Marriage & Family Archives | Page 65 of 80

Financial Checklist For Expectant Parents

The late Janet Reno once said: “I have learned that raising children is the single most difficult thing in the world to do. It takes hard work, love, luck, and a lot of energy. It is the most rewarding experience that you can ever have.”

Creating and nurturing a baby in Singapore is no walk in the park! Encountering sleepless nights, medical scares, and embarrassing moments are unavoidable. One is never completely prepared for what is about to come. However, you can start planning for your future by considering this financial checklist.

#1: DRAFT YOUR PRENATAL BUDGET

You are about to bring life into this exciting and challenging world. Tackle each day with ease by knowing how much you will be spending in the next couple of months. There are many lifestyle adjustments that come with having a baby. Include the food expenses, medical costs, insurance contributions, and so on.

Be honest with yourself when shopping for baby items. Do you really need a trendy stroller with an LCD control panel? Set a tangible line between what is necessary and what is forgivable. For instance, you can save on the disposable diapers by converting to the cloth diapers. Or, you may revamp an old drawer into a changing table. Use your creativity when maximizing your dollars and spend within your bounds.

#2: DETERMINE THE AMOUNT OF YOUR RESERVE

Becoming a preschool teacher made me realize that significant things can happen when you leave a toddler for several seconds. I am not exaggerating. One student may be chewing on the toys while you are trying to get groom the other. I can still recall when I was curious about the air conditioner and ended up with several cuts on my fingers. Being prepared for your baby’s potential accidents is a must!

I recommend that you take a look at your financial reservoir (or emergency fund). Having at least six months’ worth of living expenses covered is a good start point.

#3: UNDERSTAND THE HEALTH INSURANCE’S SCOPE

It is no secret that having a baby in Singapore is expensive, even if you have health insurance. Navigate your attention into the prenatal care, labor, and newborn costs. You need to understand which expenses your insurance will pay for you. There are diverse maternity insurance packages available on the market now! One is the OCBC MaxMaternity Care. It is the first maternity insurance plan that covers its clients as early as 13 weeks into their pregnancy. They will cover your costs for specific types of pregnancy complications.

Aside from understanding the scope of your policy, you must include your baby in your primary health insurance. You can typically change your records within 30 to 60 days after delivery. Do it as soon as possible as you do not want to be caught with an ill newborn and no coverage!

#4: IDENTIFY YOUR CHILDCARE ARRANGEMENTS

We are lucky to be blessed with childcare options ranging from a conservative preschool to an eclectic day care centre. If both you and your spouse are working full-time, recognize that a large number of your monthly costs will go to childcare (i.e., sometimes even more than your rent). This is why you must weigh your options and alternatives. By alternatives, I am pertaining to the relatives that can aid you along the way.

It is an acceptable idea for Asian families to ask for help from their parents. The grandparents-to-be may be available for two days a week. This could help you lessen the financial load. If you wish to hire a nanny, be sure to check the government fees and regulations surrounding it.

Image Credits: pixabay.com

The cost of having a baby does not stop when he or she goes to school! So, consider formulating a long-term financial plan beyond the first few years.

Sources:1,2,3 &4

How Married Couples Can Deal With Huge Salary Gaps

Whether you want to admit it or not, income plays an integral part in the society’s perception of your worth and success. Fusing the the topic of finances to relationships makes things more complicated.

To some degree, your paycheck determines your role in a romantic relationship. An imbalance is created when your spouse earns more than you or the other way around. It is believed that the person who has a higher salary has increased options and financial freedom. Nonetheless, you must address the huge salary gap between you and your partner.

Here are just some tips to help you deal with your current situation:

COMMUNICATION IS THE KEY

Practicing open communication is one of the best ways to resolve issues in marriage (or any romantic relationship). If you are frustrated with your spouse because he or she is not making an effort to find a new job then, talk about it. If you feel guilty for spending more money than your spouse then, talk about it.

Start your financial discussion in a loving manner without accusing the other of anything. You are a family. You should not treat this like a heated battle or a boiling competition. The end goal is to help each other out.

ESTABLISH A BUDGET

Imagine taking a long ride in an unfamiliar place. Your journey can take you into different directions. To create a distinct path, you must follow a map. The same idea applies to your finances. To create a distinct path to your financial goal, you must set a budget.

Establishing a budget lets you allocate a specific amount to each member of the family. Also, you will be able to determine each other’s spending habits. Beginners in budgeting are recommended to use the envelope system.

