You’ve prepared yourself emotionally, bought the necessary equipment and are all ready to embrace parenthood. Raising a child can be really exciting and sure, there are so many factors you should consider when planning for your child’s future. And this can start even before the baby is born!

Financial planning is one area you definitely can’t afford to neglect. Trust me, the short-term and long-term costs of a having a baby and raising a child can be managed with careful planning.
First things first, let us take a look at how much things can cost now and in the next couple of years as we do our financial planning.

Pre-delivery and delivery costs

• $3,000 to $5,000 for gynaecologist consultations, tests and hospital fees (bed charges, doctor and anesthetist’s fees, pediatrician’s charges, medicines for labour and after, plus other miscellaneous fees)
  Parents-to-be are able to defray some of these costs using their MediSave funds under the MediSave Maternity Package.
• $1,500 to $3,000 for essentials like maternity clothes, breast pumps, books and ante-natal classes for mum, and cot, car seat, stroller, diapers, clothes, bottles, milk formula, toys and insurance for the baby

Infant care cost (when your child is two to 18 months old)

• $6,000 to $7,500 per year to hire a domestic helper or nanny or $780 to $1,200 a month to send your infant to a day-care centre

Money-saving tips for new parents

• Think over big-ticket expenses because your child will probably outgrow these sooner than you realise.
• Do get your friends and relatives to get you items that you and your child might need for baby shower presents.
• Rent toys instead of forking out for brand new ones that your child may lose interest in. Do an online search to find out what’s available for rent. You’d be surprised how many parents are already doing this.
• Certain vaccinations under the National Immunisation Programme are free of charge at polyclinics so do check with your family doctor for the full list of vaccines your child is enetitled to.
• Make use of the infant care subsidy under the Enhanced Marriage and Parenthood Package that new parents can enjoy too.

Childcare cost (when your child is 18 months to six years old)

• $400 to $1,200 a month for Nursery and Kindergarten
• $6,000 to $7,500 per year to hire a domestic helper or nanny
• $50 to $200 a month for enrichment classes

Education (when your child is seven years and beyond)

• $862* per annum for Primary education
• $2,382* per annum for Secondary education
• $2,616* per annum for Junior College
• $13 to $50 per hour for tuition
• $50 to $200 per month for enrichment classes
  

* Includes school and miscellaneous fees, school uniforms, text books, meal allowance, and transport

Higher education
Below are some examples of how much a university education costs (tuition and living expenses) presently and in the future.

While figures here are rough estimates, they can be used as a guide as to how much you should set aside for your child’s education. Invest early with careful planning and it can a lot simpler then you think.

TIP from Daddy Sam

Take into account future increases in education costs. To help you plan better, download the financial checklist here.