What a delightful moment it is when you have a new addition to your family in the form of a cute little angel! The precious feelings when you hold your newborn in your hands, welcoming him warmly into your home are truly priceless. However, being a parent, you now have to face various challenges and responsibilities. Raising a child always brings with it numerous financial loads. It is because you are not only responsible for taking care of your child for the time being. Instead, it is a responsibility forever, which demands lots of physical and monetary input from your side.
Essential Financial Steps You Should Take While Beginning Your Parenthood
Instead of getting worried about your present and future economic position, it is better to brainstorm a bit well before time. The best you could do is to begin your parenthood with proper planning. To ease your burden, here we propose a four-step strategy to start your parenthood. These are indeed the essential financial steps every new parent should take as a must.
1. Ensure Establishing At Least Two Financial Nets With Around 3 To 6 Months Total Worth Of Your Income
It is good that you have planned for a new addition to your family. But, have you done something to arrange his welcome? Right after you plan your baby, the first thing you should do is to arrange a SOS family fund to begin hoarding your money for the newcomer. Establishing such funds is helpful since these funds come over to you as a responsibility. You become bound to spare a fixed amount every month to furnish the fund. That’s how you are compelled to manage your livelihood in the remaining budget. If you do not opt for such funds, you might probably never succeed in sparing the same amount each time.
Once you establish a single fund, try managing yourself to build up a second one as well. If you are sparing, say 20% of your monthly income for a separate fund, you can now consider saving 40%. It may temporarily look like a financial burden to you. Nonetheless, in the long run, you will appreciate the benefit of these investments when you will have a bulk amount at the time of any child-related emergency situations.
2. Open A Separate Child Development Account For Your Baby
In the next step, you can benefit yourself from the Baby Bonus Scheme. It is also an excellent initiative by the government to help you include a fair share of your child’s expenses in your monthly budget. In the Baby Bonus Scheme, the government will match your dollar-for-dollar contributions to a specific savings account, which opens up right after the birth of your baby. This unique scheme is known as the Child Development Account (CDA). You can benefit from these CDA savings to cater the expenses of your child’s medical, educational, and other healthcare matters.
To manage a CDA, you do not have to put up all your money or funds to this account at once. Establishing CDA is a flexible step, and you can continue contributing to it for about 12 years. According to the policy, these investments will be matched up to $6000 for your first two babies, after which it increases accordingly when you have more children.
3. Choose An Appropriate Bank For Your Child Development Account According To Your Lifestyle
Although, CDA provides a wonderful means to spare a significant amount of money for your child’s upbringing. Nevertheless, you can further add up to your savings by appropriately selecting a bank for your CDA account. Wondering how it will help?
Well, usually, three different types of CDA banks are prevailing in Singapore. These banks vary from each other depending upon the differences in the discounts they grant when you register with them. Presently, the three banks operating CDA in Singapore include the UOB Bank, the OCBC Bank, and the POSB/DBS Bank.
For choosing an appropriate bank, you can have a look on what types of discounts they offer to you, and which of them goes well with your lifestyle, income, and budget. Think about which of these banks give you an offer that will suit your child the most. For instance, the OCBC offers a special Baby Bonus card to its customers. With this card, you can enjoy various discounts on all your child-related activities. Suppose, if it is about the education of your child, you will probably get a 10% off on the lesson fees, and a 50% off on preschool requirements when you get your child enrolled in the Chinese enrichment program arranged at the Confucius Institute at NTU.
Likewise, the POSB Bank offers Baby Bonus NETS card along with a POSB Smiley child development account. With this card, you can avail discounts on various beauty treatments and massage packages. Hence, they make sure you maintain a refreshed look instead of appearing like an exhausted new parent.
4. Save Your Money On Various Family Activities By Investing In Yearly Passes And Membership Cards
Of course, you will be waiting for the moment when your child grows up to accompany you on all the family outings and treats. You will be desperate to hear all the lively chuckles of your kid in various fun-filled activities. However, have you thought of all the expenses such excursions would require in future?
It is better if you start planning now to save up for future. At that time, you will be relaxed to take your child to visit any place. Buying appropriate membership cards and yearly passes is a cost-effective way to achieve this goal. Such memberships will also help you get listed as a loyal returning customer, endowing various other exclusive benefits to you in future.
A typical example of such membership is the RWS Universal Studios yearly membership. As a member
of this place, you will receive a 10% off at in-park retail and all F&B outlets. Hence, they provide a cheap way to let your child enjoy the all the rides and other sites along with catering the meals of your family and accompanying partners. You will also get a 5% discount on stroller rentals, priority entries, and exclusive discounts on all other Universal Studio Singapore activities.
The other place, which offers wonderful discounts, is the Singapore Zoo – a must-visit place indeed. It is a perfect place to let your child learn more and more about the biodiversity and the animal life details. If you are a fan of this site and plan to pay recurrent visits, you can apply for a family membership and become the Friends of the Singapore Zoo to avail all the benefits. These may include complimentary tram rides during the weekdays, and 10% off at all F&B outlets available at all Wildlife Reserves Singapore parks.
In Conclusion
Parenthood is never easy as it is not a one time thing as it is a lifetime commitment. Sometimes we meet emergency issues in life and money do not just drop from the sky. Should you need any financial assistance, you can approach MoneyIQ Money Lender for more information.
