Dubai: Childcare expenses on infants, toddlers and pre-schoolers can be quite high in the UAE, if not planned carefully. Dubai-based Indian expat Shipra Saxena, a working mother of two children Aadya (6) and Aarya (2) said budgeting is key to account for childcare related expenditures, just like any other household expenses.
“It’s very important to differentiate between needs and wants when it comes to childcare related expenses,” she stressed. There could be an urge among parents to overspend on things like clothes, shoes, toys etc. for children but it is good to be prudent, because expenses can easily spiral.
Saxena and her spouse Abhinav Purohit maintain an excel sheet that they created even before their first child was born.
“The excel sheet is very comprehensive and helped us to budget for all expenses in a phased manner based on what we needed prior to childbirth, in the hospital and post the baby’s arrival. We also took into account probable gifts from family and friends.
Checking if your child likes it before buying
“For example, we didn’t buy a bouncy chair that can cost anywhere between Dh200 and Dh700. We wanted to first see if Aadya our first born even likes it. So, we borrowed it from a friend and our child didn’t take to the bouncy chair. That’s how we tried to avoid buying anything that was optional.”
When asked about their approach towards non-negotiable expenses, Saxena said, “At different stages, children have different needs. Milk, diapers, clothes, socks, blankets, mittens are non-negotiable for new-borns. Here too we created a detailed list based on our choices. I chose to breastfeed my children up to a certain point, so I bought only one set of feeding bottles.” Based on choice, the price of this item ranges between Dh30 and Dh165.
“Although I had consciously taken a break from work during the birth of my first child, I knew eventually I’d go back to work. So, I had bought a good quality breast pump for Dh1,000. This came in handy when my second daughter was born, and I had to go back to work after a short maternity leave. A few such expenses were non-negotiable.”
What are the other negotiable expenses?
To begin with, everyone who has given birth to a child in the UAE will agree on the importance of having a decent maternity insurance coverage. Saxena had a comprehensive insurance cover for maternity, so they didn’t have to pay anything out of their pocket even as both their daughters were born premature and had to spend time at the neonatal intensive care unit (NICU).
“In our case, maternity was covered by insurance. But for those who don’t have a comprehensive insurance coverage, it’s advisable to buy a maternity package,” Saxena suggested. The premium for such packages tends to be high starting at Dh18,000 and can go up to over Dh25,000. In case of an active pregnancy, the insurance company accounts for the cost of delivery and complications, if any.
Moving on to food, an area where spend patterns differ based on preferences. After babies transition to solid food, some parents prefer organic options, others opt for normal home-cooked meals, while some others might stick with pureed food.
“We started feeding solid food to both our daughters from the age of six months. We followed a baby-led weaning process letting them explore boiled and steamed food stuff on their own as opposed to feeding them pureed food. We also chose to feed them home-cooked meals, not much different from what we ate at home and therein we didn’t allocate any extra budget for their food, except for milk.
“Having said that, we consciously avoided adding salt, sugar and honey in their food up to 12 months. In addition, we didn’t buy everything organic for them, opting for locally produced seasonal fruits and vegetables. But we decided to buy only organic in case of packaged foodstuff such as pasta and cereals, spending double the amount compared to normal variants.”
When asked about price difference between organic and non-organic foods, Saxena explained, “Airlifted organic foods are sometimes even three-four times more expensive than the normal varieties.”
Another non-negotiable childcare expense is diapers. A pack of disposable diapers (136 in this case) for new-borns costs roughly Dh100, whereas a pack of reusable cloth diapers (usually 2-3 in a pack) costs Dh150 and even less around Dh80-100 if it’s pre-loved. So, the price difference based on the choice is huge. Saxena opted for reusable and washable cloth diapers. “We always wanted to opt for eco-friendly options wherever possible. By selecting reusable and often pre-loved cloth diapers, we have also saved thousands of dirhams between new-born and potty-trained phases of our elder daughter.”
