It’s no secret that kids are expensive. If you’re not already prepared for that before you become a parent, you’re in for a big shock. But even knowing that it’s going to cost you a lot of money to raise a family doesn’t fully prepare you. There are a lot of expenses that you’re probably expecting like paying for clothes and diapers and buying food and toys etc. but that’s only the tip of the iceberg. There is an endless list of ways that kids can cost you money and some of them will probably shock you. If you’re not prepared for it, you might end up in a bit of financial trouble so make sure you consider these unexpected costs of parenthood when you’re sorting out your budget.
Loss Of Earnings
This isn’t something that people forget completely but it’s something that people often underestimate. You already know that one of you is going to need to stay at home and look after the baby and that means not working. You’ll be entitled to some maternity pay but what if you decide to continue to stay at home after it’s run out? If you lose one person’s income from the household at the same time all of your expenses suddenly shoot up, you can be in a very tricky situation. That’s why it’s essential that you save up plenty of money while you are still working and work out a new budget that takes the loss of earnings into account. When you eventually do decide to re-enter the workforce, you can start to take the pressure off again and increase your budget.
Again, most parents know that they need to childproof the house but they massively underestimate just how many dangers there are to deal with and how much that can end up costing. Staying on top of child safety in the home is a big job that extends further than stairgates and plug socket covers. You need to make sure that you’ve got childproofing locks on all of the cupboards in the kitchen and the bathroom where there might be dangerous chemicals. All of the sharp corners on the furniture need to be covered too. All of that childproofing stuff can get pretty expensive and you can’t afford to skip out on it if you want to make the place safe for your kids. To do the whole house, you could be looking at around $200.
All new parents are prepared for the out of control cost of sending their kids to college and if you’re sensible, you’ll start saving now. But a lot of parents don’t realize just how much they’re spending on putting their kids through school before that. If you decide to send them to a private school that charges tuition, that’s going to cost you somewhere between $7000 and $13000 a year. But even if you send them to a school that doesn’t charge tuition, you’ll still be paying a lot for school supplies. The average parent spends $500 a year on stationary and books for their kids schooling. You’ve also got to consider the cost of after school activities as well. If your child joins a sports team, for example, you’ll have to cover the cost of uniforms and training sessions. When you add all of those costs together, you can soon end up spending a lot of money on
Now that you’ve got a family to think about, you need to plan for their care if something were to happen to you. You might not have worried about life insurance too much before you were a parent but it’s an essential now. Otherwise, your family will struggle financially if something happens to you. If you’re under 35 years old, you’ll pay around $20 a month for your life insurance but that price will only increase as you get older. It’ll also be more expensive if you’re a smoker or you’ve got any health conditions. In some cases, you could be paying upwards of $100 a month per person which is a lot of money to be spending each month.
It’s important that you and your partner get some time to yourselves now and again so you can recharge your batteries and maintain your relationship properly. But that means getting somebody to look after the kids and you don’t want to leave them with just anybody. You can get family and friends to help out but it’s not fair to keep asking them to babysit for you all of the time so you’re going to have to start paying for it at some point. If you want the most reliable babysitters, you’re best off going through an agency that can vouch for them and that sometimes means paying a bit more. The cost of babysitting is on the rise and the average hourly rate is somewhere around $15 so a single night out will quickly add up. That’s just the price for one child as well. If you’ve got more then expect to pay more per hour. The area that you live in has a big effect as well. People that live in metropolitan areas are likely to pay a higher price. Under certain circumstances, you might have to pay $25 an hour or more for a babysitter so that night out suddenly doubles in price.
Energy bills are one of your biggest outgoings and they’re likely to shoot up when you’ve got another person living in the house but a lot of people don’t realize it. The average family spends around $2000 a year on energy bills but if you lived in a smaller place with fewer people, you would be paying half that amount. This is another thing that you need to factor into your budget and you need to start being a little more conscious of how much energy you’re using.
It’s no secret that having kids is going to cost you a lot of money but you probably didn’t realize that you’d have to cover all of these costs as well.