Raising a family will take money. While maintaining good cashflow and budgeting are important, there is no need to set aside a huge contingency fund if you shop around wisely.
For example, the cost of delivery and pre-natal care can vary greatly depending on which hospital or doctors you choose. You can also choose to use Medisave to offset the delivery and pre-delivery medical expenses. In addition, some insurance policies also cover pregnancy complications.
Here some costs you will need to consider when planning for a baby:
1. Pre-Delivery medical expenses, delivery expenses and daily hospital charges: $3000-$5000
2. Pregnancy needs and preparation for baby’s arrival (estimated first year costs: between $1,500 - $5,000)
i. Maternity clothes
ii. Books and other support materials.
iii. Car seat, $150-$500
iv. Baby cot, $100-$400
v. Stroller, $100-$800
vi. Baby clothes
vii. Milk powder
xi. Breast, $50-$800
xii. Cord blood banking, about $800 monthly
xiii. Confinement nanny, about $2500-$3000
3. Getting house in order:
i. Protecting against own liabilities like car loans and outstanding mortgages
ii. Protection against critical illnesses (comprehensive health plans to cover pregnancy plans)
iii. Control your debts: not more than 35 percent of take-home pay should go to debt payment