A family always comes with responsibilities, especially when it comes to getting children. A child must be well taken care of and this includes financially. When you start parenting you have to put your children’s priorities first. What first comes to mind while planning for a child to most parents is about the baby’s diapers, the formula and also things like nanny’s bills or daycare? But that’s a short plan. Parents should have a long span plan for their children as well as a family as a whole. Below is how your budget needs to change when you start a family.
Consider the cost of taking care of the child. These are a must and necessary plan. It depends on the decision you make as a couple. If both of you are working then you have to take the child to a daycare of which they are a bit expensive depending on where you live. You can also decide one of the parents to stay at home to take care of the child. That will also cost you some income that one of you was earning then you have to find a way to curb the situation.
Consider the cost of healthcare for the child. Infants are liable to childhood diseases. Others may have allergies of different kinds, maybe the child has certain complications or even some children are recommended to go for therapies. Parents will often have frequent visits to the doctor and this will incur a lot of costs. Despite being under care acts which of course are affordable they might not cover up everything including medications. Parents need to add these costs in their budgets to avoid debts and straining in the future.
Make changes about your insurance covers. Parents should have a life assurance policy. This is important when it comes to the death of one or both of you. The children are left as beneficiaries and these will curb their future needs until they are stable. You should also consider taking a health insurance policy for your children. It is always open one month after birth and this got them all covered from the start.
Make plans as a spouse on how to adjust on your usual spending account. For instance, if where you work there is access to a flexible spending account then you can decide to have more money withheld in your account to cover for the additional expenses that come along with a family? A family also comes along with more room. Children may need their own separate rooms and these calls for a bigger house. Parents should also consider this as an additional cost in their budget hence should make a plan.
Consider your ongoing lifestyle and how it will be affected. There must be some changes to your current lifestyle. For instance, while taking vacations if you were used to purchasing two tickets, then this changes because you must budget for an extra ticket, more rooms, extra food and so many other additional expenses. During the first few years they might not be huge but with time they will keep increasing. Parents should consider this and have a good plan for them.
Take advantage of the tax benefits that come along when you have a child. In Singapore, there are additional taxes that are given when one has a child. Parents can claim some of the expenses of the childcare and make use of the Parenthood tax rebate. Parents should also have a long-term plan of saving for their children’s college fees. This is important to consider avoiding future straining.
It is not easy to plan and manage your budget depending on your income only. At times it requires outsourcing some help from maybe friend’s family or even a better option, institutions. In Singapore, there are many financial institutions that offer personal loan with very low interest rates. For instance, there is:
PERSONAL LOANS INTEREST RATE PER ANNUM -
·DBS personal loans 3.88% p.a
·CIMB Cashlite 4.5% p.a
·HSBC’S Personal loan 4.8% p.a
·Standard chartered cash one 5.68% p.a
·Bank of China smart loan 6.52% p.a
·UOB Personal loan 8% p.a
·OCBC Extra cash loan 8.27%
Parents in Singapore can take advantage of taking personal loans in these low interest offered by licensed money lender to fill the gaps that they can’t afford financially to give their children the best life they would wish and also avoid debts and a lot of straining to the family as a whole. Before deciding to start a family it is always wise to have a budget well planned and know how to manage it as a couple or a spouse. A family always comes with responsibilities, putting it as a first priority and making major sacrifices. But with a well-planned budget, all these come easy with no struggling and hence a happy family.