For many Filipinos, having a baby is one of life’s happiest milestones—but it’s also one of the most financially overwhelming. Hospital bills, baby supplies, and the sudden shift in household income can throw even the most stable budget off track.
According to Janice Sabitsana, a Registered Financial Planner (RFP), the key is preparation. In an interview with Financial Adviser PH, she explained:
“A budget gives you a snapshot of your finances today, but the real goal is preparing for how your spending will change tomorrow. A baby doesn’t just add joy—it also changes how money flows in and out of your household.”
Here’s how Sabitsana says new parents can reduce the cost of having a baby in the Philippines.
Start With the Numbers You Have Today
The first step, Sabitsana says, is to review your current income and expenses. Many couples underestimate just how much their lifestyle will shift when a child comes into the picture.
“If you’re in a dual-income household and one parent plans to stay home after maternity leave, practice living on one income now,” she advised. “This way, you get to see what adjustments you need to make—and you can use the other income to build savings before the baby arrives.”
She also recommends cutting unnecessary expenses and clearing off debts early. “The last thing you want is to juggle loan payments while paying for diapers and formula,” Sabitsana added.
Build a Baby Fund Early
Once you know where you stand, set up a dedicated baby fund. Sabitsana suggests treating it like a sinking fund—small amounts regularly saved until you reach your target.
“For example, if you plan to save ₱50,000 and you only have five months left before your due date, you’ll need to set aside ₱10,000 per month or ₱5,000 per pay period,” she explained.
To make savings grow, she encourages parents to use high-yield digital banks. “Even an extra two to three percent interest can go a long way when you’re building funds in a short period of time,” she said.
Plan for the Unexpected
Babies bring joy, but also surprises. Medical complications, job changes, or even unplanned expenses can put pressure on any family. That’s why Sabitsana stresses the importance of an emergency fund.
“Set aside at least three to six months’ worth of your monthly income,” she advised. “It’s your safety net so you don’t end up borrowing money at the worst possible time.”
She adds that this fund should be separate from your baby fund. “The baby fund is for expected costs. The emergency fund is for the curveballs.”
Don’t Forget to Check Your Benefits
Beyond savings, many parents miss out on benefits that can significantly cut costs.
“Check your PhilHealth coverage, your HMO or health card, and your SSS maternity benefits,” Sabitsana said. “The SSS maternity benefit alone can give up to ₱70,000 if your contributions are updated. That’s money you shouldn’t leave on the table.”
She also points to government programs like the Malasakit Centers for indigent families, which consolidate medical assistance from multiple agencies. “It’s about knowing what you’re entitled to and making the system work for you,” she said.
The Bigger Picture
For Sabitsana, preparing for a baby isn’t just about cutting costs—it’s about protecting your family’s financial health long term.
“Every peso you save ahead of time is a peso you won’t scramble for later,” she told Financial Adviser PH. “Planning doesn’t remove the challenges of parenthood, but it does remove the financial stress that often comes with it.”
Final Takeaway
A baby changes everything—including your money habits. But with a clear budget, a dedicated baby fund, an emergency cushion, and an awareness of your benefits, Filipino parents can welcome their child with peace of mind.
As Sabitsana put it:
“Your baby deserves your focus and love—not your stress about bills. The best gift you can give is financial readiness.”
