Planning for a Baby? Here is how much you roughly need


When our firstborn son was just shy of two years old, he was struck with a high fever in the middle of the night. Even as inexperienced young parents, my wife and I knew he needed immediate medical care. As we scrambled to prepare to bring him to A&E, I remember my wife asking me which hospital we should take our son to. She was mindful of the high cost of hospitalisation.

As it turned out, he had to be warded for two days and the medical bill came up to a whopping S$5,000! Thankfully, everything was covered by the insurance company as we had bought hospitalisation insurance for the whole family. It certainly was one worry less for this pair of jittery young parents at the time. Financial planning for parenthood isn’t just about budgeting for the big and obvious things like pregnancy cost, medical care, education and enrichment classes. It is also about being ready for the little things that crop up along the way. It’s about being financially resilient as a family unit.

There are obvious costs involved in raising a child and taking care of its needs. Thankfully, in Singapore, the government offers support and rebates to assist young parents in their new journey of raising a child. Based on an article by Smart Parents1, raising a child in Singapore adds up to approximately S$670,000! While the numbers can be daunting, starting a family is one of those things you ease into, if it’s for you. And everyone finds a way. My objective here is to help you get some gauge of your financial readiness.

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