Planning to be a SAHP (Stay At Home Parent)?


Starting a family is an exciting time, but it can also be a time of significant change and not just for the obvious reason!  You are busy planning the details of the birth, setting up the baby’s room and figuring out how much time each parent will take off after the birth (among a host of other decisions!).

The one thing we find many Mum’s (and some Dad’s) are planning is significant time off work followed by a return to part time work.

The benefits

There are many benefits of this approach including:

  • Developing a routine for your baby;
  • Spending time with friends or other SAHP’s allowing your baby to interact socially from a young age allowing you to discuss challenges, concerns and solutions;
  • Spending time with you baby (it goes fast as everyone says);
  • De-stressing family life as it allows for a slower routine;
  • And having some time for yourself.

What about the financial implications

However, transitioning into a successful SAHP arrangement has some financial implications too that should be considered.  Some of these are short term and relate to an obvious change in cashflow and disposable income.

It’s the longer term implications that are possibly the most difficult to understand though.  For example, what does the foregone income mean for your financial position in 10 or 20 years time?  And what can be done about it to minimize the impact?

That’s not to say of course, that you shouldn’t follow the SAHP plan if it is important to you, however you should ensure that it is not giving rise to unintended financial pressures for you and your family in the future.

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