{"id":4571,"date":"2023-05-01T18:49:11","date_gmt":"2023-05-01T10:49:11","guid":{"rendered":"https:\/\/spk.ppe.rhenish.org\/?p=4571"},"modified":"2023-08-03T17:13:09","modified_gmt":"2023-08-03T09:13:09","slug":"the-expenses-of-having-children-are-particularly-high-how-can-parents-manage-their-finances-effectively-for-themselves","status":"publish","type":"post","link":"https:\/\/spk.ppe.rhenish.org\/en\/the-expenses-of-having-children-are-particularly-high-how-can-parents-manage-their-finances-effectively-for-themselves\/","title":{"rendered":"<strong>The expenses of having children are particularly high. How can parents manage their finances effectively for themselves?<\/strong>"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"4571\" class=\"elementor elementor-4571\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5fce5c1 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5fce5c1\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-25fe085\" data-id=\"25fe085\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2938ff0 elementor-widget elementor-widget-image\" data-id=\"2938ff0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"580\" height=\"325\" src=\"https:\/\/spk.ppe.rhenish.org\/wp-content\/uploads\/2023\/06\/IMG_9010-768x430.jpg\" class=\"attachment-medium_large size-medium_large wp-image-4521\" alt=\"\" srcset=\"https:\/\/spk.ppe.rhenish.org\/wp-content\/uploads\/2023\/06\/IMG_9010-768x430.jpg 768w, https:\/\/spk.ppe.rhenish.org\/wp-content\/uploads\/2023\/06\/IMG_9010-300x168.jpg 300w, https:\/\/spk.ppe.rhenish.org\/wp-content\/uploads\/2023\/06\/IMG_9010-1024x573.jpg 1024w, https:\/\/spk.ppe.rhenish.org\/wp-content\/uploads\/2023\/06\/IMG_9010-1200x672.jpg 1200w, https:\/\/spk.ppe.rhenish.org\/wp-content\/uploads\/2023\/06\/IMG_9010.jpg 1290w\" sizes=\"(max-width: 580px) 100vw, 580px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ce599ed elementor-widget elementor-widget-text-editor\" data-id=\"ce599ed\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Source: Founder of Piggy Gaga Financial Education, Sang Chan.<\/span><\/p><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">Raising children is often described as &#8220;bit pricey,&#8221; meaning that expenses increase significantly. As parents, how can we manage our finances effectively? Many parents believe that their income level determines their quality of life. While income is certainly related to quality of life, there is something even more important. If every family handles it well, their quality of life can still be greatly improved, and that is how they manage their income.<\/span><\/p><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">Each parent can use a simple financial concept, known as the financial pyramid, to allocate their monthly income. The underlying principle of this financial pyramid explains how to divide and allocate every dollar earned to the appropriate areas, maximizing the value of each dollar. By following the construction and operation of this financial pyramid, the financial situation of every family can become increasingly healthy.<\/span><\/p><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">At the base of the pyramid, the first step is to allocate around 5% of the income to Mandatory Provident Fund (MPF). After setting aside funds for MPF, the next level is to allocate for our basic needs. Basic needs refer to our necessities such as clothing, food, housing, and transportation. As parents, this also includes the daily supplies for our children, such as formula milk and diapers. It may even include their educational expenses as they grow older.<\/span><\/p><p><span style=\"font-weight: 400;\">Approximately 50% of the total income should be allocated to cover basic needs, which is a reasonable level. After managing basic needs, we then have to consider taxes. The amount of taxes varies for each individual. In Hong Kong, approximately 5% of the income is usually manageable for taxes.<\/span><\/p><p>\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ca35e45 elementor-widget elementor-widget-image\" data-id=\"ca35e45\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"300\" height=\"157\" src=\"https:\/\/spk.ppe.rhenish.org\/wp-content\/uploads\/2023\/06\/IMG_9011-300x157.jpg\" class=\"attachment-medium size-medium wp-image-4523\" alt=\"\" srcset=\"https:\/\/spk.ppe.rhenish.org\/wp-content\/uploads\/2023\/06\/IMG_9011-300x157.jpg 300w, https:\/\/spk.ppe.rhenish.org\/wp-content\/uploads\/2023\/06\/IMG_9011-1024x536.jpg 1024w, https:\/\/spk.ppe.rhenish.org\/wp-content\/uploads\/2023\/06\/IMG_9011-768x402.jpg 768w, https:\/\/spk.ppe.rhenish.org\/wp-content\/uploads\/2023\/06\/IMG_9011-1200x628.jpg 1200w, https:\/\/spk.ppe.rhenish.org\/wp-content\/uploads\/2023\/06\/IMG_9011.jpg 1290w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-57fbecc elementor-widget elementor-widget-spacer\" data-id=\"57fbecc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9a200f7 elementor-widget elementor-widget-text-editor\" data-id=\"9a200f7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">After allocating for these three levels, how can we manage the remaining money to gradually improve our quality of life? The first part is allocating around 10% of our income to liquid cash. Another 10% can be allocated to asset protection, where the most important asset is ensuring our own and our family&#8217;s well-being<\/span><\/p><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">After arranging these two 10% allocations, we have approximately 20% of the income remaining. This 20% can be allocated to asset appreciation, allowing us to achieve some important life goals. Sometimes, parents may ask, &#8220;Do we need to be very wealthy as a family to engage in financial management? Can we manage our finances even if our income is just enough?