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Protection for the stay-at-home parent

Protection for the stay-at-home parentstay_at_home_mom

In our society the financial value of a homemaker and stay-at-home parent is vastly underrated.
Just think, if you ware the main breadwinner in your household, would you be able to balance the demands of a full time job with the day-to-day running of your family home?

To illustrate the value of financial protection for the stay at home parent, let’s have a look at a typical and apocryphal example, which is replicated in millions of home across the country.

Let’s take a traditional familial set-up.

For the sake of argument we’ll call our happy couple David and Claire. Having worked hard in the early stages of their careers, both David and Claire have climbed the ranks in their respective professions, and are lucky enough to own a lovely house where they can bring up their two young children.

Despite not having any real savings to speak of, Claire decides she will have a break from work to concentrate on bringing up their children until they start school. Thankfully, Andrew’s salary is enough to maintain the lifestyle the young family have grown accustomed to, but lavish holidays and new cars are, for the meantime, off limits. All this sounds secure enough, but what if their circumstances were to change?

What if Claire was tragically one of the many thousands of women diagnosed with breast cancer in Ireland every year? During her treatment it would be unlikely that she would be well enough to look after the children or the family home. While Claire completed her recovery, David would have to contend with the added cost of childcare, which would reduce his take-home pay by between 6,000- 7,000 euros each year. And if his job is particularly demanding, a cleaner may also be required, and even a dog walker to keep the family pooch well exercised. It quickly becomes apparent just how valuable homemakers are.

So, with that said, how can you prepare your finances to ensure you do not find yourself in a similar situation?