There are many sayings and catchphrases associated with children. People have been heard saying everything from “Children are the future” to “Raising a child today is just so expensive.”
Hospital bills, driving expenses, and college tuition are some of the big-ticket items for growing children. There are other costs, however — things like diapers and wipes, childcare, and even life insurance.
Where and how to buy life insurance for children and which daycare to enroll your child are all questions parents consider and reflect on. The good news is there are surefire ways to save a little money when raising those children.
Common Expenses and Raising Children
When a couple begins thinking about when to have children, they often worry most about the financial side of things. Raising children, even just one child, can get expensive rather quickly.
When discussing the cost of raising a child, it’s important to calculate those recurring costs, like food, clothes, and activities, as well as major milestone costs. This will help determine just how much it will cost to see your child grow from newborn through adulthood.
Newborn to School-Age Children
The early stages of a child’s life are often viewed as the most expensive. A newborn baby requires medical attention, dozens of gadgets and clothes, plus the necessities for diapering.
One of the other biggest costs for young children is childcare and preschool. Parents who choose to return to work outside the home will be faced with the need for childcare. This can come at a very high premium.
High School-Age Children
As a child grows, new costs are introduced. When a child reaches the high school years, they are often ready to start driving. This, however, adds a new set of costs and concerns for parents, such as young driver insurance.
There is a positive financial milestone in these high years, however. As children reach the hallowed halls of high school, they are eligible for many part-time jobs. These jobs for teenagers allow children to experience the real world, gain valuable work experience and earn their own money.
College-Age Children
The biggest cost associated with college-age children is college itself. Parents are often so concerned with the final steps of their child’s education that they will start discussing options and saving strategies before their child is even born.
Ways to Save Money When Raising Children
Staring at these costs one right after another can be overwhelming, to say the least. It can seem impossible to ever be financially ready to raise a child or a large family. Fortunately, there are ways to save a little bit of cash here and there.
#1 – Thrifting and Coupons
Rather than buying the newest piece of brand-name clothing or high-priced toy, consider thrift. It’s a great way to get gently used clothes and inexpensive toys and games. You can also save money by searching the internet for coupons and discounted merchandise.
#2 – Consider All Childcare Options
When deciding to have a family, it’s important to discuss all childcare options. If possible, consider staying at home or working from home. This will cut out the high cost of daycare or nannies. It’s also a good idea to look to trusted friends and relatives for childcare.
In most cases, these options are free or much less expensive than other daycare options.
#3 – Cut Food Cost
Food is another cost for families and young children. It can be expensive to eat out or purchase pre-prepared meals. The best way to limit the cost of food is to plan and prepare meals at home.
Consider meal prepping one night a week, batch cooking, or cutting down some of the prep work with pre-cut vegetable and fruit options.
#4 – Pay Yourself First
The best way to be financially prepared for a child and save money is to intentionally set money aside for future needs or emergencies. Start by putting away a small, predetermined amount from each paycheck. Putting this money in an interest-earning account will quickly add to the bottom line.
The money you save can help in any stage of life or financial need and help you feel more secure.
Children and Life Insurance
Life insurance may not be an expense you think of when discussing the cost of raising a child, but it’s a great option for many families. Life insurance policies for children are affordable and easily added to existing policies.
A life insurance policy for a child isn’t just for tragic situations. In fact, these policies can act as savings plans, protect future student loans and educational options, and help a child get lower insurance rates as they grow.
The truth is, a life insurance policy can be just another determinable cost for your child. It’s another way to diversify the options for your family and children. These policies aren’t for every family in every situation, but they might be for yours.
Laura Gunn writes and researches for the life insurance comparison site, QuickQuote.com. She is a mom to two young boys and understands just how expensive raising kids can get.