7 Common Money Mistakes New Parents Make

Managing family finances is an essential skill for young couples to master, especially those who are pregnant and parents for the first time. In fact, financial management not only affects the spousal relationship, but also directly affects the future of the children.

1. Splurging on Children’s Activities

Parents are often thrilled when their children find an activity that they both love and excel in. However, don’t make the mistake of letting your child’s newfound interest turn into your personal identity. While you may relish the role of hockey dad or dance mom, don’t put yourself on financially unstable ground to support your child’s endeavors. It’s one thing to spend thousands of dollars on your kids’ activities, but when you make a late credit card payment because of it or you carry a balance, you can be hit with additional thousands of dollars in interest.

2. Not Creating a New-Baby Budget

One of the most dangerous financial traps parents-to-be can fall into is underestimating the costs of having a baby. That includes the costs incurred before the birth, such as doctor visits and new-baby gear, the costs of the birth and delivery itself, and the expenses that come after, like diapers and baby essentials.

3.Lack of Agreement on Spending Habits and Plans

If a couple does not agree on spending habits and plans, one will always feel “upset” and “frustrated” with the other’s spending. You also can’t save money if your husband is always spending beyond his means. Therefore, the first thing to do is that you two need to agree on your expenses and the family’s savings funds. For example, if you plan to have children, you need to plan an emergency fund specifically set up for them, such as a life insurance package that will accompany your children from the womb to adulthood.

4.Buying Everything New
For some of you, it’s hard to imagine putting your pure, precious newborn into a hand-me-down stroller. But by the time that infant is a few months or years old, you may be kicking yourself for buying new gear.

“I definitely started out buying everything brand-new that I needed,” says Suzanne Brown, author of Mompowerment and a mom of two from Austin, Texas. “Over time I realized I could have borrowed some of the items, like a bouncer or a bathtub to bathe baby, or bought them second-hand. I wish I had started that approach earlier because many items you buy for age 2 and under are used very little.”

5.Thinking You Need Every Baby-related Gadget
Just because a baby item exists doesn’t mean you need it. When you see other parents’ gear, it can be tempting to get your baby the same developmental toy or play mat.

However, your kid really won’t know what they’re missing. While baby blogs and parenting sites may sing the proverbial praises of having a jumper, a play gym, and so on, most little ones are happy chilling on a blanket outdoors or on your living room rug. Save your funds for the toddler years.

6. Failure to Educate Your Children About the Value of Money

Children need to know about the value of money and how to save money from an early age. Depending on your child’s age, you can turn this into a fun game, so that he/she can understand and form the following ideas: Why do I have to save money? How can I save money?

7. Forgoing Available Tax Breaks
Having a child can offer some advantages at tax time for parents who are eligible to claim certain tax credits or deductions. Some of the tax benefits available to new parents include:

If you are a parent, you may be eligible to claim the Parenthood Tax Rebate of $5,000 for your first child, $10,000 for your second child, and $20,000 for your third and subsequent child. The child must be a Singapore Citizen at the time of birth or within 12 months thereafter.

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Parents with Singapore Citizen children enrolled in licensed childcare centres can receive a Basic Subsidy of up to $600 per month for full-day infant care, and up to $300 per month for full-day childcare.

Sources: 1, 2, 3, & 4


How to Live Like a Millionaire on a Small Budget

Do you dream of living a luxurious lifestyle like a millionaire, but feel like your bank account just won’t cut it? The good news is that you can still enjoy the finer things in life without having to break the bank.

By adopting a few straightforward lifestyle changes, you can indulge in luxury without worrying about overspending or debt. Here are some of the smart financial choices that you can begin with.


One of the first things you can do to live like a millionaire on a shoestring budget is to learn how to budget effectively. By examining your expenses and prioritizing your spending, you can ensure that your money is going towards things that matter most to you.

Do you value childcare over new gadgets? Do you prioritize training or travel? Assessing your spending habits will result in cutting back on unnecessary expenses and focusing on things that bring you joy.


When you’re trying to live like a millionaire on a budget, it’s crucial to invest in high-quality items. This doesn’t mean spending a fortune. Instead, you must choose items that are worth the investment and will last a long time.

