There is likely no greater joy in the world than becoming a parent. Whether planned or unexpected, bringing a little person into the world comes with a lot of responsibility. While most of that responsibility falls under your ability to nurture, guide, and support your child, there is also an increased financial responsibility. From nursery equipment and clothing to childcare services and schooling, there is a lot you’ll need to afford.
On average, it can cost as much as $200,000 – $300,000 to raise a child from birth to the age of 18. Unless you’ve got a serious savings account, you’re going to need to allocate the funds to provide your child with what they need. Of course, this is not to stress you out. Keep in mind that this is the cost over the course of 18 years so you don’t need it all upfront. However, being aware of the costs can essentially help you to find ways to cut back while still giving your child everything they need.
Buy Used
Your children are constantly growing, evolving, and will eventually begin to wreak havoc on some things (like clothes, toys, and whatever else you purchase for them). You’ll find that while it might seem feasible at the time to purchase high quality products, that it is not always necessary. For example, purchasing a top of the line crib is pointless when most parents don’t utilize the crib and allow the kids to sleep with them. Just as it wouldn’t make sense to purchase designer clothing for a newborn when they’re going to outgrow it in a week.
Buying used can often save you a lot of money. There are online consignment shops that exclusively sell children’s clothing. You can shop here and get all the used apparel you’ll need to get your little one through the first few years of their life. This way when they outgrow it, you won’t be disappointed that you spent a ton of money on it.
Of course there are also platforms like yard sales, secondhand stores, online bidding sites, etc., that can be used to purchase anything from nursery furniture and clothing to smartphones and basketball shoes (oh yeah, once they hit their teens the price tag on their wish list goes up).
Save for Larger Expenses
Saving is ultimately the best way to afford more expensive things like college tuition. Instead of waiting until your child is a teenager, you can start saving towards their future the moment they’re born. There are savings accounts such as 529 college savings plans that allow you to put away tax free dollars towards your child’s education. By saving now, you’re not only ensuring you don’t have to fork over a ton of money at once, but you’re also gaining interest that can be used to reduce your out of pocket expenses.
Keep Your Receipts
The local and federal government understand the cost of raising a child and as such, they try to give us a bit of financial help. Make sure that you keep track of all receipts related to raising your child. From the cost of childcare to their medical expenses, this can all be written off during tax season to reduce your tax bracket and to potentially qualify you for tax credits.
Look for Free Options
Whether it’s childcare, dance, or summer camp, before you decide to make the purchase, check to see if there are any free options in the area. Again, the government tries to assist with the cost of raising a child. By offering free and low cost programs to kids, parents are able to save money over time. So if your child is interested in an extracurricular activity or you’re in need of a service provider like a childcare center, be sure to check government websites to ensure you can’t participate for free or at least at a lower rate.
Though it would be nice if raising a child was free, it requires a great deal of money. Whether you’re expecting a new baby, or seem to be having trouble managing the costs of raising your children there are ways around it. Buying used, looking for free alternatives and taking advantage of government programs is just the tip of the iceberg – but it’s a great place to start.
