One of the core concerns of any parent is – will you have enough to look after this child and meet his basic needs? What actions can you take right now to make sure you have enough?
So perhaps you need to keep costs under control right from the start. Don’t be afraid to talk to your spouse about your concerns regarding money, and then plan your finances together:
• Start by creating a baby budget. Stick to your budget and what your baby needs, not what you want for your baby.
• Check available government support for new parents, e.g. Baby Bonus and tax incentives.
• Check your employment benefits: There are a number of benefits you may be entitled to e.g. paid maternity and childcare leave.
• Save and spend smart: Save 10-20% of your pay for rainy days. Stretch your dollar by stocking up necessities like diapers during sales or buy cheaper online.
• Plan early for the unexpected: Get life and medical insurance for yourself and your baby.
• Save early for your child’s education: Start now, not when he starts school, to maximise the benefit of compounding interest.
~ Ms Anne Tay, vice–president of Wealth Management Singapore at OCBC Bank