4 Important Costs To Consider Before Deciding To Start A Family10 Aug 2021
Source: The Simpsons
Starting and raising a family can be one of the most rewarding life experiences you’ll go through. But it also means big changes to your lifestyle, as well as your budget. So it’s not a decision to be taken lightly and requires careful consideration.
In Malaysia, the costs for raising a child are becoming increasingly expensive. So getting your finances in order should be your priority before anything else. Here’s what you will need to account for:
Car and housing loans
Purchasing a new car and home may very well be one of the most expensive investments you and your partner will ever make. Some couples choose to do so before welcoming a child, and some only look into it after having a baby. The right choice will be the one that suits your needs and circumstances the best.
Car and housing loans will take up a huge chunk of your monthly income, so you and your spouse will need to think carefully about how much both of you can comfortably afford to pay each month.
You will need to budget for the must-haves such as baby food, clothing, diapers, breastfeeding accessories, car seat, stroller, bath and toiletries, a crib and other nursery furniture.
If you and your spouse are working, and your parents are either not able to help care for your baby, or they need an extra pair of helping hands to do so, you will need to engage the services of a babysitter or a live-in domestic helper.
Once you are expecting, you will need to go for regular check-ups every month. Then, there’s the delivery of your baby (whether via normal birth or Caesarian), postnatal care, plus regular checkups and immunisations for your little one during the first year.
The costs for all these will depend on whether you opt for public or private healthcare.
You will also need to account for your child’s long-term health needs such as medications for fever, coughs and flu, and treatments for any injuries he or she may encounter.
Source: Gif Bin
Your child’s education
As your child grows up and starts school, your next priority will be his or her education.
These days, many parents are choosing to send their kids to private schools and universities, as they believe the curriculum produces more well-rounded students. It is also well-known that private education doesn’t come cheap. Long-term affordability is important, so be sure to take that into account before you decide.
Here is an in-depth look at public and private schools, as well as public and private institutions of higher learning.
Besides school and tuition fees, you’ll also have to factor in additional expenses for things like school uniforms, textbooks, stationeries, field trips, extra tuition classes and extracurricular activities.
Starting a family is an exciting decision, but a big and expensive one. Being financially and mentally ready will prepare you for the long-term commitment ahead.
You should also build an adequate insurance portfolio to ensure your family is financially protected from unexpected events that can lead to hardships. This is especially important if you are the sole breadwinner. Take a look at the plans we recommend here.