Baby Steps to Financial Security: A Guide to Financial Planning for Your New Arrival

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Baby Steps to Financial Security: A Guide to Financial Planning for Your New Arrival

Few events in life are more exciting than the birth of a first child. When your firstborn arrives, everything changes. Amid the incredible exciteme

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Few events in life are more exciting than the birth of a first child. When your firstborn arrives, everything changes.

Amid the incredible excitement of picking out names, browsing prams and car seats, and the first glimpses of the baby’s wiggly fingers and toes at scan appointments, there are other vital but perhaps less exciting tasks to add to the list.

Preparing financially for the birth of a baby is a must. Changes to family finances are inevitable at this stage of life. As well as having an extra mouth to feed, there are expenses like nursery and school fees to pay for in the future. Family income may also change to accommodate parental leave and caring responsibilities.

To ease expectant UAE citizens into parenthood and ensure financial changes unfold with ease, Hayah presents this guide to budgeting for five critical, baby-related expenses.

This resource aims to empower soon-to-be parents with advice that will help them navigate the financial landscape of welcoming their firstborn.

1.    Birth and Delivery

Private health insurance usually covers most of the costs associated with prenatal care and the delivery of your baby in the UAE. However, it’s savvy to be sure what your insurer will and won’t cover. Be sure your policy covers a normal delivery or medically required caesarian section, and regular checkups through your pregnancy.

Without full insurance cover, giving birth in a private clinic can cost upwards of AED 12,000. If your pregnancy is higher risk and requires extra check ups, you are expecting twins, or there are complications before, during or after birth, costs can quickly add up. We strongly recommend you look for the very best private health insurance so you do not find yourself out of pocket.

Want to make your baby’s entrance into the world and your first few days as parents as comfortable as possible? VIP maternity packages come at a premium but also bring peace of mind, extra help from expert nurses, and the best possible start for your baby.

2.    New Baby Equipment

For such tiny people, babies need a surprising amount of equipment. While you are expecting, you’ll need to set aside funds for:

  • Creating your baby’s nursery
  • A safe, comfortable place for baby to sleep
  • A pram or stroller
  • An infant car seat
  • Clothing and accessories
  • Breastfeeding or bottle feeding equipment.

You can purchase these items to suit your budget planning. Opt for a palatial nursery and state-of-the-art pram, or choose to direct more of your funds to saving for your baby’s future.

3.    Child Care Plus School and College Fees

For most parents in the UAE, the largest long-term expense is childcare and then school and college fees. It’s well worth deciding and budgeting for these as early as possible. Here’s why.

The cost of childcare in Dubai varies according to how many days you need and the type of childcare you use. You might want to use a daycare centre or you may prefer to employ a nanny or au pair. You or your partner may wish to work part-time hours or stop work completely to take care of the baby. Whatever you choose for your family, there will be financial implications to plan for.

Although schooling is further into your baby’s future, school fees in Dubai can be costly, so you should begin to consider them now. There are many outstanding schools in Dubai to choose from. Find potential schools that would suit your family now, register your interest and inquire about their fees. This way you have plenty of time to budget and prepare.

Although it feels like forever away, you might dream of your child heading to college or university. It’s never too early to start a college fund for your child. By starting a savings plan now, you can make your money work harder for longer and open up a world of possibilities for your son or daughter.

4.    Medical Bills and Health Insurance

It may feel unthinkable now, but if an accident, long-term illness or medical emergency affects your baby, then you would want only the very best care that Dubai hospitals can provide.

Protect your baby’s well-being and ensure they get the best care possible throughout childhood by opting for the best health insurance policy.

An excellent health plan from an insurance company in the UAE will provide the following from birth:

  • Both inpatient and outpatient care in the best private UAE hospitals
  • Cover for medical emergencies as well as chronic, pre-existing or long-term health conditions
  • Lab work and investigative work like X-rays and scans
  • Physiotherapy and alternative medicine
  • Dental and optical services, etc.

Remember, you want comprehensive, reliable cover that will bring you peace of mind.

5.    Life Insurance

It’s never been more important than now to consider what would happen if you lost your life or became critically ill or unable to work due to a disability. Protect your growing family by putting excellent life insurance into place.

Should the worst happen, the best life insurance policy will take care of you or your family’s finances.  You can secure a bright future for your child no matter what, with your plan continuing to provide for their day to day living expenses, home and education.

Life insurance for new parents is a must. Flexible plans and payment options mean that everyone can feel peace of mind when it comes to their baby’s future.

Three Ways to Safeguard Your Family’s Financial Future

There are three straightforward ways to navigate the financial changes that having a baby brings.

1.     Plan Ahead

One thing is for sure; your baby won’t stay tiny for long. Stay one step ahead and always know how you will meet the financial needs of the next stage of their life, whether that’s nursery, school or college. Thinking ahead gives you time to save and grow your money and then put the best-laid plans into action so you can watch your child thrive at every stage.

2.     Opt for the Best Insurance Plans

Don’t compromise on high quality health and life insurance plans. These will ease your potential worries and help you enjoy your baby’s childhood, knowing that your family will receive excellent care no matter what happens.

3.     Research Great Savings Products

Plan for a better future by investing your savings in products that work for you and your family.

Flexible plans can help you pivot when the needs of your growing family change while still providing excellent long-term outcomes for financial goals like college funds.

About Hayah

Hayah provides health and life insurance plans, and savings and pensions products. The company is on a mission to transform the landscape of insurance, empowering people through education about insurance, personal risk and savvy financial planning. Hayah is proud to have supported over 150,000 individuals and businesses in the UAE so far by safeguarding their finances and providing a brighter future.