So both you and your partner are primed and ready to have a kid. Being emotionally, mentally and physically prepared to take on the challenges parents face in bringing up a child is great. After all, every kid deserves to have a healthy, happy and loving family. However, he is also entitled to a financially stable home. Are your finances good enough to take on the strains brought about by child rearing?
Let the Numbers Speak
Look at the statistics regarding bringing up a child and the numbers can be very intimidating. Let’s see the estimated breakdown:
- In the US, standard vaginal delivery and infant care amount to an average of $30,000 for those who don’t have health insurances. For those who do, they get only to pay an average of $3,000 plus.
- Putting your child in infant care facilities in the US can cost to as much as $18,000.
- Meanwhile, the average cost you have to pay when you wish to put your child in a daycare facility can go up to as much as $12,000.
And the abovementioned estimates only account for some of the significant costs you need to cover when you have a kid to take care of. There are other things your child requires that you have to provide as well — clothes [including a lot of diapers!], gears, food, and – when he reaches the appropriate age for school – education.
All in all, parents are expected to fork over $245,340 at the very least for one kid until he reaches 18, and that amount doesn’t even put into account his college tuition fees!
Don’t let these numbers discourage you from starting a family, though. Because if you do and put off having a baby until both you and your partner feel you’re financially ready to take on the responsibilities, there’s a great chance you’ll eventually reach a point when you end up not having any kids at all.
Upcoming and Parent Wannabes, Financial Planning is the Key!
One of New York’s top financial advisors gives these doable financial tips to manage your finances when you plan to have a baby or already have one along the way.
Plan ahead of time and make the necessary changes. If you’re thinking about making a family addition then, both you and your partner should be ready to make the changes you feel you need to do to augment your finances. These changes don’t have to be drastic. For example, cutting on your wine consumption means you get to save what’s supposed to be money for one or two bottles.
Revisit your goals and know what to prioritize. You have to put in mind that the goals you might have had when you got married or started living together will not be the same as the ones you’ll be prioritizing once you already have a baby. Learn to be flexible with your priorities.
Make up a budget list in advance. Your baby’s needs are an addition to your living expenses and a hefty one at that. Making a budget in advance, listing about the possible costs you’ll incur pre-conception and post-delivery and inventorying the things you, other family members or friends have that can be used for your baby dramatically helps to determine how much you need and how much you need to allocate for the new addition to your family.