How do you show your love to your children? Perhaps it’s in the hugs and kisses, the delicious home-cooked meals and in the million tiny things you do for them on a daily basis. But did you know that one of the best ways to show your love is to take care of yourself first? Contrary to popular belief, taking care of yourself first is not selfish – after all, you can’t pour from an empty cup. By taking care of yourself – be it financially, physically or emotionally – you can ensure you’re in a good place to weather any storm life might bring.
Here are some ways taking care of yourself can safeguard your family’s financial future – no matter which life stage you’re at:
- For Expecting Parents
Congratulations! You are on your way to becoming parents. In between all the excitement, it’s also important to think of the practical stuff. As pregnancy and childbirth can be risky, one of the first things you should do is consider getting maternity insurance. Offered by most of the major insurers in Singapore, you can get maternity insurance from the 13th week of your pregnancy, and it lasts for three years. It covers both the mum and baby from pregnancy and childbirth complications. Furthermore, you can obtain hospital benefits should your baby be born with any congenital diseases or juvenile conditions.
Pregnancy and childbirth can be risky. The cost incurred for treating complications can also be really high, so insurance will help put your mind at ease.
By ensuring you are adequately protected, you can focus on enjoying your pregnancy knowing you are well-prepared to handle any challenges along the way.
Besides getting your own private insurance, you can also tap on the various government schemes to help offset some of your expenses where possible. the government has many ways to help young parents cope with the costs of having a baby. It’s always a good idea to make the most out of government schemes and subsidies to offset some of your expenses where possible.
- For Parents with Young Children
As your children grow older, it’s important to ensure that you and your spouse are financially prepared for a whole array of needs. Insurance plans are crucial at this stage, for hospitalisation and illness can take the lion’s share of your savings. There are many different types of insurance policies out there but here are some of the most important ones you need for both you and your children:
- Hospitalisation Insurance
- Critical Illness Plan
- Term Life Insurance
As for yourself, it’s also time to consider what happens in the event that you are unable to work due to unforeseen circumstances, especially now that you have dependents. Here are the plans you should have in place for yourself:
- Disability Income Plan
- Long-term Care Insurance
- Estate Planning and Will-writing
- Special Needs Trust
When you have the adequate insurance protection in place, you can focus on raising your children and enjoying all the important moments, without riddling yourself in anxiety over what if situations.
- For Your Child’s Healthcare Needs
All Singaporean Citizen babies are entitled to a MediSave Grant for Newborns, which is opened by the CPF Board, when you register your child’s birth. A grant of $4000 is automatically credited and it can be used to offset MediShield Life, a default insurance for all Singaporean babies. However, MediShield Life only covers subsidised treatments in B2 and C wards of public hospitals. If you want coverage for your child to be cared for in a private hospital or higher-class ward, you can choose to purchase an Integrated Shield Plan (IP), provided by private insurance companies.
For example, MoneyOwl’s Child Protection Plan protects your precious little one against key life risks such as early critical illnesses, and covers hospitalisation at private hospitals (with a 5% co-payment). It also offers a payout benefit, giving one parent the option to stop working to care for the child, without worrying about the loss of income.
- For Your Child’s Education Needs
Next to your child’s health, his or her education is probably your biggest concern. Childcare, infant care and school fees can add up to quite a bit so be sure to utilise the help given by the government. The Baby Bonus Child Development Account, which can be opened up to 2 months before your estimated delivery date, is a special savings account that begins with an initial deposit of $3000 and a co-matching cap that increases with the child’s birth order. There are also regular contributions by the government to your child’s Edusave account which is transferred to a Post-Secondary Education account when your child turns 13.
You can also consider starting a joint investment account with your child with MoneyOwl, a financial advisory and fund management company. These investments can help to grow your savings that can later be used for your child’s university education fees. Furthermore, your child’s access to the account means that in the unfortunate event of your demise, the money will not be frozen.
The steps outlined above are a good start to ensuring your family’s financial future is secure but for a more detailed guide, download MoneyOwl’s e-book: The Ultimate Guide To Giving Birth and Raising A Child In Singapore.
MoneyOwl is a bionic financial advisor that empowers fulfilling lives by helping people make wise money decisions. As a social enterprise, they believe in putting you at the centre of everything they do. To them, being wise about money is about having a sensible and balanced outlook on life. They take a holistic approach to financial planning that takes into account national schemes like CPF in order to craft a customised plan best suited for your needs.
Download the e-book and start taking care of yourself today for your family to have a better tomorrow.