ensure your investments as less risky and volatile. Even a small beginning made today can help you meet all your long-term goals. Paying for your children’s education and higher studies, owning your own home, leading a comfortable retired life with your hubby in the golden years. All of that may seem far away right now, but the years can creep up on you in an instant. Why not just prepare in advance?
Like any other parent, your kid’s education is probably one of your biggest concerns. You don’t them to be held back from achieving their aspirations and dreams, so you want to give them the best education possible, with all the sports and extracurricular opportunities possible. That’s something you’d be heartbroken to compromise on right? Whether you want to save money to let your child become an ace-photographer or pursue their own entrepreneurial ambitions, you want to have your priorities sorted out early.
But, things aren’t that simple are they? For one thing, the rising cost of education throws a wrench in those plans. Which means you have to start counting your notes even while your kid is still in the cradle, adjusting for inflation.
However another thing young moms like you have to worry about is the job front. Things are a little better when it comes to the opportunities for women in the workplace, but there’s still some discrimination against mothers and whether they can “handle the work-life balance” As a millennial mom though, you’re better organised. Spending time with kids at home, family outings or a meeting with corporate – you’re taking them all in your stride.
Likely the main difference between you and moms of past generations though is that you’re more involved in the financial discussions at home, and in carving out a road-map for your family’s future. You have the goals identified and funds earmarked towards them. You’re much more aware of investment opportunities and have the know-how to make informed financial decisions. In addition, you probably know about using market-linked products such as ULIPS to generate inflation-adjusted returns from asset classes such as equities.
Taking stock of life risks
All of this means you’re set to face all the hardships being a millennial mom will throw at you. But, life is uncertain and there could be unpleasant events at any life stage of an individual. An untimely demise of main earning member can jeopardize the dreams and goals of the surviving family members. The first big step, therefore, should be to ensure that adequate provision has been made to withstand such an unfortunate event.
With growing age, and as you move up in your career, additional liabilities in the form of home loans and others crop up. It’s imperative for you to keep these risks under control for the benefit of your family. You need to make provisions for unfortunate eventualities in order to avoid any compromise with your goals or that of your family. Being aware of life’s risks is the first step towards leading a happy and comfortable life without worries.
Knowing the solution
The most logical solution is to cover the life risk through a term insurance plan. It’s the purest form of insurance, which offers a higher coverage at the lowest premium. The biggest benefit of such a plan is that it ensures that long-term goals of the family do not get derailed in the event of an untimely demise of the bread winner. Even if both spouses are working, a term insurance plan is an indispensable tool to achieve your financial independence.
You and your spouse can keep saving across various investment classes to fund your family goals, but in the absence of any of the parents the self-funding process stops. A term insurance then comes in handy to supplement monetary support required to act as a safety net.
To Sum up
But keeping up with your finances is only one part of your life story. Having the major risks of life covered, it’s not just that you can face the eventualities of life head-on, but also have the confidence to pursue other ambitions. At every stage of life, there are some uncertainties, but with term protection, there is a certainty that your family’s dreams will not remain unrealised. You – the millennial mom – already know the art of managing money. But without taking control of life’s risks, it’s a job half-done. After all, you don’t want to leave your food half-baked! Do you?
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