Most people will have dreams of settling down one day and starting a family. Indeed, this might be something you see in the near future. You and your partner have been discussing the prospect of having a baby, and you’re both keen to go ahead with things.
However, it is really important that you think about the financial impact of having children. How will your personal finances be affected by a new human being in your family? Here are a few key things to take into account:
You’ve Got Multiple Medical Expenses to Pay For
Having a baby is not cheap at all. The cost of birth can range from $5,000 to $11,000 depending on the hospital you go to and the type of birth you have. That’s a pretty generous estimate too – it can be almost double that in some states for some births. So, you have to prepare for this and ensure that you know how much money is spent on medical checkups, scans, and delivering the baby.
Your Monthly Expenses Will Increase
It sounds obvious, but a lot of parents don’t realize how much their expenses will increase when they have a child. This is why parents preparing financially for the birth of their child will find it easier to cope than those that don’t. The ones that prepare will know that they need to adjust their budget and make room for the extra expenses. This includes food for the baby, diapers, and other essential things.
A good idea is to think about what you’ll need to buy when you have a baby to look after. Create a few mock shopping lists and see what they come to. You might discover that you’re not in a good place financially to have a child just yet. That’s okay, work on saving money or finding ways to make more money until you are ready.
Your Child Will Depend on You for Around 18 Years
Your child will depend on you to look after them until they’re 18 and go to college. Hopefully, your child will get a job when they’re a bit younger, meaning they can pay for their own clothes and other extra things. But, as a parent, you still have to put food on the table for them every single day. So, the monthly expense increase isn’t just for when they’re a baby – it happens until they leave the house.
Then, consider that you should try to provide for your child as they grow up. Many parents start savings funds for their kids, meaning you have to put money away for them.
Ultimately, having a baby will change your finances forever. This isn’t meant to discourage you from having kids. After all, everyone has them and most families are able to cope. The focus of today’s post is to prepare you for what lies ahead. You are now aware of the financial impact of having a kid, so you can start adjusting your budget and getting ready to have a baby. As mentioned before, you may have to wait a few more years before you can even afford to have a child.