Who Pays the Bills when You Can't
Written on the 29 July 2015 by Janet Culpitt
By: Janet Culpitt | Arrow Focus on Wealth | Wednesday, 29 July, 2015
JANET CULPITT looks at why as a parent and business woman we need to consider
and plan for how we could cope financially should the worst happen.
It's no surprise to hear that raising a family can be expensive, however,
it may be news to you to hear that an average middle-income Australian family can spend
a staggering $812,000 to raise two children to the age of 21.*
As this number has increased by around 50 per cent since 2007, it's safe to assume that the cost of raising children in Australia will continue to escalate.
School fees alone can be expensive and if you plan to send your children to an independent or private school,
it is a good idea to start saving for their education as soon as they are born.
As parents we all have the obligation to do the best for our children within our affordability.
We all want our children's future to be bright. We want them to be secure and happy
and for them to know that we have done our best in looking after them during their childhood.
Whilst no one ever wants to imagine the possibility of something happening to their child,
unfortunately, this is a reality for many Australian families each and every year.
We are constantly reminded of dreadful things happening to children and their families.
We only have to turn on the daily news or read an article to learn of someone's suffering.
Have you considered what would happen if one of your children became seriously ill,
was injured, or worse?
Would you be able to take off time from work to care for a sick or disabled child,
in addition to covering their medical expenses? If you were to take on the responsibility as your child's full-time carer,
would this result in a financial impact on your small business or your business partners?
It is easy to think "it will never happen to me", but unfortunately it can.
The very reason that we don't want to think about such a difficult situation arising is the very reason we should.
As business women we have the responsibility to cross every 'T' and dot every 'I' in preparation for the unknown.
We need to ensure that regardless of what happens down the track we have taken the necessary measures to protect our families,
business partners and our financial goals.
This entails planning ahead, so nothing is left to chance.
Now is the time to assess your situation by checking that you have a solution and
adequate insurance in place to combat any unforeseen event. Insurance is a contingency plan
and it is designed to take care of the 'what-ifs' in life.
It is never too late to start.
You can do this by growing your wealth, using effective strategies
and seeking advice from a professional who can assist you to organise your superannuation, insurance
A small start is better than no start.
*NATSEM Income and Wealth Report Issue 33 Cost of Kids: The cost of raising children in Australia. May 2013.
Author: Janet Culpitt