Today, fuel is selling at N1000 per litre, and even at that amount, you will have to queue for hours to get it. The increase in fuel pump prices means an increase in the prices of everything else, even the costs of training your children in school. Some parents are paying up to ₦350,000 for their children in their primary school. Aside from school fees, there will also be an increase in the expenses of things like transporting your children to school, feeding them, clothes, and extracurricular activities.
Training a child is not easy, especially with the current economic climate. That is why it is now important to have a financial plan that covers your children's needs and helps you cope no matter what the inflation rate is.
In this comprehensive guide, we’ll explore what a financial plan looks like, how to create one, essential money-saving tips for parents, and how the Babybox feature of Jollof+ can support your financial goals.
Why do I need a Financial Plan as a Parent?
Whether you have a masters in accounting or not, you need a financial plan. Without a financial plan, you will keep hustling day in and day out and yet struggle to pay your children’s school fees. As the saying goes, those who fail to plan, plan to fail. A well-structured financial plan for parents helps you allocate your income wisely and avoid financial stress.
Five Tips on How to Create a Financial Plan as a Parent
Now, let’s look at how you can create a financial plan:
1. Track Monthly Expenses
‘How much do I spend on my children’s food monthly?’ ‘How much do I pay for my children’s school fees in a term?’ ‘Do my kids need new clothes or school bags?’ This will help you understand your monthly expenditure.
2. Assess Monthly Income
Write out the amount you earn per month. The salary, the contribution money, the side hustle income, and every other extra source of income. Also, find out if you need any extra gigs to supplement your income. Understanding your total monthly income helps in effective budgeting. This will help plan for each naira as it comes.
3. Create a Budget
Don’t worry, you are not drawing up a national budget. Just calculate the amount of money you will spend on your children’s needs and everything else that month and the amount you will earn that month. Proper budgeting is crucial for managing school-related expenses and other financial needs.
4. Add Savings
Add savings to your budget. Even if it is 1% of your total income, add it. This will save you on rainy days, especially things like unplanned excursions or a child falling sick. Start saving for future needs like college and even their wedding. And now it is easy to save for your children, with features like the Babybox feature of the Jollof+ savings app, you can save for your children’s needs and still earn up to 15.5% net p.a interest.
5. Educate Your Children About Money
Teach your children about financial literacy. Educate them with books, videos, and even through technology with apps like uLesson. If your children understand money, they will be careful how they spend, and help them make informed decisions about their money.
Essential Money-Saving Tips Parents Need This Back-to-School Season
In addition to budget and savings, these are other smart money tips that you can also add to your financial plan:
1. Buy in Bulk
It is always cheaper to buy things in bulk. It will save you a lot of money to buy your children’s school stuff in bulk. Make sure to get only the essentials in bulk, things like books, pens, clothes, etc. And ensure they are of good quality so that you can use them for a long period.
2. Choose Quality yet Affordable Schools
A lot of times, expensive doesn’t mean quality. You can choose an affordable school with good quality. Just make sure the school is academically excellent, close to your home or office, has affordable extracurricular activities, has good values, and, very importantly, is regulated by the right educational bodies. The good thing is that there are a lot of affordable good schools that meet these standards.
3. Try Hand-me Downs
In this current economy, today’s price isn’t tomorrow’s price. Instead of spending more money getting new supplies every school year, your children can reuse last term’s school supplies or an older sibling’s. This will save you money in the long run.
4. Have A Health Plan
Falling sick from time to time is a child’s growth. Having health insurance to cover this will save you money and financial pressure. Some companies offer affordable health insurance; pick one for your family.
5. Add Extracurricular Activities to Your Plan
For your children to have a well-rounded education, they need to participate in extracurricular activities. However, these activities can be expensive. That is why you need to prioritize the activity based on what your child is adept at.
How Babybox Can Help
The Babybox feature on the Jollof+ savings app is designed to assist parents in saving for their children’s needs. With a 15.5% net p.a interest rate, the feature helps you manage the impact of inflation and meet savings goals, such as school fees and future expenses. Additionally, there are no withdrawal fees if you access your funds before the due date.
Try the Babybox feature today by downloading the Jollof+ app here.
Start Planning Now!
Don’t procrastinate planning for your finances, especially when it involves your children. Having a financial plan will help you and your family achieve your financial goals.
