Many childless couples worry they can’t afford to have children. Looking at cost estimates in our current economy of $200,000 to $500,000 to raise one child for 17 years it is no surprise.
Certainly having a child is a huge expense, but so is buying a home or saving for your retirement. If you sincerely want children, don’t let cost hold you back. Instead, use smart money management and good budgeting to allow you to invest in your bundle of joy.
While most families don’t think ahead about money matters when they have kids, it is certainly beneficial to do so. Having kids is not necessarily a financial decision, but some pre-planning can make the financial impact of children less of a burden.
Even if you already have kids, you can benefit by planning for the future. Some common expenses to consider are:
1. Insurance. From birth onwards… the medical costs associated with children can be high. Having good health coverage in place can make a big difference.
2. Clothing and accessories. From diapers to bedding, kids need stuff. The best way to deal with this ever increasing load of supplies is to shop smart and buy secondhand.
3. Childcare or loss of income for stay-at-home parent. Taking care of your kids costs money. There are tons of options here, so it is good to lay them out and compare. The cheapest may not always be the best choice.
4. Food. Grocery bills will rise as your family increases. Taking the time to shop and cook smart can make a huge difference.
5. Education. Whether it is a private kindergarten or college, it is a smart investment in your child’s future to plan for quality education.
6. Misc. expenses. Trust me, these might sound small but they quickly add up – soccer teams, dance lessons, presents, movies, transportation, vacations, and much more.
Laying out a budget now and planning will help ease the financial pain of having kids and hopefully will allow you to sit back and enjoy them instead.
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