Are you thinking about having children? Or maybe you are one of those who already have a baby and you are realizing that the cost of having one is much more than you expected.
There are some pretty shocking numbers when it comes to how much money is needed to raise a child.
We are talking about a period from becoming pregnant until your kid is 17 years old (no college fees involved)!
The average cost of raising a child is around $168.000. Isn’t that surprisingly high?
We are about to explain why it is and how you can save money when it comes to raising children.
Why Is Raising A Child So Expensive?
There are several factors that play into why raising a child is so expensive.
Let’s think about it like this: your child is an additional member of your family who not only needs everything you do but also gets things that we buy for them that are much more expensive than ours.
From diapers to clothes, children’s stuff is always much more expensive and you really need to calculate how much you can spend on certain items.
Another big factor is daycare. When mothers return to work, daycare is usually a must and an average family spends around $37,378 in daycare per child.
This is a huge number and you really have to wonder how to cut some costs if you and your partner are an average family.
How A Child’s Age Determines Costs
Each age requires something else and you may sometimes feel like you are running in circles with your expenses.
For example, when your baby is born, most of your money will go on diapers, formula, hygiene, and other basic needs.
When they become a toddler, you will have to pay for clothes, toys, daycare, baby food, etc.
As soon as your child starts going to school, you will have to pay for tuition, books, school clothes, their hobbies, etc.
When they become older, they will require more clothes, sports classes, gadgets, more food, transportation fees, etc.
And let’s not forget the food, hygiene, and doctor’s appointments for all these ages.
However, if you have more children, the average cost is much smaller.
This is called a cheaper-by-the-dozen effect. It means that you will save money if you have three or more children.
An average family spends 24% less per child if they have three or more kids. How?
They can share clothes, toys, books, and rooms. Also, older ones can babysit younger ones so it is definitely a plus.
How Can We Save For A Child?
Many of us may wonder – how can we save for our children?
The smartest thing to do is to start saving even before they are born. This is a great way to ensure you are ahead of your expenses and you will have a budget you can use when your baby arrives.
Also, as soon as you ask yourself this question, you may think about how much you should put away for this fund.
The answer may vary depending on your salary, preferences, what you want to cover with it, etc.
If you are an average family, even $200 a month can help in the long run.
It is great to have a plan that you will make with your partner. This way, both of you will know how much you can spend on everything else and how much you should save for your child.
Also, there are other wonderfully effective methods that can be implemented once your child is born.
First, you can look into babysitters near you or ask for help from your family members if you cannot pay for daycare.
Family members can safely take care of your child while you are working.
Another great way to save money on daycare is by becoming a stay-at-home mom. It may sound contradictory, but you would be surprised how much money you will save by staying at home, cooking homemade meals, and not spending money on gas to work.
Also, you can work from home if you need an additional income.
When it comes to food, it is advisable to look for coupons. This way, you will be able to buy food at discounts and save a lot of money yearly.
This is great for those who have babies and need to constantly buy formula.
Another big expense may be clothes. If you want to save money, you can try thrifting, or accepting second-hand clothes from your family or friends.
Even though you may struggle for a while if your income is not the highest, you will surely learn how to manage your money and live a fulfilled life.
It is all very optional and there are many other ways to save money. If you are determined and organized, you will definitely learn how to incorporate all these things and enjoy your parenthood.