Planning maternity breaks? How soon-to-be moms can make good financial plan

Motherhood is a joyful journey that brings a sense of fulfilment to oneself; but it is also one of the crucial times when women face significant hurdles while planning a career break.

While taking maternity breaks, or simply taking time off to care for their growing family, women face a dilemma between personal priority and financial security.
On such occasions, a sound financial plan plays a pivotal role in ensuring expecting mothers can smoothly and confidently navigate through their career breaks with peace of mind.


Here are some essential financial planning tips to help expecting mothers manage their finances effectively during their time away from work.

1. Assess Your Financial Situation
Before embarking on a career break, or otherwise, it is important to visit and assess your financial situations from time to time. An assessment of the income, savings, current expenses, EMIs and/or outstanding financial commitments will be crucial in examining your financial standing and will give the much-needed clarity on how to adjust your financial plan during the break.

2. Create a Budget
Giving a structure to your monthly budget, current and planned, with respect to your new life will be greatly helpful in managing finances. A healthy discussion on the family income and essential expenses such as housing, utilities, groceries, healthcare, newborn care, as well as an emergency fund need to be accounted for. Be realistic in your estimates to ensure financial stability throughout the career break.

3. Build an Emergency Fund
Having an emergency fund is essential. To meet unexpected expenses or emergencies that may arise during your career break, it is essential to create a fund that can come to your rescue. An ideal emergency fund should be enough to cover at least six months' worth of living expenses. This fund will provide a financial safety net and peace of mind in testing times and offer you the bandwidth to plan ahead.

4. Maximize Benefits and Resources
More and more workplaces are becoming employee friendly with their leave and benefit policies to support a healthy work-life balance. Understand and avail any benefits or resources available to you through your employer, such as maternity leave policies, flexible work arrangements, or employee assistance programmes. Familiarise yourself with your entitlements and explore options for temporary income replacement or support services that can ease the financial burden during your break.

5. Plan for Return to Work
Duly analyse your break period and also plan for your eventual return to the workforce. Staying connected with your professional network, and upgrading your skills and knowledge through online courses or workshops are some ways to keep yourself in the know. Having a clear plan for re-entering the workforce will facilitate a smoother transition once you return to the workforce.

Conclusion
As we celebrate Mother's Day, let's empower expecting mothers to take control of their financial futures and embrace the journey of motherhood with confidence and peace of mind. With the right financial planning strategies in place, soon-to-be mothers can navigate their career breaks with grace, resilience and due financial stability.

(The article is written by Krishan Mishra, CEO, FPSB India.)