Nowadays, many people are becoming first-time parents only at an older age, some even in their 40s, for many reasons such as choosing to establish a career first.

Prioritizing the “when” for starting a family is influenced by many factors, and the decision is ultimately your own despite how others may try to influence you.

Let’s explore how becoming a parent when you are older has financial consequences.

1. More time on building your career

You can use your 20s and early 30s to concentrate on building your career and increase your earning power. This translates to more savings and investments.

When the time comes to start a family, the financial aspect will be less likely of an issue compared with younger couples.

It’s extra pressure if you are taking on a new baby while also looking at establishing your career. As a new parent, your child will likely always be on your mind.

Will you be able to balance climbing the corporate ladder with being a diligent parent?

2. Setting up a “Baby Fund”

Raising children is not cheap. If you plan for a baby, say in five years’ time, use that period to save money for the baby. How much to save?

There is no one-size-fits-all answer. But, your savings should at least cover expenses from pregnancy to the baby’s one-year-old birthday.

Having a “baby fund” readied can ensure a stress-free pregnancy, money-wise.

3. Medical cost

A high-risk pregnancy needs extra treatment and specialized care from trained providers to help with a healthy pregnancy.

A woman’s age is a risk factor for high-risk pregnancies. Adolescents and women over the age of 35 have a higher risk of pregnancy complications.

Fertility peaks when women are in their 20s. Then it starts to decline. Conceiving will be a struggle as women age.

4. The need for a bigger home

The apartment you are staying in now may be too small to include your baby. It will need renovation if you want to add a room. Or, look for a new bigger house.

That means carrying a debt for the next 20 years. Options for bank loans and your bargaining power become limited if you are above a certain age.

It’s challenging to build a nest egg for retirement when you have a big loan to service and childcare cost to take care of.

5. Retirement fund

To give birth at an older age (35 and over) can affect your retirement savings because childcare costs are the priority.

Raising a child is not cheap, and it gets more expensive as the child grows. Further, you would probably have a financially dependent teenager near your retirement. Playing catch up will be tough as retirement nears.

6. Taking care of both children and ageing parents

Many people with young children also have to take care of their own ageing parents. These people are called the “sandwich generation”.

Both generations rely on you for financial support. This can affect your financial well-being drastically.

Talk to your parents on their finances. Understand their basic needs and financial capability. Work out a budget and plan with your financial adviser to meet your needs, the needs of your parents, and the needs of your children.

7. Education fund

All parents want to ensure their children get a proper education, but the cost is not cheap. Plan for it with your spouse. Once you have a baby, you must plan for an education fund.

Planning must start at the earliest. You don’t have many more years left to save money until you retire.

8. Buy insurance

Insurance costs more the older you are, regardless of the coverage amount. The longer you wait to get coverage, the higher the eventual costs.

If you have dependents such as children, a spouse or ageing parents, do get a life insurance policy.

Buy insurance for your pregnancy to cover prenatal costs and your unborn baby. Coverage includes:

• Child protection before and after birth
• Maternal protection during pregnancy (congenital conditions, including neonatal jaundice)
• Beyond health insurance (pregnancy and newborn)
• critical illness and accident.

9. Create a new family budget

You can have a happy family life and still protect your financial future with some careful planning and budgeting.

Conclusion

Don’t let numbers or charts determine your life. Having a baby and starting a family is a personal choice. You can’t depend solely on Ringgit and sen as the measuring stick to decide for you.

Plan for it and you will be all right. This will be one of life’s most exhilarating periods. You’ll be anxious, scared, restless and uncomfortable. Just bring it on and embrace it.

This article first appeared in MyPF. Follow MyPF to simplify and grow your personal finances on Facebook and Instagram.