MyMoney Online

Mothers……the most important asset

Mother’s Day is a very important day for most. They are undoubtedly the most important asset in the family. They provide, nurture and support with endless commitment giving their all even when they don’t have much left. How do you put a value on them when they are simply priceless. There are, however, some important financial aspects which should be in place which Moms should be aware of:

Get involved in the family’s financial plan

Understand the details of what provisions there are should a life changing event occur. Don’t leave it up to the spouse and find out hard way if something happens. You will want to be assured that you know the financial implications and should adjust things whilst you can.

Is the family protected with sufficient life assurance?

If Mom passed away leaving behind dependent children there could be serious financial ramifications for the family. Who will mind the children? If Mom contributed to the household income how will this be replaced? If Mom is dependent on Hubby and he passes on this could be financially disastrous. The amount of life assurance should cover all outstanding debts and leave behind enough to get through the months maintain your monthly income needs until the children are off your hands.

Have you provided enough for education?

Provisions for education should be in line with your affordability. However, many families sacrifice a lot financially to put their kids through school leaving them in more debt than they can handle. Ideally you should have a nest egg to subsidise you education costs.There are many ways to do this. My preferred is to have excess cash in your access bond which is available for the school fees and other must have’s. The bond provides liquidity and whilst there is excess you are paying off the bond in a shorter time.

Ultimately, a family which is well provided for is a happy one. Happy, happy Mother’s Day.


Recommended

by THE NEWSROOM

702 welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the 702 community a safe and welcoming space for all.

702 reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

702 is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Old Mutual, AECI are the best JSE shares to buy right now (27 Four Investments)

Old Mutual, AECI are the best JSE shares to buy right now (27 Four Investments)

Stock pick time on The Money Show… Bruce Whitfield interviews 27 Four Investments analyst Nadir Thokan.

Strategies for reducing your exposure to Naspers

Strategies for reducing your exposure to Naspers

Naspers constitutes a whopping 20% of the Top 40 index. Bruce Whitfield interviews Personal Financial Advisor Warren Ingram.

3 shares you should seriously consider buying, right now (Bridge Stockbrokers)

3 shares you should seriously consider buying, right now (Bridge Stockbrokers)

May the force be with you, and your money! The Money Show’s Bruce Whitfield interviews stockbroker Nicholas Kunze.

Ponzi Schemes thrive in an ailing economy…

Ponzi Schemes thrive in an ailing economy…

Financial fitness presenter, Paul Roelofse breaks down Ponzi Schemes (especially the latest MMM).

Three reasons why you should have a trust

Three reasons why you should have a trust

A trust is a useful entity in some circumstances as the assets it owns do not belong to you, writes Paul Roelofse .

Three reasons why you shouldn’t have a trust

Three reasons why you shouldn’t have a trust

Having a trust seems like the right thing to do but financial planner, Paul Roelofse says it's not that beneficial for you.

Popular articles
How Free State's Ace Magashule's family linked to Gupta companies #GuptaLeaks

How Free State's Ace Magashule's family linked to Gupta companies #GuptaLeaks

Revelations published today show how the premier's sons and Free State govt appear heavily involved in the Gupta-owned companies.

Who is Advocate Tembeka Ngcukaitobi?

Who is Advocate Tembeka Ngcukaitobi?

The EFF lawyer stole the show during the state capture report court battle.

'The university degree is dead'

'The university degree is dead'

Flux Trends founder Dion Chang gives five reasons why he believes getting a degree is past its sell by date.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Blesserfinder: Matching you with a sugar daddy near you

Blesserfinder: Matching you with a sugar daddy near you

Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?

5 ways the NSFAS funding model will change in 2017

5 ways the NSFAS funding model will change in 2017

The National Student Financial Aid Scheme (NSFAS) will pilot a new funding model in 2017. NSFAS chairperson Sizwe Nxasana explains.