Chasing the Fionist Dream

B’sha’a tova! You’re expecting! Or hope and pray to be expecting sometime soon. While you dream about what your future baby will be like and plan for the kind of life you will give him or her, it is important to think about how to finance these dreams. Fortunately, we’ve got you covered.

1. Plan for maternity leave. Paid maternity leave in Israel is 15 weeks long, with an additional 11 or more unpaid weeks if you choose. If you plan to take off longer than 15 weeks, make sure that you can make it through the unpaid period without going into debt. We started building our extended maternity leave funds early on in our pregnancies.
   
   
2. Considering quitting your job and staying home with your baby? Make sure you understand how not working for a few years will affect you financially today, tomorrow, and even in retirement. We delve into all of that in this post. TL;DR – No matter how expensive daycare is, taking a break from work to stay home with your children will never ever save you money. There are plenty of very real, wonderful reasons to stay home with your children, but saving money isn’t one of them.
   
   
3. Know your rights. Israeli law protects pregnant women and women undergoing fertility treatments. Did you know that you are entitled to paid time off for doctor’s appointments? Or that it is much harder for your employer to fire you?
   
   
4. Adjust your budget. Becoming parents comes with a lot of extra monthly expenses: diapers, wipes, butt cream, formula (or more food for mom), and daycare – just to name a few. Some people also feel the need to upgrade their living situation or buy a car when they have a baby. These costs can be huge and really add up. Being low earners when we became parents, we really felt the strain of these new expenses. Figure out where the money for these expenses will come from before committing to any big (and especially recurring!) expenses.
   
   
5. Check with your kupat cholim. The top tier of many kupot cholim offers a סל הריון, a special package of a few thousand shekels that can be used to pay for pregnancy or birth services, including doulas or lactation consultants.
   
   
6. Procure the basics. Babies need surprisingly few things, especially new things. Make sure to check out our list of essential baby items and those we did without.
   
   
7. Choose a government-sponsored child savings plan. חיסכון לכל ילד is a government program that saves 57 shekels per month for each Israeli child. You, as a parent, have the option to double this amount. You also have the option to choose which track the money is invested in. Your choices will greatly affect the amount of money waiting for your child in that account when he or she enters adulthood.
   
   
8. Plan for the future. Bar or bat mitzvahs, weddings, higher education, helping your kids with a down payment, etc. By starting early and investing every month, you can reach your dreams.
   
   
9. Keep the conversation going. Talk about money openly often. Dream big and talk about how you’ll get there. Be an active partner in your finances. And equally important, talk about money in front of your kids and involve them in your conversations in an age appropriate way.

We wish you lots of success, happiness, and nachat during this exciting time. Take pictures and make memories. The time flies quickly. You got this!

What things are important to do you consider when having a new baby?

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