Blowing away budget on your child ?
Posted: November 23, 2007Recently, I received an email asking if I am interested to do a survey on how much I spent on my child. I immediately volunteer my time to do so. Well, the survey is not posted to me yet but I cannot help but hope to wait to share my financial experience.
I recalled that my budgeting for a new family member, my daughter started when I am 5 months pregnant.
My first thought was to have a saving investment account for my child ready for her higher education. When I called upon my financial planner to do the calculation, I cannot imagine the figure he has done up ! ( based on compounded inflation rate of the university fees and economy inflation) the sum is quite an heavy sum of saving. If we will to consider sending her overseas, the amount is at least 1.5 times more ! Thus, I went on an aggressive to moderate investment plan for her saving, hoping to see the $ grow so that she has enough to go for her degree. If not, she has to be smart enough to be on top 5% list of genisus in Singapore before she can be entitled to a scholarship with totally free schoolfees !
Second priority is to have medical insurance to cover her. Children insurance are cheaper than adults as such they should start insurance young. Thanks to my wise decision, during the 5 years of rearing my daughter, I did use insurance to cover some of her hopsitalization bill.
Thirdly, was insurance coverage for ourselves so that in event anything happen to both of us. She will have enough $ to see her through her 21st years old. However, I still believe that my God will bless us and see me through the good years to see her grown up !
You cannot imagine that till today, I still keep all the receipts of my expenses on my child since her birth to first year. This is the year that our expenses get blown away but we do not feel any regret about it. We have given her the best and over-given her in the first year.
Now she is 5 years old, her expenses is even higher than her daddy’s but lower than her mummy’s. Daddy spent very little and save a lot ! Mummy spent quite a lot more than daddy. Her childcare is the best in the area we lived in. With that, the fees is also high. Her curriculum courses on Shichida class, Arts class and coming swimming class will be another sum. Beyond this are all the books and arts and crafts materials that mummy buy for her learning. That is quite a amount each month. I am praying that another child will come along so that some of these items can be shared and can be amortized between the two of them.
All in all, we love our little Sammi and we do spent on her, giving her the best but not overly indulge in her. It does not mean we do not budget. We do budget per month. There are definitely some months that are exceptional. These months are near year end where her birthday, Christmas season and holiday seaons starts. These are the months now ! sigh ….