For instance, you could invest in a classic white button-up shirt that costs S$100 and wear it to different work events, rather than buying a cheap shirt that you’ll only wear twice and dispose of due to its poor quality. While you’re at it, consider building a capsule wardrobe to simplify your life. By cutting out clutter, you can create a more luxurious and clean-living environment.


Take advantage of free or low-cost experiences. Look for free events in your community by browsing social media groups or marketplaces. You can also join DIY or home improvement projects initiated by your community.

Indulge in some free group activities, such as visiting ArtScience Museum‘s “Future World: Where Art Meets Science” exhibit. Guests can enjoy complimentary entry for up to four children under 12 years old on Fridays, except during Singapore school periods or public holidays.

You can also go to the Singapore Heritage Fest, which highlights the country’s rich history through a series of exhibitions, talks, and performances. Many of the festival’s activities are free. By being resourceful and creative, you can have fun and feel fulfilled without spending a lot of money.


Expand your collection of high-quality goods and services by seeking out deals and discounts. Many luxury brands offer clearance events or seasonal promotions, so keep an eye out for those.


Knowledge is an investment that yields the highest returns, as it is something that no one can ever take away from you. Take classes and learn new things to add value to your personal and professional life. When you have more skills and knowledge, you can negotiate better deals and increase salary. Sign-up for some classes today at SkillsFuture Singapore (e.g., Introduction To Personal Investing for S$20).


True luxury is often found in experiences and not in material possessions. Travelling can be a great way to experience luxury as perceived by diverse cultures. Don’t forget to travel smart! Instead of staying in expensive hotels or resorts, consider renting an apartment or house. This will give you more space and privacy for less money.

When it comes to dining out, eat like the locals or choose restaurants that offer good value for your money. Read online reviews to be guided, especially when you are in a place you have not been before.


Have you been on a yacht before? Yachting may seem like an activity reserved only for the wealthy elite, but at The Yacht Club, you can enjoy the experience at an affordable price. With one of the largest fleets of yachts in Singapore, The Yacht Club offers a variety of options to fit your budget. The most economical choice starts at S$635 and provides an elegant, powered single-hull that can accommodate more than 10 passengers in its spacious lounge area. Check out their website for special rates.


Credit cards offer a variety of rebates and rewards, allowing you to purchase items on your wishlist for a fraction of the price. However, it’s important to use these cards with discipline and wisdom. You don’t want to end up in debt just to satisfy your lavish taste.


If you love eating out, opt for lunch instead of dinner. Many restaurants and cafes offer lunchtime promotions or set menus at lower prices than their dinner offerings. The food is just as delicious.


For a coffee enthusiast, savoring a delicious cup of coffee is a luxurious experience. Fortunately, many grocery stores offer a wide range of high-quality coffee beans to choose from. By purchasing whole beans and grinding them at home, you can save a significant amount of money on your daily latte. Whiff the aroma of freshly brewed coffee in the comfort of your own home while also being budget-friendly.

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Living like a millionaire on a tight budget is all about adopting a mindset of abundance and focusing on the things that truly matter. By simplifying your life, being resourceful, and budgeting effectively, you can create a life of comfort without draining your savings!

Sources: 1 & 2


You Can Afford to Travel Cheap in 2023!

Believe it or not, you can travel from one country to another on a tight budget.

Learning how to travel within your budget is about taking advantage of useful websites and using different techniques that save you money. To help you enjoy your vacation, here are some ways to stretch your dollar when you travel.


Coming up with a plan will help you maximize your budget, wherever you go. You do not have to be immensely strict with the day-to-day budget. However, you have to know how long you will be spending in each city or country, how much you can shell out, and how you will be able to get there. Leaving less to chance means fewer unexpected fees and last-minute bookings.


Some places are usually much cheaper than others. Start by researching which places are doable to visit within your budget. Maybe it’s somewhere within Asia or somewhere that is easy to get to. You can also search for countries that would give you excellent value because of their exchange rate.


Big cities and tourist spots such as the Pyramids of Giza or Santorini are often more expensive than lesser-known destinations. Even within your destination, avoid restaurants on the main strip and try to eat something from the sidewalk. Seek help from the locals as they can give valuable advice.


The best way to save money while in a different country is to cook your own meals. Whenever possible, you can spend a week’s worth of groceries and cook hearty meals with your partner or kids. Imagine how much you will save if you skip on restaurants when you travel to expensive destinations like Iceland and Norway.

