Ask the Expert Series: Post 2020 Budget

In line with the 2020 budget being announced last Tuesday, we are having a special Ask the Expert with Ang Hui Chin, Head of Financial Advisory at PolicyPal, where she will be answering your questions all about financial planning and preschool finances. So start asking your questions from now till Friday ?

Ask the Expert Series: Post 2020 Budget
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Huichin, we heard that you just gave birth two months ago, is it worth it to get a nanny during the first few months?

2y ago

Yes, my little one is 1.5 month old now and I did hire a confinement nanny. Is it worthy? It truly depends. First, it is important to know what the confinement nanny is here to do. Roles and duties of a confinement nanny: 1. Take care of your newborn, including bathing and changing them 2. Taking care of the mother during her confinement 3. Preparing herbal baths and red dates tea 4. Cook nourishing meals for the mother 5. Do simple household chores such as laundry and cleaning 6. Ensure that the mother gets ample rest during her confinement 7. Help guide the mother and the family through confinement 8. Guide you on breastfeeding and latching techniques 9. Help to teach the parents on how to handle the baby It can cost you $3,000 to $4,200 for 28 days depending on whether you engage them through a confinement agency or private nanny directly. Besides those cost, there could be additional fees as follow: 1. Groceries and herbs (anywhere from $800 - $2,000 depending on your c

I heard endowment plans has higher interest rates than banks. Is this true? Is the difference very drastic

2y ago

It is true that endowment plans offer higher interest returns compared to saving your money in a bank account or even fixed deposit account. A typical bank savings account offers around 0.05% p.a; fixed deposit of12 months offer between 1.5% p.a to 1.8% p.a. Short term endowment plans of 24 to 36 month tenures offers between 2.1% p.a to 2.5% p.a. with a minimum single premium. However, it is important to note that savings in banks can be withdrawn anytime with no penalty while endowment plan requires a time commitment. Like all traditional life insurances, early termination of the policy will lead to monetary loss.

How much does it cost to put my child in childcare public versus private? Will I get subsidies?

2y ago

Childcare fees in government affiliated childcare cost about $500 per month after subsidies while fees at private pre-schools can range from around $1,500 to $2,000 a month to over $5,000 for a 10-week school term at premium childcares such as EtonHouse. If your child is a Singapore citizen and is enrolled in a child care preschool licensed by ECDA, you enjoy the subsidies up to $300 per month (for working mums) and $150 per month (for non working mums)

VIP Member

For a parent like myself will I get additional $100 and my hubby will get additional $100 too?

2y ago

Hi Mama, parents with at least one Singaporean child aged 20 and younger this year will each receive an additional $100 in cash. And yes, that will mean that both parents are eligible to receive the additional $100. I believe the below link will have useful details. :) https://www.singaporebudget.gov.sg/budget_2020

VIP Member

What kind of insurance policies do you think is essential for your child? What did you buy?

2y ago

Hi Noor, I am a firm believer that the first 2 policies a child need to have is a hospitalization plan and a personal accident plan. These are small budget policies that can take care of big expenses should any little accident/hospitalization occurs. These are also the first 2 policies I took up right after my newborn is born. Education planning is the next on the list. We all want the best for our little ones and provide them with an opportunity to pursue their further education. Personally, I will not want to take excessive risk on investing this education fund. I'd prefer it to be guaranteed or with a very high guaranteed component. Therefore, endowment plans can meet this goal. Most insurers offer flexible education plans (endowment) which offers flexibility in selecting choice of payout and cashback options. On top of that, limited payment options are also available so that we do not have to pay the premiums for a long tenure.

What are some government incentives I should look into for preschool

2y ago

One of the initial yet substantial cost which parents incur in early years tend to be the cost of child care and pre-school. For most families who have working parents, childcare is often a good solution. To help make infant and childcare services more affordable, parents with Singapore Citizen children enrolled in licensed childcare centres are eligible for a Basic Subsidy of up to $600 for full-day infant care and up to $300 for full-day childcare. Effective January 2020, the Government will raise the gross monthly household income ceiling to $12,000 so that more families will benefit. The Government will also increase the subsidy amounts across all income tiers qualifying for Additional Subsidy. Currently about half the preschools in Singapore are government-supported preschools, but by 2025 the share of government-supported preschools will be about 80%. This means that more preschools are receiving government funding, and parents will then be able to place their childre

What is maternity insurance? Is it good for expecting mothers?

2y ago

Hi Almeida Maternity Insurance is a type of insurance policy that covers unexpected complications arising from pregnancy, which could affect either mother or child. The main purpose of the plan is to cover for pregnancy complications and congenital illness for the new born baby. The policy provides a one-time pay out to help offset the additional medical cost, which may be incurred, due to such complications. A maternity policy can exist as a one time standalone cover or a transferrable cover: To first cover the pregnant mum and the unborn child while pregnant and upon birth can be transferrable to the newborn without/with minimum underwriting requirements. I personally believe that it is a good to have these policies for expecting mothers as they tend to provide comprehensive pregnancy complications and congenital conditions compared to the normal plans which might cover them. Moreover, I had plans to purchase an education plan for my newborn upon birth. Hence, I had opted for

How much monthly expenses are sufficient for child care costs?

2y ago

That will depend on the child care which we enrol our child in. The range of fees can be wide from $600 in government affiliated child cares to $1500 in mid range private childcares to $5000 for 10 week school term in premium childcare such as Etonhouse. On top of that, childcare related expenses could include additional cost for sending your child to extra activities and interest group out of school.

VIP Member

What does it mean to properly prepare for the future?

2y ago

Sure, happy to do so. :)

Thanks for sharing