Having two children can definitely be more exciting. But, if you and your spouse are planning to have a second child, don't forget to prepare your budget well. Because there are big expenses that will arise as family members increase.
Having a Second Child, What Big Expenses Do You Need to Prepare for?
You certainly already have an idea of how much it costs to raise a child, because of the experience of having your first child. Apart from the same expenses as for your first child, start to prepare money for unexpected big expenses when you have your second child.
1. Housing expenses
With having a second child, there are parts of the house that may need to be renovated. If previously the house only had two bedrooms for you and your partner and first child, now the second child also needs their own bedroom. You may not need to renovate your house now. However, you can start preparing funds because the cost of renovating a house to add a bedroom is quite large.
2. Emergency funds for a family with two kids
Having a second child means more saving for family emergency funds. If previously the emergency funds only covered three people, now it has to cover four people.
3. Education costs for two children
According to data from the Central Statistics Agency (BPS), school tuition fees increase every year by an average of 10 to 15 percent. Not only that, education costs are also experiencing inflation (reference: Kompas).
Therefore, be prepared to save money from now on. Not just for one child, but two children.
4. Daily or regular expenses
As family members increase, daily expenses will automatically increase. Take into account food and transportation costs, household needs, electricity and water consumption, and much more.
5. Sneaky expenses
Some expenses are often forgotten or not taken into account when having a second child. For example, family holidays and entertainment. Entrance tickets to tourist attractions, plane or train tickets, cinema tickets, all require an additional one when you have a second child.
Prepare Budget for Your Second Child's Needs Using Jago Pockets so You Can Have Multiple Accounts
Isn't it quite a lot of expenses to have a second child that you have to prepare the budget for from now on?
To make your finances and savings more manageable, use the Jago Pockets. By creating a new Jago Pocket in the Jago application, you open a new Jago Bank account. By having multiple accounts, it will be easier to manage your family's budget the way you want.
1. Create Saving Pockets, Locked Pockets or Spending Pockets the way you want
Log in to the Jago application and choose the type of Pocket you want to create according to your needs. With the large number of Pockets that can be created, it becomes easier and more practical for you to separate the budget for your second child's needs from your first child's needs and other family needs.
For short-term needs, the best Pocket choices are Saving Pockets, Spending Pockets or Locked Pockets. A Locked Pocket is actually a Saving Pocket that is locked. Locked Pocket is suitable for those of you who are often tempted to use your savings for shopping or other impulsive behavior.
2. For long-term financial goals (Moneyfesting) and family emergency funds, save money in the Jago Term Deposit
Renovating your house because you want to build a room for your second child could be a financial goal that you plan from now on. Especially if your second child will only have their own room after reaching a certain age. For example, when your child are little, they can still sleep in the same room as their older sibling.
However, you and your partner can prepare the funds now so that when the time comes, the funds are ready.
For financial goals that will not be achieved in the near future, save the funds in a Jago Term Deposit. Choose the savings period. There is also an auto-renewal (ARO) option available so you don't have to worry about extending your deposit when it matures. Apart from that, the Jago Term Deposit interest is competitive so it can be used as extra budget for your financial goals.
You can also use the Jago Term Deposit as a place to save your family's emergency funds. Withdraw your deposit whenever needed without worrying about fines or penalties. The Jago Term Deposit withdrawal process is fast and hassle-free, and can be done through the Jago application.
So, if you are thinking of having a second child, you can start preparing the budget from now on. Indeed, having two children is not an easy thing. But, by starting to prepare well in advance, everything will become easier and more manageable later.