RESPECT ONE’S ABILITY TO EARN

Before I went to bed, I came across a online discussion at Reddit. The thread surrounded the issue of having any significant achievement gaps between couples. Interestingly, these couples live in harmony.Reddit user pecrh001‘s story caught my attention.

“I have 2 degrees and work as a lawyer. My husband never finished uni but has a job that he loves. He’s a great father and husband. It doesn’t really matter that I earn more than him because it’s all just family money. We’re both working hard and supporting each other and our kids.”

Finding someone who respects you as a person and your ability to earn is more important than the degree that you are holding. Being successful on paper does not translate to your character. Each other’s money is valuable. Forget keeping score!

GIVE AND TAKE

Another important practice that the Reddit thread highlighted is the balance between the two individuals. You must have the chance to give and take. Reddit user The_Superbus illustrated this by posting:

“I worked two jobs while she was in medical school and one job while she was in residency. Now I work no jobs while she is an attending. She likes the fact that I do most of the work around the house so she doesn’t have to. I like the fact that I haven’t had to go to work for the last few years. It also lets us raise our own kid without relying on daycare for 9 hours a day, which is nice.”

EMPLOY A REWARD SYSTEM

After months and months of hard work, you may feel exhausted and overwhelmed. Break the cycle by motivating with reasonable rewards. For instance, you may go to a fancy dinner when your money exceed your budget or when you achieve a financial goal.

Image Credits: pixabay.com

Rewarding each other is a way to remind yourselves that the money you make belongs to the both of you.

Sources: 1 & 2

4 Times Your Parents Were Right About Money

Like most parents, mine were fond of imparting nuggets of wisdom to us. Whether we like it or not, we have to listen to the Hallmark-worthy quotes for every occasion. Be honest! How many times did you roll your eyes on your mother or father as they scold you in front of your friends?

Well, it turns out that some of their financial lessons are beneficial. You can either learn from their successful stories or their wrongful moves. With that said, here are “4 Times Your Parents Were Right About Money”:

DO NOT PUT ALL YOUR EGGS IN ONE BASKET

This statement does not refer to organizing your grocery items. Instead, it refers to the piece of advice that argue against putting your resources in one object or individual. My parents were right when they told me to embrace all the job opportunities while I am still young.

The technical term for this act is diversification. Not diversifying has its drawbacks. Diversification, according to Nobel Prize winner in economics Harry Markowitz, lowers the risk of loss and increases the chances for success when investing. You may apply diversification in other aspects of your life.

For instance, avoid pouring yourself to the workplace as you may neglect your physical health and emotional sanity. In friendships, you must devote your time to several people to create a personal support system or a business network.

MONEY DOES NOT GROW ON TREES

“Money does not grow on trees!”, exclaimed my father. I cannot recall how many times these happened to me as a child (who just wants to collect Barbie dolls). Oh! Hearing these words translated to our mother tongue had a stronger impact. I am sure that some of you had the same experience. As you read these words, your parents’ voices may echo in your head. You are not alone.

The idea of quick and easy cash may appeal to most of us during our childhood, but the real world does not work like that. Earning money takes determination, time, and effort. This is why you must not waste your money on things that you do not need. Teach the value of money to new generations as well.

Furthermore, it is practical to establish your own emergency fund should an unexpected event arise. Consider this “Clever Ways To Build A Sufficient Emergency Fund“ article as a guide.

SPEND WITHIN OR LESS THAN YOUR MEANS

Spending within or less than the bounds of what you can afford can contribute to a stress-free life. I know this lesson sounds utterly obvious. However, some people do not understand the principles of cash flow. A number of Singaporeans are not afraid to whip out their credit cards to buy items that they cannot afford at the moment.

My cousin’s parents understand the prowess of a credit card. So, they did not allow their child to get one. You see, they believed that it is not a good idea to purchase something when you do not have enough cash in the bank to afford it. My cousin has to keep saving money until he could afford the thing that he desires.

You may argue that you cannot shop online without a credit card, but you can use a MasterCard or a Visa debit card. Spending wisely is a good practice to impart to your future children.

PATIENCE IS A VIRTUE

My mother is patience personified! Her actions taught that overcoming instant gratification is important to financial success. Impatience costs people cold hard cash.

If you are willing to wait instead of purchasing immediately, you are able to compare prices within other shops and to find cheaper options. Practicing patience gives you the opportunity to wait for the greatest sales, huge markdowns, and bargain deals that will help you save a lot.

