Insurance, interest rates, and other hidden costs – here’s the breakdown.
Let’s admit it: adulting is tough. Settling the finances? Everyone dreads it. We feel you, especially when it comes to the major milestone of starting and raising a child in Singapore. It’s easy to get caught up in the fairytale notion of welcoming a little one to your humble abode, but don’t forget to put aside enough reserves. Here are some hidden costs you shouldn’t overlook!
1. Home and child insurance
Insurance is a big topic to tackle. There are so many providers in the market, with a dizzying range of plans – where do you even begin?! Luckily, we’ve got just the thing. When it comes to starting a family and being a new homeowner, the standard home insurance might not be enough. For example, did you know that you can get Enhanced Public Housing Contents Insurance that even covers you for services like pest control and plumbing? These details matter and can save you from a load of trouble down the line!
MoneySmart has come up with a nifty home insurance comparison platform; think of it as the Skyscanner equivalent for insurance. All you need to do is to key in the relevant details, and voila! A list of relevant insurance plans will pop up with all the necessary information, such as coverage, liability, annual premium and others.
2. Housing loan interest rate
The euphoria of finding your dream home for your family feels like magic. However, chances are, you’ll be slapped with a hefty housing loan that spans years. Besides portioning out the monthly payment, don’t forget about the corresponding interest rate! Depending on your bank, this interest rate roughly hovers around 1% to 2%.
3. Car insurance
When you’re taking care of little ones, public transport might not be the most convenient. That’s why many parents or parents-to-be would consider getting a car. And with it comes other costs to consider, namely, car insurance to protect your new mode of transport. Aside from the most basic car insurance that only covers damage to other people’s property, have you thought about a comprehensive plan that covers hidden costs like car’s repairs and replacement costs? MoneySmart’s car insurance listings have all the details you need to find the perfect plan for you.
4. Childcare costs
If both you and your spouse hold full-time jobs, it’s imperative to think about childcare once maternity leave comes to an end. If you’re planning on hiring a domestic helper or sending your child to a childcare centre, these will incur additional costs. Don’t forget to factor in transport to the childcare centre, uniforms, learning materials and so on.
5. Medical expenses
Speaking of childcare, more exposure to others may result in them falling sick more often due to close contact with other kids. It’s inevitable! Even if your kid doesn’t go to childcare, a weaker immunity system might cause them to routinely come down with coughs and colds. Do set aside some cash to cover any medical expenses.
Curious to know more about all things numbers-related, especially on the insurance front? Check out MoneySmart’s recently published white paper, containing insights for better customer experiences in Singapore in the insurance sector. Making sense of all the numbers is easier with MoneySmart’s handy breakdowns!
This post is in partnership with MoneySmart.