Children may be the best gifts for us, but they certainly do not come cheap. From diapers and milk formula to pediatrician visits and education, being able to afford the essential expenses involved in raising a child requires a great deal of financial planning. In fact, the average cost of raising a child from birth to the age of 21 in Singapore is estimated to be around S$300,000 (US$220,460).
Besides getting your newborn a hospitalisation and accident plan (which are essential considering how often children get sick and injured), you may also want to consider an endowment plan that will help you cover the cost of your children’s education fees when they get older. A financial advisor can help you formulate this plan.
This may also be an opportune time to look at your existing plans and ensure that should anything unfortunate happen to either or both of you, your children would still be provided for. A financial advisor, along with an estate planning attorney, can develop an estate plan for you.