I’ve seemed to surpass that stage in life when it seems like everyone is getting engaged or married… because now, all of my friends are having kids. I was all aboard the Matrimony Train, but this adventure makes me hesitate just a bit – it’s obviously not something you just jump into. Some people forget that babies are not cheap, and since I’ve worked in Early Education for the past 8 years, I am not one of those people. CNN reported last summer that it’ll cost a middle-income family about $241,080 to raise a child over a period of 18 years (with about $12,000 of that racking up in the first year alone). What are we talking about here?
- Housing – your home, furnishings, and utilities
- Basic necessities – food, clothing, diapers
- Health care – medical care and dental expenses, prescriptions, medical supplies
- Education – child care, school supplies, tuition
- Miscellaneous items – things like toys and entertainment
While it might seem a bit daunting, remember that millions of other people are making their finances work for their family, and there are things you can do to prepare.
Save, save, and save some more! Many of the costs associated with raising children are spread out over the course of a lifetime, so this leaves plenty of time to plan your finances accordingly. It doesn’t hurt to put a little extra money away on top of what you’re already saving.
Fine-tune your budget. Prioritize your essential spending and cut back where you can. The “entertainment” and “miscellaneous” parts of budgets are usually the first to get trimmed – nights out at fancy restaurants will have to be reserved for special occasions.
Shop smart. A lot of people, especially first-time parents, feel like everything they purchase has to be brand new or top-of-the-line. While this is important in some instances (i.e. when your child’s safety is the top priority, like when buying a car seat, for instance), it’s not usually necessary. Consider making second-hand purchases when you can, or buy generic-brand items. In turn, you’ll have more money to put towards the items that ARE worth spending more for. *Don’t forget to shop around when making major purchases – compare rates and read reviews to make sure you’re getting the most bang for your buck!
How do you budget for your family? Feel free to share your tips with us!