\u201d<\/span><\/p><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">High-income families are like large houses, and they may have more things to take care of. They might have a storage room where all the miscellaneous items can be stored and the door closed. The whole house will then become tidy, and the overall management will be much simpler.<\/span><\/p><p><span style=\"font-weight: 400;\">But if our house is not that big, metaphorically representing our income, we can imagine a small house. If we take good care of it, it can still lead to a better quality of life. If our income is more abundant, of course, there will be more room for financial management. However, if our income is just enough, it becomes even more important to manage it well.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fb1c1cb elementor-widget elementor-widget-image\" data-id=\"fb1c1cb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/www.parentsdaily.com.hk\/\" target=\"_blank\">\n\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/spk.ppe.rhenish.org\/wp-content\/uploads\/elementor\/thumbs\/Powered-by-PD-psep46l7ol3rmky0s98abuijh1ye39mn70a0n14inc.png\" title=\"Powered-by-PD\" alt=\"Powered-by-PD\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1f6e096 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"1f6e096\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"\/\u5bb6\u9577\u5712\u5730\/\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">\u8fd4\u56de<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Raising children is often described as &#8220;bit pricey,&#8221; meaning that expenses increase significantly. As parents, how can we manage our finances effectively? Many parents believe that their income level determines their quality of life. While income is certainly related to quality of life, there is something even more important. <\/p>\n","protected":false},"author":2,"featured_media":4522,"comment_status":"open","ping_status":"closed","sticky":false,"template":"elementor_header_footer","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[40],"tags":[],"class_list":["post-4571","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-parents-zone"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The expenses of having children are particularly high. How can parents manage their finances effectively for themselves? - \u79ae\u8ce2\u6703\u65b0\u84b2\u5d17\u5e7c\u5152\u5712 San Po Kong Rhenish Nursery<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/spk.ppe.rhenish.org\/en\/the-expenses-of-having-children-are-particularly-high-how-can-parents-manage-their-finances-effectively-for-themselves\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The expenses of having children are particularly high. How can parents manage their finances effectively for themselves? - \u79ae\u8ce2\u6703\u65b0\u84b2\u5d17\u5e7c\u5152\u5712 San Po Kong Rhenish Nursery\" \/>\n<meta property=\"og:description\" content=\"Raising children is often described as &quot;bit pricey,&quot; meaning that expenses increase significantly. As parents, how can we manage our finances effectively? Many parents believe that their income level determines their quality of life. While income is certainly related to quality of life, there is something even more important.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/spk.ppe.rhenish.org\/en\/the-expenses-of-having-children-are-particularly-high-how-can-parents-manage-their-finances-effectively-for-themselves\/\" \/>\n<meta property=\"og:site_name\" content=\"\u79ae\u8ce2\u6703\u65b0\u84b2\u5d17\u5e7c\u5152\u5712 San Po Kong Rhenish Nursery\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-01T10:49:11+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-03T09:13:09+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/spk.ppe.rhenish.org\/wp-content\/uploads\/2023\/06\/IMG_9010.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1290\" \/>\n\t<meta property=\"og:image:height\" content=\"722\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"system\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"system\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/spk.ppe.rhenish.org\\\/en\\\/the-expenses-of-having-children-are-particularly-high-how-can-parents-manage-their-finances-effectively-for-themselves\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/spk.ppe.rhenish.org\\\/en\\\/the-expenses-of-having-children-are-particularly-high-how-can-parents-manage-their-finances-effectively-for-themselves\\\/\"},\"author\":{\"name\":\"system\",\"@id\":\"https:\\\/\\\/spk.ppe.rhenish.org\\\/#\\\/schema\\\/person\\\/dbc2bce02f7fa3bc194433d43d4c9628\"},\"headline\":\"The expenses of having children are particularly high. 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