Tip to select the right cloth diaper: After a lot of research, Saxena rented a test kit to understand the styles and fits before buying the first set of cloth diapers for her elder daughter. The “clean, hygienic and well-packed” test kit came with an instruction manual and included reusable cloth diapers of different styles, sizes and patterns that helped Saxena understand what the new-born would need at night versus daytime and at home versus while going out. However, it is a matter of preference for parents to opt for pre-loved cloth diaper or not.
Opting for pre-loved items – it pays to learn to love them!
Saxena strongly believes in mindful spending. “Overspending and overconsumption are real problems, especially in this part of the world, and as much as possible we are keen to play our part to not add to it.” Even while shopping for their children, Saxena and Purohit have researched and consciously chosen pre-loved items (listed below).
Infants, toddlers and pre-schoolers outgrow things like clothes and shoes quickly. They are also seen to get bored of playing with the same toys or reading the same books. “This is one of the reasons we have consciously chosen pre-loved goods. We’ve bought pre-loved clothes in good condition paying 80 per cent less than the original price that both my daughters have worn therein extending the lifespan further. However, as they grow older, they tend to develop their own preferences so now we wait for sales and discounts when buying new clothes and shoes for them.”
Tip to buy in bulk: Along with a group of friends having children of similar age, Saxena orders soft cotton clothes online from India and in bulk at a much lower cost compared to the UAE, and they split the courier charges. For example, she spent INR800 (Dh40) to buy a set of breathable cotton nightwear from India, something of similar quality would easily cost Dh90 in the UAE.
“Our elder daughter loves to read. While we allocate a monthly amount of Dh300 to purchase books for her, we always look for pre-loved options and books on sale. This helps to purchase more for less. While we have bought pre-loved books for Dh10-20, we also buy full-priced books if she really wants to read it. We also buy books from India that cost lesser and it also helps our children to get introduced to Indian authors. Overall, book is an area that we don’t curtail on. We also encourage book exchanges between close friends, so they are able to read more while understanding the concept of sharing,” she added.
The family follows a similar approach for toys, but Saxena pointed out something interesting. “Since our second child mostly uses ‘hand me down’ items, we consciously allocate Dh50-60 to buy her toys every month. This is besides whatever toys she has inherited from her sibling. We feel strongly about not letting one feel more entitled than the other. Thankfully, if anything, we’ve seen them bonding more by sharing their stuff.”
More expenses to account for
Along with all the above expenses, there are a few additional components that require careful planning. Early years education, extracurricular activities and caregivers are among the most critical needs. “These are some of the most expensive aspects of child rearing,” Saxena admitted.
“Since I chose to be a stay-at-home mother until my elder daughter was 2.5 years old, we consciously home schooled her and didn’t need a full-time caregiver then. Plus, we have a strong family support structure. But when she started nursery, we had to pay an annual fee of Dh36,000. Then as she started her Foundation Stage in a British curriculum school, the annual tuition fee increased to Dh44,000. Since this is an expense that will keep increasing, we had consciously factored it into our budget even before she was born, because education is an area that should not be compromised on as far as possible.
“In addition, we always encourage our children to pursue extracurricular activities, which aren’t inexpensive either. We easily spend over Dh300 every month on extracurricular activities for our elder daughter alone. This is also something that we consciously plan for since such activities will only increase as they grow up.”
Tip to save on school registration fee: Before children start their early years education, parents have to do numerous school tours to select the best option based on educational and emotional requirements and the economic situation. While the school tours are for free, a registration fee of Dh500 applies for every application, unless it’s a not-for-profit educational institute. Saxena and her spouse had consciously made a list of three schools for application, two of which were not-for-profit – driven by choice and not monetary reasons. However, by doing this they saved Dh1,000. And their elder daughter ended up going to the school where they had paid a registration fee.
Finally, for working parents there is one more expense to factor in, the cost of hiring a caregiver.
“We pay roughly Dh3,000 per month to our caregiver who also doubles up as a home keeper.” Agency-led hiring is expensive. The monthly service charges to hire a live-in nanny from Tadbeer ranges between Dh2,300 and Dh4,900 plus 5 per cent VAT, depending upon the candidate’s experience and qualification.
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