Having a baby
It's always good to think about finances when the family grows.
It's always good to think about finances when the family grows.
When the family grows, it often calls for changes in both income and expenses. It is therefore smart to consider finances before deciding to expand the family, as it's good to have built up a reserve fund to bridge the financial gap that forms during parental leave.
Many things change with the arrival of a child, and to some it may seem as if the world has been turned upside down. It's not just the expenses that increase, but income is often lower during the first few months after a child's arrival since parental leave payments are usually not as high as the salary payments they replace.
On the Parental leave fund website, you can read more about the rules regarding parental leave. The total length of the leave is 12 months, divided equally between parents, with 6 weeks of those months transferable to the other parent. If a parent is single, their right to parental leave is 12 months. Payments during parental leave are 80% of the parent's salary, though never higher than 600 thousand before tax.
The best gift parents can give their child is savings that follow them from their earliest days. We offer a future account which is perfect for birthday money, occasional gifts, and daily savings. The savings become available when the child turns 18 and can be useful when they face important life decisions, such as education or purchasing their first home.
In addition, we offer fund subscriptions, where savings are invested in diverse asset classes with the goal of increasing returns over the long term. With a fund subscription, you can choose a risk level that suits you and ensure that the savings work for your child in an efficient way.
Young Saver Account is an inflation-indexed deposit account with funds available for withdrawal when the account holder turns 18. It offers our highest interest rates, making it an excellent foundation for children's and teenagers' futures.
You simply choose the amount that suits you, with no minimum and no cost for buying or selling. In the app, you'll always have a good overview of your child's assets.
Those who anticipate difficulty meeting their financial obligations during parental leave can apply to have their mortgage payments at Arion Bank reduced by up to half while on parental leave. The remaining balance will then be added to the principal of the loan.
It is therefore important for expectant parents to sit down, discuss their finances, and seek advice about next steps.
It's good to thoroughly review family insurance when expecting a child. Many people want to change their life and health insurance policies when they become responsible for the life and health of children and want to ensure their financial stability in case of illness or death of parents. Vörður offers diverse insurance options for the family.
It's also worth considering insuring children against potential trauma from accidents and illnesses that could have permanent consequences for their health and happiness.
