As many people continue to chase after their dreams and careers, it is becoming more common for some to jump into parenthood at an older age, some even in their 40s.

More importantly, this phenomenon is fuelled by many important factors such as finding the right life partner, health issues and especially in terms of financial stability.

That said, here are some important tips you can use before becoming a parent at a later stage in life.

Build your career and finances

By choosing to be a parent later on in life, this allows you to use your 20s and 30s to build your career and increase your earning power. This directly translates into more savings and investments, which sets you up beautifully to start a family.

In contrast, it’s an extra pressure if you are taking on a new baby while also looking at establishing your career.

As a new parent, your child will always be on your mind; babies require much attention and nourishment in their first two years alone. You wouldn’t want to miss this special time with them, unless you’re confident juggling your career while being a new parent.

Set up a baby fund

Raising children is not cheap – if you plan to have a child in five years’ time, it is important to use the period to save money for the baby. Of course, your savings should at least cover expenses from pregnancy, all the way to the baby’s one-year-old birthday.

What’s more, pregnancy is a major life change and it evokes many emotions which can overwhelm the soon-to-be mom. Hence, having a baby fund at the ready ensures a stress-free pregnancy, money-wise.

Set aside money as a high-risk pregnancy comes with high costs

Women over the age of 35 face higher risks of pregnancy complications, not to mention, women also face fertility problems once they are above 35 years old. As such, conceiving becomes a struggle.

However, with advancements in medical technology, procedures such as in-vitro fertilisation (IVF) are often used to treat infertility but be forewarned, such treatments also come with a hefty price.

Consider getting a bigger home

That cosy apartment of yours might be too small to welcome your baby. It will need some renovations to add more room as well as baby proofing. The alternative would be to source out a bigger or new home, which means servicing a housing loan for the next 20 years.

However, bank loan options and your bargaining power reduce with age, which will result in shorter loan periods and much lesser approved funds. Furthermore, taking up a major loan at an older age may cause you to carry debts into retirement.

As you can tell, it will be challenging to build a large nest egg for retirement when you have a big loan to service on top of childcare costs.

Make some sacrifices for childcare costs

While becoming a parent at an older age does benefit your career, it still can cause problems for your retirement, as childcare costs become your priority.

Therefore, putting adequate money into your retirement fund will get difficult each month, however, you would probably have a financially dependent kid as you approach your actual retirement. As such, not putting in sufficient money into your retirement fund could force you to sacrifice your dream retirement.

Continue to support your older kids and ageing parents

If you have your child at an older age, you might be faced with the mammoth task of also supporting your elders.

In this regard, both generations will rely on you for financial support and this might affect your financial well-being drastically.

As a responsible child, you wouldn’t neglect the well being of your parents. So, talk to your parents about their finances. You could also work out a plan with your financial advisor that meets the needs of your parents, kids and yourself too.

Plan for an education fund

Regardless of your age upon giving birth, once you have a baby, you must plan for their education fund. If you are a first-time parent in your 20s, you can plan in advance as you still have the time.

However, if you’re planning on having a baby when you are older, you must start soonest. You don’t have many more years left to save money until you retire. And when you retire, it is possible that your young adult child may still need your financial support.

Purchase insurance

Insurance costs increase with age and putting it off will only lead to more future costs. What’s more, as an older, new parent, you should also purchase insurance for your pregnancy to protect your unborn baby.

Coverage such as child protection (before and after birth) and maternal protection during pregnancy cover a wide range of congenital conditions, including neonatal jaundice. Beyond health insurance (pregnancy and newborn), it is applicable also for savings, critical illness, and accident riders.

Ultimately, having a baby might seem like just another phase of life, but for first-time parents, it can be a gruelling experience filled with questions and challenges.

Some people may even warn you about the disadvantages of giving birth at such a late age. But, think of the happiness a child gives to you. That alone is worth everything.

This article first appeared in MyPF. Follow MyPF to simplify and grow your personal finances on Facebook and Instagram.