Image Credits: pixabay.com

Pro Tip: You can save even more money by booking your flights using a VPN, switching the incognito mode, or after deleting your cookies.


Trade lavish hotel suites for rooms in hostels. Sharing a room divides the costs between you and your friends or family. Moreover, having communal areas will allow you to meet more people. Websites such as CouchSurfing and Airbnb provide an inexpensive option for travelers. Your host can be your gateway to insider-tips for the best eateries and tourist attractions in that neighborhood.


It goes without saying that booking in advance is usually cheaper than last-minute bookings. Prices increase, the closer you get to your departure date. Accommodation, air fares, and activities can have deals and early bird rates.


Buses and trains cost less than travelling everywhere by cabs. A journey overnight on a train also means that you have one less night in a hotel or hostel to pay for. Transportation passes such as Eurail Pass (Europe) and JR Pass (Japan) can help you save money during your travel. If you are travelling around the area for a while, passes such as this can be significantly more inexpensive than just booking individual trips.


One of the most valuable tips for travelling on a budget is to take only what you need. If you forget something, it could cost more money to buy that essential missing item. So, list down what you need and review your baggage list. Pack light whenever possible because additional baggage can cost you more. For instance, Singapore Airlines can charge you anywhere between S$6 to S$225 for additional baggage.  Do you want to pay for that?

Sources: 1 & 2



How To Save Money When You’re Single

Managing your finances as a single man or woman has both its advantages and disadvantages. As such, you have the freedom to choose how you intend to save or spend. On the other hand, married individuals have the safety net of a second income.

The benefit of managing your money when you are single is freedom. There is no one else to check in if you want to spend your Christmas bonus on a trip to Europe. Complete freedom cannot happen when you are married. Living off peanut butter and bread may sound reasonable to you, but your spouse and children may disagree.

When it comes to the disadvantage, you do not have a partner to offer accountability. Moreover, you do not have a safety net of second income should an emergency such as job loss occur. You need to figure out how to pay for food, loan payments, rent, and other expenses alone.

Hence, you must start managing your money by creating a budget.


Control your finances by creating a budget. You can try the 50/30/20 method. With this strategy, you allocate 50% of your income for fixed costs, 20% for savings and debt repayment, and the remaining 30% for your non-essentials. Adjust these percentages when necessary.


We all need help. If you are single and you are having trouble with staying within your budget, you can find an accountability partner. Here is a helpful phrase: “It is not in the budget!”


You may be tempted to simply order takeout or eat at restaurants, but this strategy can easily get expensive in the long run. Cooking your own meals can save you a lot of cash. Search online for budget-friendly recipes for one person.


Set specific, measurable, time-sensitive, and attainable financial goals. Put them into writing. It will be easier to stay motivated when you can read these goals on a daily basis. For instance, you can create a list of goals and stick it to your fridge or make a desktop wallpaper out of it.

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Sources: 1 & 2


6 Ways to Fine-Tune Your Lifestyle

Being financially responsible is vital for your health and your financial life. Spending less than what you make each month entails that you live within your means. For many Singaporeans, it is a lot easier said than done.

Start with small financial changes to alter your lifestyle!


Write down your income and start subtracting each monthly expense. If you get a negative number, you are spending more than you make. You need to cut back. Focus on reducing your expenses to fit your income.


People often use credit cards for large purchases that they cannot afford entirely, such as a new air conditioner. It is best to set aside some money each money until you have saved up enough to buy it outright. Do not purchase something that you cannot afford to buy.


12.12 is right around the corner! Save money on your favorite brands or large ticket purchases by waiting for sales. You can often predict when an item will be discounted. Perhaps, a new model will come along. Take advantage of year-end sales!


Sometimes, all you need to do to save cash is to ask. If you are a long-term client who has never made an overdue payment, you may be entitled to a loyalty discount. Affordable vacation packages can also be offered to you once you ask for flexible travel plans.


Leave your plastic cards at home. Try to buy things that you can afford using cash or your debit card. Be strategic and calculate your moves. Consider apps to automatically put money in your savings every time you use your debit card.

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Trends come and go. Resist the pressure to have the same material things as the people around you or the people you see online. You may be able to use credit cards and loans to fake wealth for a brief period, but you will pay for it later. That is more painful.

Sources: 1 & 2