Image Credits: pixabay.com

There are many ways to improve this virtue. You may employ breathing techniques or visualize how long you will wait while in a queue.

Sources: 1 &2

Is Childcare Only For Rich Singaporeans?

As an early childhood teacher from an internationally acclaimed school, I am exposed to the childcare industry. My mere exposure made me wonder why childcare is so expensive! For starters, the issue made the headlines last year due to the huge price gap between the different childcare services across Singapore.

The average price was S$1,004 and the median was S$856. This means that there are centers that charge more than S$2,000. It is ridiculous how this amount is near to the country’s minimum wage. With these overwhelming prices, here are some factors that you must consider before paying for childcare services:

1. VISIT YOUR OPTIONS

Ask credible resources about the available childcare services in your area. For instance, an affordable option is NTUC First Campus (NFC). NFC is dedicated to provide quality and affordable education services for working parents. The institution’s fees range from about S$1,300 to S$1,900.

Image Credits: ntucfirstcampus.com

On the other hand, premium childcare centers endorse specific methodologies such as Montessori. Research on these methods to determine whether they are in lined with your beliefs. Another option is hiring a live-in nanny. A nanny can help you out with other tasks such as cleaning the room and cooking dinner. Save money by hiring a caregiver nearby.

2. COMPARE THE COSTS

As with everything else, you should shop around. Compare the costs of hiring a nanny and enrolling in a daycare center. Have a sense of the monthly fees and requirements. Also, remember to include any government fees and childcare benefits from your company.

3. UNDERSTAND YOUR ECONOMIC SITUATION

Look at your budget and focus on two things. Firstly, figure out your current spending habits. Lastly, eliminate the unnecessary expenses. Are you ready?

Start by creating a list of the things that you spend on. A free software like Mint can help you with the compilation of information. Afterwards, you must go through your non-essential spending. Eliminate or minimize your coffee runs, restaurant visits, shopping sprees, and petrol costs.

Alter your budget according to your predicted childcare spending according to your careful examination.

Sources: 1, 2, 3, 4 & 5

Financial Sacrifices Are Crucial To Send Your Child To A University

HSBC, one of the world’s largest financial institution, conducts its yearly survey series entitled “The Value of Education”. This yearly report examines the parent’ expectations and aspirations for their children’s education.

In 2015, it highlighted that a whopping 90% of Singaporean parents saw undergraduate studies as an essential tool for their children’s success. The interesting part was that majority of these parents (about 83%) were willing to pay more to send their children overseas. The only downside was that some of these parents do not have sufficient money saved. Can you see how much importance was given to university education despite the lack of financial foresight?

Let us move towards the recent 2016 report. Parents in Singapore spend an average of S$21,000 annually on their beloved’s university education. This significant amount is more than twice the global average. Furthermore, majority of these parents (about 52%) were willing to get trapped into debt just to fund their children’s studies. Singaporeans seem to perceive higher education, including overseas studies, as a clincher for future success. Simply ask the billion-dollar tuition or tutorial industry!

The potential issues arise when parents ignore their other financial commitments such as building a savings account for their golden years. Avoid these issues by employing practical steps when planning for your children’s education.

Consider these four steps:

1. ESTABLISH YOUR SAVINGS IN ADVANCE

If you are going to have stellar aspirations for your children, it is only fair that you plan ahead. Open a savings fund for your his or her education during the early development years. Doing so will enable you to have a decent amount of money kept by the time that your child goes to university (i.e., 19 to 21 years old).

2. ENCOURAGE FINANCIAL INDEPENDENCE

Teaching your child the value of money and work opens doors to a brighter financial future. Do not forget about the basics of personal finance including budgeting and investing. Being able to manage their finance is essential to adulthood.

3. ASK FOR PROFESSIONAL GUIDANCE

Seeking professional advice allows you to pinpoint your financial opportunities and potential pitfalls along the way. Need I say more?

4. TAP INTO YOUR CPF ACCOUNT AS A LAST RESORT

Singaporean parents may use their Central Provident Fund Ordinary Account (CPF-OA) savings to cover their children’s diploma or degree courses at approved institutions. If your CPF-OA is insufficient, you can apply for the school’s financial assistance schemes or the Tuition Fee and Study Loan schemes offered by the government.

Image Credits: pixabay.com

Make this option your last resort as you need your savings for retirement, healthcare, and other emergencies.

Sources: 1 &2

Search the site