Five factors to consider whether you are ready for a baby
Most of parents-to-be may wonder how much it costs to raise a child. Although "money" is the main concern for them, how to raise children can vary from person to person. There is no model answer for that.
Instead, it is more important for couples to have a well-thought-out plan before being new parents. They should not only pay attention to maternity expenses, but also think about other long-term expenditures. The costs of raising a child can rise immensely, so it is a must for parents to make a financial plan for their children towards their lifelong development.
- Update your own and your family's budget
The finances of your family should be more transparent when you are parents-to-be. Let your other half know about the financial strength of both families to make a practical budget and saving plan.
Do you have enough room for one or more new family members? Will you need to buy or rent a new house? Will you need to live closer to your parents so they can look after your child? Are there any suitable nurseries or schools nearby? If you have to move, think ahead about which school you want your child to attend to avoid the cost of moving again.
Will you ask your parents to take care of your child? Can you manage to live on a single income if one of you gives up the job? Reaching consensus with your partner and asking if your parents are able and willing to help before having a child could prevent from changing your plan in a hurry after you give birth. Also, think of additional accommodation and expenses if you need a domestic helper.
The education cost is being heightened because parents always have high aspirations for their children's achievement. Apart from the free education provided by the government, parents may also think of private and direct-subsidy schools. In addition, playgroups, special interest classes, private tuition and studying abroad become increasingly popular. Parents should plan ahead and set up an education fund for their children's education.
- Long-term planning
You will take on more responsibilities once you become parents. If you are the family breadwinner, you should consider buying life insurance for you and your partner and medical insurance for your child. Moreover, parents should consider making a will as soon as possible for not only financial arrangement but also to appoint a guardian for children who are minors (below the age of 18).