Those little bundles of joy carry a heftier bill than you might think…
One Of The Happiest Day Of My Life
For most parents this is the way they will describe the day their children are born. It’s a whole new chapter that changes everything, but rarely for the worse. One thing is for certain.
Raising kids isn’t cheap! But it is worth it.
Done right it can mean decades of growth and learning for everyone, through the good times and the bad.
It can also mean someone will be there to care for elderly parents one day and possibly some grandchildren to spoil.
Costs can add up!
Regardless of how wonderful we believe our kids are, naturally they bring new costs into the home. The average cost of delivery in Canada without insurance is about $6000 to $8000. For a c-section it would be a touch higher, around $10,000 to $12,000. Just those upfront costs without insurance can be a big hit.
But it’s the upbringing that really tips the scales.
Some of the latest numbers would guestimate from birth to 18 years of age one child can cost a family around $250,000. That is not including post-secondary education.
There are many things to consider when planning financially for kids:
- Consider insurance and see if your employers benefits cover any costs.
- Baby needs. This list could be endless. But think about clothing, high chairs, car seats, toys, hygiene products, strollers, cribs, swings, etc.
- Life insurance. You will want to explore options for life insurance to insure that your young one is cared for in the event of your death.
- Child care. If you live a busy life you might need a day home for your child and those can be costly. Look around your local area and also see if there is any government assistance for such costs.
- Emergency fund. The importance of this cannot be overstressed. It is absolutely essential that you have an emergency fund for your family if you are planning on having children around.
Some are thinking twice!
The rising cost of living but stagnant salaries over the past few decades have some people thinking again about having kids. It continues to get more expensive to live, so some people are delaying their plans of having kids by several years or deciding to not have kids altogether.
I say don’t be discouraged! This is just my opinion. Having kids is expensive but I believe that it is still worth it.
You never know when you will spawn the next NHL superstar who will take care of you once they make the big leagues.
Kind of joking, but there is a chance!
Even if the children don’t strike it rich, they will be able to help you out in some way when you are older and need assistance. Plus the fact that you wont be lonely. These things are the long-term investment of having children.
Besides, cost of living is within your power. There is things that you can do to make life a whole lot easier on yourself and your new family.
Combo income power
If you have a significant other that is going to be joining you on the children journey it can be a whole lot smoother financially. Having the power of dual income is huge for maintaining financial stability.
If you are crossing the threshold alone and are worried about finances, reach out to your family and friends and see if someone would be willing to rent you some space for cheap while you get through the early years and can get more established.
You can make the choice
By this I mean in way of “cost of living”. Raising kids and living doesn’t need to be as expensive as some people make it.
- Parents and a child can make it work with one bedroom. If you have three bedrooms, consider downsizing or renting out the other rooms for extra income.
- If you have more vehicles that you absolutely need to survive, get rid of the extra ones. This can open up a lot of extra money for more important things such as an emergency fund for your family once it has expanded.
- Sell all of your extra material possessions that you don’t use every day and tighten up that budget.
- If you don’t have a budget, make one!
You wont regret it
If you can make some strategic financial moves such as taking advantage of dual income, or downsizing your cost of living, it will be much easier on you and your loved ones. Chances are, you wouldn’t regret having kids! You can make it work, just plan out the financial part of it, and plan for the worst! This way if things go smoothly you wont be stressed by having your dollar stretched too thin.
But all in all these are some points about the cost of having kids. Just a few of the many things to consider though, keep up the research.
Good luck in your journey!