When it comes to children and saving money, what do you do? What sacrifices are you willing to make for you children? And does the amount you spend on your children affect them? This is really a tricky area and the answers will be different for everyone. Here are a few areas that you may consider.
1) Daycare costs can be quite expensive. If both you and your spouse work, or if you are a single parent then this is a very real part of your budget. Daycare can be very expensive, depending on where you live and the quality of care that you expect. You should spend time shopping around and comparing different providers and costs. You may find an awesome in-home daycare provider at lower rates than the upscale daycare provider. Or you may find that the place that you feel most comfortable leaving your child is a little bit more expensive and you decide to trim the budget elsewhere. It is important that daycare costs really only affect your budget the first five years of your child’s life—so you may be able to sacrifice to spend more for that long.
2) Education is another area where the amount you spend may vary. It can start with finding the right preschool, and can carry on to private school. Even if you decide to go the public school route you may be paying extra for tutors, music lessons, and private coaching. This is an investment in your child’s future, but you should be able to manage these costs without breaking the bank. You may need to cut back the activities to one or two or forgo private school for now. If you plan on helping your children with higher education you may choose a state university over a private one.
3) There is a lot of stuff that you buy for your children over the years. Diapers, clothes, toys, video games and computers just to name a few. It is important to realize that you do have control over how much you spend on these items. If your teenager needs name brand clothing, you can agree to pay a certain amount, and then have her make up the difference. You can also determine how much you are willing to spend on the fun things. It is important to find a good balance for your children and your budget.
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