Being a mum in Singapore requires a great deal of commitment and cash. On top of saving for the children, you should also start planning for your own retirement, even though this is probably the last thing on your mind because you have other financial issues to deal with.
Safeguarding your family’s fiscal future is challenging affair, since there are many considerations to keep in mind. Before you throw up your hands in defeat, get help from a finance expert, especially if you are starting a family. So before baby arrives, this is what you can do:
1. Remember to consider the expenses you’ll incur for your baby’s delivery.
2. When buying baby basics, such as stroller, cot and playpen, keep in mind that costs vary, depending on the brand. Hand-me-downs and gifts from relatives and friends will help you cut costs.
3. Set aside a budget for a helper during the confinement month.
4. If you are getting a domestic helper, take note of her salary, and costs like maid levy and insurance. Compare this to the cost of engaging a babysitter ¾ be it grandparents, a relative, or a nanny ¾ or enrolling your baby in infantcare, and if you decide to become a full-time mother, even the opportunity cost.
Books on growing your money
How To Be The Family CFO: 4 Simple Steps To Put Your Financial House In Order, by Kim Snider (Call no.: English 332.024 SNI - [BIZ])
Take Charge Of Your Money Now!, by A.J. Monte and Rick Swope (Call no.: English 332.024 MON - [BIZ])
Bratproofing Your Children: How To Raise Socially And Financially Responsible Kids, by Lewis D. Solomon and Janet Stern Solomon (Call no.: English 649.7 SOL - [FAM])
What To Do When The Economy Sucks, by Peter Sander (Call no.: English 332.024 SAN - [BIZ])
Check title availability at www.nlb.gov.sg
The benefits of early planning
1. Premiums are cheaper.
2. You’ll have a longer time frame to accumulate cash values over a longer period of time.
3. Compounding returns help you to accumulate more.
4. Protection for the family. Should an unforeseen circumstance occur ¾ such as premature death, disability or critical illness ¾ the insurance proceeds will help to alleviate the family’s financial burden.
5. Parents who are prudent in financial planning make very good role models for their children, who will be educated early about the importance of financial planning. This inculcates the value of thrift in young children.