As parents we know having/raising children isn’t easy, doesn’t come cheap and depending on which coast you reside in (and according to the U.S Department of Agriculture), the average family spends approximately $12,000 on a child’s first year and well over $200,000 by their eighteen birthday (that number of course goes up with each additional child).
With that said, there is no time like the present to jumpstart your family’s financial freedom/future. By not taking the time out to control key factors such as tax credits for children, education funds and flexible accounts many of us could end up wasting away valuable dollars which many of us may not have to spare.
Here’s what you can do to get started:
- First things first, put your assets in order and budget for any immediate needs
- Figure out an action plan to handle funding your retirement as well as an education fund for your child/children
- If you are having your first baby, make it a point to keep minimize the baby related spending (I know it’s easier said than done but you’ll be glad you did it in the long run). Getting caught up in the spending game will only hurt your pocket
So during this time keep in mind, just because you have financial goals and plans does not mean that you cannot splurge on things that are important to you. Just be prepared and budget for it.
Bottom line: having children is expensive, but with some planning, patience and clear goals anyone can raise a family and enjoy some form of financial bliss.