What Are the Overall Financial Costs of Adding Another Child to Your Family?
Thursday, June 8, 2017, 6:00 AM | Leave Comment
Raising a child is never easy, especially if you already have other little ones to care for.
Some things might be reusable or one-off expenses, but there are other things that you have to budget from week-to-week.
The cost of having a child keeps going up with inflation, and you can count on sudden expenses here and there that you didn’t budget for.
Here are just some of the costs of raising another child.
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Evaluate Your Income
The average yearly cost of raising a child is now about $15,000. Few households get by on a single income.
It starts with maternity leave, which you may not be paid for, depending on your company or state.
Caring for an infant is a full-time job you probably won’t trust anyone else to do. Even as the child grows, if both spouses are intent on working, it means paying for childcare services until infant is ready for school.
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Consider Age Differences
Some day care facilities will allow discounts for multiple children, and some won’t.
Think about the increased costs, or spending twice as much for diapers, even for a limited time.
With three children going to three different schools, that will impact your time and fuel costs.
You’ll likely want to start looking for a new vehicle, like those at Bay Ridge Nissan, which may be safer, roomier, and more reliable.
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Total Your Costs
Save your receipts and estimate your monthly expenses for your youngest child.
Don’t overlook groceries, clothing, toys, diapers, utility bills, and anything else that pops up.
If you have an additional child, you’ll have to double that expense. This is going to be a constant expenditure that will only go up as the child ages. If this threatens to put your budget behind in other areas, you better start looking for ways to save money.
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Adjust Insurance Coverage
Medical insurance for a small child is essential. With today’s chaotic background of repeal-and-replace promises, insurance provisions and premiums aren’t something you can count on.
In any case, these costs are gradually rising like everything else in the economy. The good news is that most insurers will charge you minimally for adding another child to an existing policy.
However, there will be additional co-payments for emergency treatment and other issues that affect your cash flow.
You and your partner are the only ones who can make the decision to have another child. You have to accept the financial burden and prioritize things like medical care and transportation.
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