Budgeting to Welcome a Baby?

Are you Financially Prepared?

You baby is your bundle of joy. For this delicate little one, you are willing to compromise on every front. For many parents, having a new addition means many things including reprioritising one’s family finances. For others, it could mean budgeting.

In a recent research conducted by a university professor, raising a child up to the age of 20 costs an average of about $360,000. This works out to about $1,500 a month during this span of time. So depending on how far down the road you want to plan for your baby, it is always worth looking into family finances to kick start this long road ahead. For a start, here are some short-term considerations:

Delivery budget

Choosing between a private and public hospital has an immediate impact on your finances. Depending on your budget, you will need to choose your hospital, ward, obstetrician and even confinement package wisely.

Infant care

Mothers are entitled to four months of maternity leave in Singapore. After which, working mothers have to decide on their desired infant care arrangement. If you decide to place your baby at an infant care center, this would mean incurring an additional monthly expense. Mothers who choose to leave their jobs to be the main caretaker will have to decide if the family can survive on a single income or make necessary lifestyle adjustments to compensate the income shortfall.

Emergency reserve

Having a baby always mean incurring unexpected costs every now and then. It could be a nasty bout of cough that takes weeks to recover from or even a fall that requires medical attention. Consulting a pediatrician can sometimes set you back by hundreds of dollars. Knowing that you have six months worth of emergency reserve allows you to prepare for such incidences.

Health Insurance

Health insurance is affordable when your child is still very young. Providing adequate health coverage for your baby is important for the family in the long run.

Life insurance

At birth or in the weeks that follow, complications can occur if a baby is born with a defect or prematurely. In Singapore, there are about 100 cases of stillborn babies each year. There are also cases whereby babies are born with no apparent abnormalities at birth, but pass away weeks later owing to conditions that were not detected earlier. Considering a baby’s mortality seems morbid, but it is still something that we should think about.


Medical check-ups, vaccinations, formula milk and diapers can weigh heavily on your pocket. Shortly after birth, many babies require a night or two in the hospital if they develop jaundice that requires medical attention. Depending on your lifestyle and disposable income, you might need to tweak your way of life to accommodate the needs of your newborn.


It can be overwhelming trying to attend to every aspect of your finances all at once. The key here is prioritising and checking off items that require immediate attention. As time goes by, focus on long-term plans such as retirement funding, educational funding and even re-writing your will to reflect changes in your life.

For now, find out more about health insurances by requesting for a professional consultation.

Get a free insurance for your baby and Huggies Platinum Diaper pack.





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