The most important thing that a parent should strive to do is to give their own kids the best head start for their life. No matter what happens, you always try to afford as much as you can for the benefit of your child in order to provide them with the best
chances in life. You always seek for good schools where they can get proper education and also you might have to send them for expensive overseas education! Even schools in Singapore are also very expensive ones! There are times when you have to provide all these things at the expense of your own financial security. This is when you can opt for licensed money lender Singapore who can help you during this phase of your life.
How much does it cost to raise a child in Singapore?
It is very to answer this question because it is notoriously difficult. It is not possible to provide an average estimation of the variance can be very much extreme. For example, the choice of the hospital where a baby is born is always different and on hospital can charge you up to 5 times of the other one. On an average, it can be $79,000 to $192,000 or more. But this cost does not include the cost of paying for holiday trips or any university education. Is it justified to spend a huge amount of money for your children?
There is a very common English phrase which says “You can’t take care of others unless you take care of yourself first”. It is a very practical saying and all of you parents or future parents should always remember this!
While your children grow up, from the birth time there is a countless number of expenses and when they grow up the expenses also changes direction to a number of fields. But we should not forget that we must ensure that while risking all these expenses we should not let our financial future to get compromised.
What does it mean about taking care of your financial future?
Taking care of your financial future simply includes the following points:
1. You should have all kinds of health insurance policies placed so that in future if you get ill or you need an operation or something like that, you can use the insurance.
2. You should build up a number of streams of passive income. It might be some annuity plans, payouts from CPF life, income from investments like rental income from your properties or stocks and bonds.
3. You must clear all of the financial obligations that you won, such as car loans, property loans, personal loan, business loan and many more. Or else you should have a plan so that you are ensured that you have sufficient passive income in order to cover all your basic living expenses along with these loans.
What will happen if you fail to take care of your own financial future?
In case if you fail to take care of your own financial future then this burden has to be taken or passed on to our own children. They have to provide you with the shortfall in your needs. You should think hard about this. No one knows what kind of financial challenge the next generation is about to encounter. The expectations we which we have now are based on logic. This logic is nothing but if a child studies hard and work hard, he/she should be able to find a decent job in Singapore.
The financial planning of your child starts with you only
Though this is not proven to be a right logic with many other developed nations in the world, across the European Union, the countries like Greece and Spain are seeing a huge number of unemployment as well as tertiary educated individuals. The percentage of this deficiency is 27.6% in Greece and 21.6% in Spain. The most frightening of all is, however, the statistics of the youth employment rate is close to 50% in both these countries. The developed economies are doing well at a medium rate but the statistics we see in not at all good. The unemployment rate (tertiary) in the United States is 7.2% and unemployment rate (Youths) is 11.6% and these rates continue like 3.3 % and 10.5% in South Korea, 4.6% and 14.6% in Australia, 3.9 and 14.6% in the United Kingdom and 24.7% in France in the case of the unemployment rate of the youths.
It is very clear that the future generation is going to face more challenges every day than you have faced earlier. There is no guaranty that their income is going to rise in this situation where the cost of living is surely going to be much higher than now. Not only your children have to bear the highest cost of living but also they have to take care and bear the costs of their own child’s also. The main question is that whether your child will be able to take care of his own financial expenses and also afford to take care of you also without destroying their own financial future.
It is natural as well as cruel that your children should take care of themselves and their family at first and then think about taking care of their own parents. The first 10 years or so is the most important for ones working life as it determines the future of that person only.
At the end of the end, everyone is under the control of their own money! If you think of spending $200,000 on the overseas education for your children, you should also save some for the later years. The main point is the desire of you about providing best opportunities for your children should not come in the way of your own financial future! For this reason, only you can also borrow some money from money lender Singapore in order of the well being of both your child and your future. So don’t worry and take actions before your time ends!