Have you been thinking about having another child? Wondering if you’re ready for another child financially? Do you feel a dilemma when considering the projected expenses of having more kids? These are very real concerns when it comes to family planning. After all, the cost of raising a child in Singapore was estimated to be around S$670,000 in 2019!

These days, parents usually pay for education fees starting with infant care or childcare in addition to basic needs like diapers and milk. There are also activities and enrichment we hope to expose our kids to, so they can discover their interests and talents.

With realistic financial planning done for the family, reaping returns through your insurance plans, savings and investment plans is one way to be more financially prepared for another baby. That’s why planning ahead with clarity is important at different stages of your life.

Are you financially ready for another child? Read on for some of my personal financial tips as a mum of 2:

Prioritise and be in control of your budget

Depending on the expected age gap between your older child and the baby that you’re planning to have, you might be able to reuse some of the older kid’s items.

Are there other ways to keep baby’s expenses lower?

• You can save money by reusing your older child’s clothes, toys, strollers, and car seats instead of buying new items.
• Accept hand-me-downs from friends, or partake in a swab and save arrangement with friends or other mummies’ whose kids have outgrown their toys, books, clothing etc.
• Decide on the best childcare option for your family: helper, in law’s, nanny, infant care or others?

Some parents may feel that it’s unfair not to have new things for the subsequent kid(s) but we’ve to be realistic. Every cent saved is a cent earned which can go into important things like their health care or education funds. Additionally, it helps to reduce purchases and reuse things with Zero Waste efforts.

I enrolled my second child in infant care, and he will start ‘school’ at 3 months old. We don’t plan to hire a Foreign Domestic Helper (FWD) and our aged parents aren’t able to support childcaring at this point, so we need to be practical about our options. I really couldn’t bear putting him in someone else’s care, but both my husband and I are working, so reality helps us prioritise our needs and wants.

With such arrangements in place, I’m thankful that mums have the Working Mum Subsidy to save on infant care and childcare fees. You can deduct school fees from his Child Development Account (CDA).

When it comes to personal and family budgeting, I’ve always kept an Excel sheet to keep track of expenses. When you know how your finances look like, you will also be determined to allocate the respective percentage % to each different account – savings, education, retirement, and spending on whatever you want.

The costs of having a newborn in Singapore

As I’ve bought the pre-natal insurance, I’ve since transferred the life plan that was attached to my maternity insurance plan upon his birth, without any medical underwriting. I chose my baby’s medical coverage as the first insurance to get. The uncertainty of a fragile new life is a key concern for parents.

Here are some things to note when you’re expecting:

• Gynaecology visits, medication, and prenatal tests for foetus
• Delivery charges for childbirth – this depends on the choice of hospital, delivery procedure and duration of stay.
• Paediatrician fees for newborn health checks and tests, and vaccinations

Financial support and grants for new babies in Singapore

One of the good things is the perks that newborns in Singapore are privileged to enjoy. As Gordon is our second child, for his CDA, he received the First Step Grant ($3,000 cash) and the Government will contribute accordingly. Since he was born in 2021, he received a one-time cash gift of S$3K, which is an additional Baby Support Grant from our Government for babies born during this COVID-19 pandemic too.

This extra monetary support will help to offset Gordon’s infant care school fees, and other essentials too.

What’s more, there is also the Baby Bonus scheme, which is different from the CDA. If you’re planning to have more kids, parenthood grants and financial support will be useful. Coupled with your family’s projected cost of raising kids in Singapore, there will be better clarity to see if you’re financially ready for another child.

Planning for your finances with multiple kids

Our children’s needs change as they grow. With more than 1 child, you and your partner will need to discuss these money matters and stay objective.

Take for example, their education fees.

The cost for infant care or kindergarten is higher than primary school fees for Singapore citizens. When your child is in primary school, you may enjoy some “savings”, but there may also be other projected expenses such as out-of-school enrichment and tuition.

You might decide to move to a bigger home to accommodate more kids or care for your ageing parents. You should consider retirement, healthcare, and new homes as your children grow older. With savings, insurance or investments in place, these large ticket items can be within reach with the right tools in place.

I hope these tips shed some light on what to discuss and think about. With some smart family budgeting and a clear financial roadmap planned out, turning financial concerns into financial confidence is possible. Know that you are not alone when it comes to family planning and financial management matters. Feel free to get in touch for a complimentary consultation to find out how.