They may be tiny little people, and one of life’s greatest joys, but new babies certainly have the potential to rack up some expected expenses.
Whether you’re currently thinking about having your first child, or you’re already on the path, it’s important to start preparing for some of the costs that you may not yet have thought of.
While everyone’s experience will be different, we’ve highlighted some of the most common expenses that tend to catch new parents by surprise.
- Clothes: As we all know, babies grow very quickly and often way too fast for their clothes. We are faced with countless opportunities to spend a fortune on baby clothes, from brand-name shoes to polo shirts. Just remember how many times they’re actually going to wear them.
- Lost Sleep: Lost sleep is something that most new parents would expect, however you may not have factored in what this may means for your overall working productivity. This could mean extra days off work, missed sales, lower bonuses, all of which could reduce your overall net income.
- Baby Formula: Baby formula in Singapore, in particular, is approximately double the price of Australia. Do your research and ensure that you’ve factored in the right prices into your budgets. A years’ supply of baby formula could set you back more than $2,000.
- Medical Bills: Many new parents find that the medical bills and doctor’s visits are much more frequent than they expected. Some of these may be covered under your medical insurance, while others may not be. It’s a worthwhile idea to review your health insurance and ensure these costs are factored in.
- Utility Bills: You may be surprised at just how much your utility bills start to increase when you have a new baby. Ensure you’re ready for this increase.
- Fast Food: With sleep depravity and being in a rush to get home to your child, you may start to find that you consume a lot more fast food wherever it is convenient and that price starts playing a lesser role in your decision making. Be sure to factor in this cost, which is all too common with new parents.
- Insurance: Having the right medical insurance in place for you and your family can add peace of mind and reduce the unexpected expenses. It’s important to be aware that maternity cover can’t be taken out if you’re already pregnant, so plan ahead where possible.
Having a baby can be one of the most rewarding experiences for most people. Ensure that you’re financially prepared.
To Your Financial Success!
Jarrad Brown is an Australian-trained and qualified Independent Fee-Based Financial Adviser with Australian Expatriate Group of Global Financial Consultants Pte Ltd providing specialist financial advice and portfolio management services to international and local professionals in Singapore.
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Jarrad Brown is an Authorised Representative of Global Financial Consultants Pte Ltd – No: 200305462G | MAS License No: FA100035-3
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