The Cost of Starting a Family
finance and productivity | Wednesday, 02 Aug 2017
In sickness and in health, in hardships and in wealth— those are often promises made by two people in their celebration of love. In fact, love is an exciting and wonderful part of life, and couples bubble with joy as they anticipate their new lives together. Most move into new homes— they buy new furniture, and for some, they start making plans to expand their family with little ones.
There’s a lot that goes into family planning. It is both exciting and arduous, joyful and sometimes a little scary too. But if you get an early head start by planning and setting financial goals with your loved one, you will spare yourself the hassle of worrying later. Sound financial planning isn’t as difficult as it seems, and it goes a long way in comfortably providing for your family.
The first step is to get acquainted with the costs that you may be dealing with in the future. Having a child in Malaysia, though not necessarily expensive, isn’t cheap either. There are many costs to be considered and other unforeseen expenditures to prepare for.
Here’s a simple breakdown of what you may expect when you’re expecting:
Financing your future
The total cost of raising a child in Malaysia lies between RM 400,000 to RM 1.2 million, and its variation highly depends on how and where you would spend on your child’s education— from state and private schooling, to local and international universities.
It’s a hefty amount to spend, and rather than worrying later about your finances and savings, it is always better to plan ahead to ensure you’re able to weather out financial bumps comfortably and provide the best for your little one.
While there isn’t a one-size-fit-all solution to finance your future, a savings insurance plan is a way to get savings and protection in one plan. Alternatively, education insurance remains a popular choice for new parents. At Allianz, the provides a comprehensive solution to your child’s future education needs, with flexible payment terms and guaranteed education benefits the moment your child enters his or her tertiary education.
In addition, you can protect your home as a way to safeguard your savings. After all, your home is your family's sanctuary. Allianz’s Smart Home Cover provides coverage on home theft and damages that could be costly and inconvenient to you and your family. These includes protection from fire, burst pipes, damages to household goods, personal effects and possessions, lost of rent, floods and theft.
Aside from savings, investments and insurance, you could also take advantage of various providences by the Malaysian government. To further help ease the financial burden of Malaysian parents, the Malaysian government provides the following assistance and tax reliefs:
Having a family doesn’t have to be an overwhelming financial undertaking. Once you get a realistic grip on the expenses you’re likely to face, you’re heading the right direction. With some advanced planning, and the right insurance plan, you’d be able to ensure that you and your loved ones are well protected.
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