Having a baby is expensive so you need to consider your finances carefully. Depending on where you live and choose to raise your child, you may need deeper pockets than other parents. One time expenses such as cribs and strollers pale in comparison to ongoing expenses such as diapers, clothes and formula.
It is necessary for couples to take a careful look at their finances before starting a family.
According to the International Federation of Health Plans, Americans pay the highest birthing costs in the world. The average price tag of conventional delivery at a U.S. hospital is $10,002. Add another $5,238 to that for a C-Section. In the Netherlands, the cost of a normal birth pales in comparison at $2,824 and dips to an even more modest $2,251 in Spain.
To help with the planning process, take a look at the most important financial considerations prospective parents need to make.
- What financial considerations should parents take into account when planning to have a child? The cost of raising a child varies considerably but its estimated that you need an estimated $225,000 to raise a child born in 2010 until they reach 18 years old. You should also take into account the potential loss of income when one parents quits their job so as to have a child. Your lives will change dramatically once you start to have children.
- What is the biggest mistake financially that prospective parents make? The biggest mistake prospective parents make is to not have enough income to support the family as it grows. Wages usually remain stagnant while the cost of living rises steadily.
You may be able to provide for basic needs; food,shelter and clothing right now but what happens when your child starts kindergarten? Have you figured out where the extra money for school will come from? If its not possible to improve your financial situation but you already have a baby on the way, is there a social service that can assist until your financial situation improves? Many parents also purchase unnecessary items early on. There are hundreds if not thousands of novelty items that aren’t necessary for your baby. Stock up on diapers and start saving for school instead.
Children today are more expensive to raise, but have better opportunities than their parents had, regardless of the family finances.
How did you plan for your family? What were your main concerns?
First published at wallethub.com