If you have followed my blog, you must have known that I am actually a very new parent myself. Only after being “promoted” to fatherhoods, I got to learn that a child really takes up a lot of my time and also money.
With the arrival of the new baby, I have to be smarter with the household budget, I am trying to understand the baby economics; The fluctuation price of diapers & milk formulas which the price vary from different stores and the effect towards the behavior of the customer. I have been thinking lately of trending those item so my budget on my baby’s stays at a fixed cost.
Raising a child in Malaysia can be expensive. A calculations made found that it would cost RM1 Million to raise a child and have that child finish university in the country.
As parents, it is natural to want what is best for the child. This includes the best in education, the best in nutrition, the best in exposure, the best in skills… you get the picture. Let’s not even go to the best of the bests; let’s look at basic childcare costs.
During first 6 months, your baby will be breastfed and/or fed milk formula. Looking at the figures, a total of RM547.58 is the minimum required each month to feed your baby. When your baby is ready for more solid food options, you will have to pay more in addition to the list on top. Although the list above isn't comprehensive, it gives you a peek at some of your baby's most important monthly expenses. So, be prepared to prioritise these items in your budget list.
In iMoney.com’s article “How Much Does It Cost To Have A Baby?”, it was estimated that the total cost for the first year of a baby was RM24,500 if the baby was sent to a day-care or babysitter and RM15,500 if it was not sent to a day-care or babysitter. The article goes on to say that the cost can come down if pre and post-natal check ups and the delivery are done at public hospitals. As per below:-
Having a child is a life-long commitment. As they grow older, you will need to consider other costs such as their education and hobbies. However, it will be worth it as Nicholas Sparks, a famous author once said, “What it’s like to be a parent: It’s one of the hardest things you’ll ever do but in exchange it teaches you the meaning of unconditional love.”