There are few sources of joy as powerful as having kids. Starting and raising a family brings a pride, joy, and fulfillment that few other aspects of life can offer. But having kids is a major decision, as it impacts every single aspect of your life. Having kids is expensive, and many young parents don’t truly understand the cost until after they have started having children. Here are a few things to understand the financial aspects of having children, whether you’re a new parent or considering becoming one!
How to Prepare Financially
There are a lot of financial costs that come with having children, and this means that there is a lot of preparation that needs to happen. If you and your partner want to have children, and know this, the earlier you can start saving the better. You should start keeping some money in a savings account that can be spent readily for things like doctors’ visits, nursery costs, toys, and whatever else you need as soon as your baby is born. You should also start an investment account to start saving for your child’s expenses. This includes things like college savings, so plan long term.
While the expenses of a baby might seem obvious, you don’t just have to save for the immediate expenses, but should think about the long term expenses as well. If you are considering sending your child to a private school, that will cost money. Sports and extracurriculars cost money. Teenagers will probably need braces, which can vary in cost depending on many factors. Not to mention the basic factors of food, clothing, and utilities increases that come from having another dependent for eighteen years. Make sure you are prepared for all of this, and consider your projected income.
How Much Do You Need Saved?
Well, the basic idea is that you should save as much as you possibly can. By the age of 30, you should have saved and invested at least one full year’s salary. By some estimates, raising a child through the age of 17 costs over $200,000, and that number only keeps rising with every passing year. The best way to do this is to get in the habit of saving/investing some of your money every month, whether that number is small or large, so that you get in the habit. This will help you continue to save more as your income grows.
Raising and having children is expensive. And the costs can sometimes be overwhelming if you haven’t planned. So, start planning now and thinking about your family’s future, as it will pay dividends in the long run!
Read this next: How to Encourage Good Dental Hygiene for Your Children
Interested in Publishing on The Parenting IDEA?
Send your query to the Publisher today!