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Mat and Azlina both in their mid-20s took their very step in planning their finances
seriously before the birth of their first child. They knew that medical costs alone
would give them enough headache.
Recognizing that they would have to cope with new financial burdens, they reviewed
their budget, insurance, and their investments in the stockmarket. With both of them
working, child day care would further stretch their income. They went as far as planning
for the child's future education. With the help from their financial advisors, they
started by building a separate investment nest-egg for the child.
Bringing up children can be expensive. Changing your spending habits becomes an inevitable
fact. It is even more critical in the current environment with inflation spiraling
upwards making the cost of living even higher. "We had cut down on our expenses
so drastically that we do not eat out that much anymore and certainly no more overseas
travelling," claims Azlina.
Providing basic shelter for a child such as food, clothing, healthcare, not to mention
the prospects of higher education can eat up a major portion of your income. Budgeting
may take on a new urgency particularly if you plan to have more than one child.
"Money differences can often be a source of conflict between young married couples.
"I talk about money-related issues openly with my husband especially if the
limited supply of cash is going to be strained by new child-related expenses"
she further elaborated.
If you are expecting or just celebrated the birth of your first child, there are
basically few tips that you need to know when comes to budgeting especially during
bad times. Firstly, you need to calculate the cost for prenatal health care and delivery.
The initial monthly and later, fortnightly and weekly prenatal visits and medication
can add up considerably.
Choosing the place of delivery is also important. The cost can double or even triple
depending on which hospital you choose. Find out what are the options available -
costs vary greatly. Some employers offer packages that include maternity benefits
that could save you a huge sum of money.
The preparations you need to make before the baby arrives will make further dent
in your pocket. You need the basic necessities like a crib, clothing, baby toiletries,
milk powder, child care services, etc.
Thanks to generosity, baby announcements may yield a bounty of gifts such as clothes,
toys, etc but apart from a flurry of gift-giving in the first few months after the
baby is born, you will realize later that just the new clothing that you continually
need to buy for your fast-growing baby can be a sizable setback. Quite often though,
enthusiastic new parents will find that shoes, clothing or toys purchased are rather
unnecessary and frequently end up unused.
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