More than the cost, children increase the value of every day of their parent’s lives! Before they’re even born, they are bringing excitement to every waking moment. And let’s be honest, you’re going to need to get accustomed to “waking moments”!
Unfortunately, they have also started taking a bite out of your budget before they’ve even taken a breath. From sonograms to sound machines, missed sleep and missed work, and the eventual hospital stay when the happy day finally arrives, your little bundle of joy comes with a hefty price tag.
And the cost of raising a child has steadily increased at a rate of about 4% every year, with conservative estimates currently topping $284,570 by the age of 17, without factoring in college savings. At Dundee Bank, we don’t have any interest in fear mongering, and we will never mention a potential obstacle if we can’t also guide you around it!
When budgeting for a baby, much of the projected price comes from the cost of housing and feeding your little one, and the cost of raising each child after your first drops. You can thank hand-me-downs and shared bedrooms, as well as the value of buying in bulk for the decreased expenditure. Factor in braces, childcare (which accounts for between 12 and 22 percent of a family’s monthly budget), and transportation and it’s easy to start sweating the small stuff. Literally. Why are such tiny little outfits so expensive, and why do children outgrow them so quickly?
Having a child comes with countless unforeseen setbacks, challenges, and surprises. Let us help you plan for the financial responsibility of raising a family, so you can spend more time enjoying the time you have together!
While you’re visiting with your tax advisor this season, be sure to discuss a tax-deferred savings account, and whether your family could benefit from setting aside pre-tax funds for family expenses. If you have any questions, give Dundee Bank a buzz!