4 Life-Saving Financial Tips New Parents Should Take Note Of
Updated: Oct 28, 2021
Cradling your firstborn in your arms evokes inexplicable happiness and bliss. While having a baby is one of life’s greatest blessings, parents often get caught up in the excitement of having a little one and overlook the importance of budgeting for a new baby.
Getting a hold of your financial stability is essential in ensuring that you’re well-prepared to afford the costs of bringing up a child in Singapore. Between milk bottles, diapers and endless nursery items, there’s an infinite list of things to purchase upon becoming a parent, and they do not necessarily come cheap. As new parents juggle an endless amount of responsibilities and mothers adapt to their postpartum bodies, a lack of proper budgeting can cause mental toil to snowball and creep up on you.
Things may feel daunting in the initial stages of having a newborn, but never let it distract you from the joys of welcoming new life! Here are some methods and practical tips to ease your financial burden and start your budget planning journey.
Drafting out a detailed budget for your baby’s expenses
As you embark on your exciting motherhood journey, creating a detailed budget account for your baby’s various expenses can help you keep track of your finances better. Together with your spouse, chart out both your monthly incomes on an excel sheet and allocate a set amount of costs for your child’s daily needs.
There are many factors to account for when it comes to baby necessities, including milk formulas, childcare products and even gynaecological check-ups — all of which require an exorbitant sum of money.
It’s best to plan your budget early so you can avoid stressing out over your finances in the future. That way, you also have a clearer idea of what you can afford and can swiftly cut down on unnecessary expenditure along the way.
Familiarising yourself with the government subsidies that you are eligible for
One of the many benefits of having a baby in Singapore is that new parents are eligible for various government subsidies and grants to ease their financial burden. Such monetary grants are the government's way of showing support and encouragement for married couples to have more children.
For example, mothers with a firstborn can register for the Baby Support Grant to receive up to $17,000 per child. You can also benefit from the Baby Bonus Cash Gift, where you'll receive a total of $8,000 each per your first and second baby. For each subsequent child, the Baby Bonus Cash Gift further allocates $10,000 to mothers.
With financial aids provided for parents, rest assured that a considerable fraction of your baby expenditure is well cared for!
Being open to accepting pre-loved baby items
While being able to pamper your bub with the latest toys and clothes understandably gives all mothers a sense of satisfaction and pride, baby care products are costly. When you have monthly bills and obligations that require additional funds, spoiling your little one with brand new items may not be financially wise.
Instead, how about looking at pre-loved clothing and nursery items donated by other parents? By doing so, you'll effectively save on extra costs spent on materialistic products and can splurge on other infant essentials.
There's no shame in receiving hand-me-downs; after all, babies experience rapid growth spurts, and they outgrow their clothes quickly. Chances are, most of the second-hand items you receive will be either in brand new or excellent condition.
Purchasing insurance for your little one early
As parents, you probably have eventual plans to purchase insurance for your little one. Instead of putting off buying life insurance for your child, it's advised that you do so as soon as possible.
As newborns are blessed with a clean bill of health, there are usually close to zero or no exclusions when you seek insurance coverage for them. On the other hand, older children are more likely to suffer from illnesses uncovered by indemnification. The longer you wait to buy an insurance policy for your baby, the higher the possibility of unexpected health concerns.
Additionally, should accidents happen, you can prioritise your child's recovery while knowing that you are protected by insurance coverage. Otherwise, you may find yourself fretting about the hefty medical fees incurred, which can take a toll on your finances in the future.
Having financial stability is imperative when you welcome a child into your family. By having a clear and thorough budget plan from the get-go, you can minimise the potential financial struggles of raising a baby.
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