For those who are expecting or have recently welcomed a baby, congratulations! This is such an exciting time, filled with unforgettable moments. As you begin this next chapter, one of the important things to consider is your finances and financial planning for the future.
We have listed a few budgeting considerations for new parents in Cayman. This is especially important for those who may have recently moved to the Cayman Islands, as some processes, such as health insurance, can differ from those in another country.
Budgeting for Newborn Expenses
- Create a detailed budget. Be sure to account for everything from immediate needs, such as diapers, baby formula, clothing, and health insurance, to ongoing monthly expenses like a nanny or daycare.
- Buy in bulk. During those first few months, you’ll go through a lot of diapers and wipes! Buying these essentials in bulk can help reduce costs. Cayman has several wholesale retailers, such as Cost.U.Less and Priced Right, where you can find good deals.
- Consider purchasing secondhand. Gently used items like cribs and strollers can save you money. The Cayman community is active on social media platforms, especially Facebook, where you can find groups and marketplace deals.
Health Insurance
- Organise your baby’s health insurance before birth. In Cayman, newborns are automatically covered under their mother’s policy for the first 30 days of life. However, if the mother is covered under her own mother’s policy, the new grandchild will need separate insurance arranged before birth; otherwise, the family may be liable for all medical costs.
- Understand the fees. There are two separate fees associated with a newborn: hospital fees and pediatrician fees. These are entirely distinct. If you choose to have your baby cared for by a government pediatrician, the pediatrician fees remain the same but are paid directly to the hospital.
Daycare
- Research daycare options early. It’s best to start exploring daycare facilities during pregnancy, as spaces can be limited. If you’re new to Cayman or unfamiliar with local educational institutions, the Office of Education Standards’ website is a great place to start. It features reports on early years education through high school, which can help guide your decision.
Preparing a College/University Fund
- Start a college/university fund. Setting up a savings account for your child’s education is a smart long-term investment. Additionally, explore the scholarships available in the Cayman Islands, both government and private, to familiarize yourself with the eligibility criteria and options for future educational support.
Community Resources
- Seek community support. In addition to local websites, there are active Facebook parenting groups in Cayman where you can find advice, share resources, join meetups for new parents, and discover potential savings on baby items.
These are just a few suggestions to help you get started with family financial planning. This list is not exhaustive, and we recommend sitting down with your family to have a comprehensive discussion about the points above, as well as long-term financial planning, such as life insurance and will and estate planning.
