“The first year of your baby’s life has certain cost implications, but between the ages of one and three, your toddler comes with its own unique set of costs. They are more social, attending birthday parties and might be going to a playschool or a childcare centre. The best thing you can do is to be financially prepared for them,” says Ester Kali, Executive of Retail and Business Banking at FNB Namibia.
Kali says many parents decide to enroll their toddlers in a childcare facility, because their social skills are more established, and many agree that learning through play is beneficial for their development. Whether deciding on a crèche or playgroup or both, Kali says parents should do their homework. “You need to ask whether you and your toddler are getting value for your money,” said Kali. “Different facilities offer different services. Do you want a day-care, crèche or playgroup? Some facilities ask you to bring nappies and toiletries, while others include this in the cost. Decide on what you want and ask whether you and your toddler can have a trial run.” Once the decision has been made about childcare or a playgroup, or both, this needs to be added to the budget.
Kali also offered more tips: “Find out if your child’s school offers any sort of discount for early payment. It’s a good idea to use your bonus to pay for your child’s annual fees, as you might get a discount if you do this. If you have two or more children at the same school, it might be worth asking if there are discounts for the second and third child.”
Other costs one has to take into consideration are birthday parties, to which you are expected to bring some gifts. “When attending other children’s birthday parties, try and find toys that work for both boys and girls like puzzles, play dough or bubbles. You could buy a variety of these toys in bulk, and even better if you buy them on special. Then bring them out whenever you have a party to go to,” says Kali. “For your own child’s birthday, try to be cost conscious, hosting at home will save money and asking friends and family to help bake will go a long way. To be even more financially savvy, instead of asking for presents, ask close family and friends to pay small cash sums to an account that will go towards saving for your child’s education. You will be surprised at how quickly these small amounts add up over the years, and you will also be surprised at how relieved adults will be with this simple option. Another cost to think about is that when your child goes to crèche or preschool, their immune system may be compromised due to being exposed to the outside where they come into contact with germs. Kali said it would also be a good idea to double-check what sort of medical aid plan you and your family are on. She suggests that you call your medical aid and perhaps re-evaluate your needs and the plan you’re on. “As your child grows, their needs change and your budget needs to adjust accordingly. The best way to stay on top of this is to be financially responsible and re-evaluate your budget on a regular basis,” according to Kali. She adds that a flexi fixed deposit account from FNB Namibia would be an ideal investment account to save for all eventualities.
By Staff Reporter