Not sure whether to get the Baby Toof Helper or the Little Chew toy for your teething baby? If you’re a Millennial parent, you’re likely to google online for reviews or broadcast your dilemma on the WhatsApp group chat with other mums.
Born between 1980s and 2000s, Millennials — some of them are parents now — grew up having instant access to knowledge in this age of technology. In contrast, their Generation X or Baby Boomer parents were more likely to rely on traditional media, such as advertising, in their decision to purchase a teething toy1.
The different ways in which these new mums and dads approach parenthood affects their spending decisions. Here’s why modern parenthood seems to cost much more and how Millennials who are parents can still secure a financially comfortable future for their bigger family.
This high-achieving attitude that modern parents adopt on their children’s behalf does not come cheap: a 14-week term of enrichment classes to prepare them for primary school can cost up to S$3,0004.
"As our standard of living increases, so do our costs and expectations,” says T.L. Lim, 31 and the mother of a three year old.5 “Children now are sent to an assortment of enrichment programmes in and out of school like music, sports and academic classes. It’s great exposure for the kids, but it also stems from an unhealthy ‘don’t lose out’ attitude that many parents feel pressurised about these days.”
National statistics reflect the increased cost of living as well as the cost of this additional pressure. The average monthly household expenditure in Singapore went up from S$3,352 in 2002/03 to S$4,724 in 2012/13.6 Out of this household budget, educational services accounted for 5.1% of spending in 2002/03, but 5.4% in 2012/13, totalling up to a difference of an extra S$115 a month.7
"When everybody posts the highlights of their family life, it creates a sense of a perfect world that everyone else will try to match up to, even if the post isn’t the full reality,” observes Lim. . Behind every post of a kid’s award-winning drawing, may be a pair of parents spending time and money on the child’s art classes. Millennial parents may even end up spending more on activities that go beyond the norm — from mixed martial arts to sewing — to encourage the learning of other skills, a trend Channel NewsAsia picked up on late last year8.
Instead, focus on bonding and spending time with your little ones through fun activities with the family that do not require much spending. Even daily walks to explore new environments can nurture in them a sense of curiosity and willingness to learn11.Playing certain types of games can also build their self-confidence and teach life lessons about patience, success and failure12.
In addition, it’s important to note that preparing the ground for your children’s achievements does not necessarily have to stretch the family’s finances. If you and your partner intend to have a child, plan ahead for his or her future, consider taking up a plan that reinvests your savings a plan that re-invests your savings to ensure that future generations are well taken care of. As your children grow older, include them in family discussions on money matters — after all, some lessons go beyond the classroom.
2 “Responsible parenting now involves securing the child with a comfortable head-start to stake his or her place in the much-coveted elite schools. It is not uncommon to hear of toddlers attending pre-school enrichment classes to prepare them for kindergarten.” From: http://lkyspp.nus.edu.sg/ips/wp-content/uploads/sites/2/2013/06/Conference-Proceeding_Paulin-Tay-Straughan.pdf
5Interview with T.L. Lim