• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • HOME
  • RECOMMENDED BOOKS
  • FREE TOOLS
  • CONTACT US
  • ABOUT

The Fortunate Investor

Investing, Business & Personal Finance For Wealth Builders

  • Save Money
  • Invest Your Money
  • Get Out of Debt
  • Making Money Online
  • Family & Money
  • Taxes
  • Business
  • Retirement
    • Retirement Calculator
Home » The Cost of Raising a Child: Why You Should Start Saving

The Cost of Raising a Child: Why You Should Start Saving

December 15, 2019 By The Fortunate Investor | This article may contain affiliate links. For more information visit our Disclosure

Tweet
Share
Pin
Share
Share

What is the true cost of raising a child?

Learn how you can take action to plan for a secure future for your family.

Raising a child is one of the most rewarding and worthwhile things a family can do. There is no greater feeling than taking pride in your child, watching them grow and helping them develop into a well-rounded human being. Your children are a direct representation of you and your partner and you naturally want to give them the best possible upbringing you can.

Although raising children is a blessing, it also requires great dedication, hard work, and determination. As a parent, you must be vigilant and strive to provide for your child at all times both mentally and financially. Raising a child should be a natural process; however, some forethought should be given to the associated cost. You must fully understand what finances you will have to and how this will affect your overall budget and income. Start by using Personal Capital to track your expenses, income, savings and investments.

What costs considerations are associated with raising a child?

cost of raising a childThere are many different associated costs to consider when raising a child, some of which you may not have considered.  As an aspiring parent, you should make a list of these costs and figure out how you can afford them. Listed below are some of the main cost considerations:

Housing

This is one of the largest chunks of money you will spend. But, do you have a home big enough to comfortably accommodate a whole family? If not, do you need to change location? How much will this cost? How much will your rent of mortgage increase by a month? Do you need a deposit if you are buying a new house?

Food

Obviously, your ravenous child will need feeding! At first, you will need to buy baby food, and then as your child develops, move on to solids etc. This is all additional food on top of your usual weekly shop. How much extra will be required for your child’s food? Will you need to make extra shopping trips? This is extremely important, especially in the early stages as your child’s nutritional intake is vital to their well-being and growth etc.

Child Care

In this modern world, it is becoming more common for both parents to stay in full-time work. If this is the case, will you need to arrange child care? If you are lucky enough, you may have parents or grandparents who are willing to share to load, but not everyone can rely on this. How much will your child care cost? What about schooling and nursery? Child care can be tax deductible, use Turbo Tax to get all of your tax rebate.

Clothing

As much as you may like too, you cannot let your child run around unclothed! When your child is born, for the first year or so it will seem like you are continually buying new clothes (Children grow!). How much can you set aside for clothes? Do you have enough cash to cover that initial growth spurt?

How can you manage these costs?

Once you have a firm understanding of the associated costs, you must then be able to manage them. A sure-fire way to keep track of these costs is to create a budget and make regular notes on a calendar. A budget is a fantastic way to keep track of your expenses. This budget doesn’t have to be complex, but if you include the associated costs of raising a child, you should be able to keep tight control of your finances. A budget should include categories for individual costs i.e. child care, clothing together with an average monthly cost. Many people encounter problems if they freely spend their money and do not allocate sufficient funds for their monthly outgoings.

Should you invest in your child’s future now?

To cope with the costs of raising a child, it is a prudent idea to start investing now. If you are considering having a child, a savings account could be the perfect opportunity to put some money away that you can use when the happy moment arrives. Alternatively, you could open a child’s savings account and pay a regular amount into it that your child can access at a certain age for a college fund etc. The more you can save, the easier it will be to give your child the upbringing they deserve!

  • About
  • Latest Posts
The Fortunate Investor
The Fortunate Investor at FortunateInvestor.com
The Fortunate Investor is the finance half of the husband and wife duo behind this website. Michael's finance and investment advice is rooted in an MBA and 20 years experience as an entrepreneur, banker, and manager in the financial services industry.
Latest posts by The Fortunate Investor (see all)
  • Could Bankruptcy Be Your Way Out Of A Financial Mess? - January 19, 2021
  • Ways to Make Money Online - January 18, 2021
  • Micro Investing Apps: The Best Platform For 2021 - January 14, 2021

Primary Sidebar

Popular Articles

How to Avoid the 4 Biggest Business Risks

How to Avoid the 4 Biggest Business Risks

There are so many things that can go wrong when you run your own small business. You’re on a tight … Read More about How to Avoid the 4 Biggest Business Risks

Startup Tips To Help You Get Started

Startup Tips To Help You Get Started

Starting your own business can be daunting for any budding entrepreneur. It’s about having the … Read More about Startup Tips To Help You Get Started

What You Should Do If You Have An Accident At Work

What You Should Do If You Have An Accident At Work

Sustaining an injury can be a nightmare for many reasons, and it’s important that you know how to … Read More about What You Should Do If You Have An Accident At Work

Should You Save Or Get Credit Here’s The Answer

Should You Save Or Get Credit? Here’s The Answer

When it comes to your finances, you may find that you just don’t really know where to start with it. … Read More about Should You Save Or Get Credit? Here’s The Answer

6 Key Strategies To Enhance Success in Family-Owned Businesses

6 Key Strategies To Enhance Success in Family-Owned Businesses

Did you know that family-owned businesses generate most of the world's wealth? Take the United … Read More about 6 Key Strategies To Enhance Success in Family-Owned Businesses

Footer

TOPICS

SAVE MONEY
INVEST MONEY
REDUCE DEBT
MAKE MONEY
FAMILY & MONEY
TAXES
START A BUSINESS
RETIREMENT

THE FORTUNATE INVESTOR

ABOUT US
ADVERTISE
CONTACT US

The Fortunate Investor focuses on personal finance topics to build wealth. Topics include saving money, investing, managing debt, family and money, taxes, making money, college planning, starting a business, coupons and retirement.

SOCIAL MEDIA

FACEBOOK
TWITTER
PINTEREST
INSTAGRAM
YOUTUBE

Copyright © 2021 Fortunate Investor. All Rights Reserved. | Disclaimer & Disclosure | Privacy Policy | Terms of Service