How You Can Prepare And Budget For Kids Expenses

How You Can Prepare And Budget For Kids Expenses


Many people dream of having their own children one day. Having children is a very fulfilling and joyful thing, but some knowledge and preparation before taking the plunge can be very helpful. In particular, the financial impact of kids can be a big game changer for new parents. No matter where parents are at in the child-rearing adventure, these tips can be a big help in staying ahead of the curve and thriving.

Here are a few Ways You Can Prepare And Budget For Kids Expenses

Having the Kid

Everyone hopes for a textbook, intervention free birth for their child. Ideally, everything goes well and baby is perfectly healthy. Unfortunately, even if this is the case it can be very costly. Even with health insurance having a baby involves a hefty out of pocket expense. Without health insurance it could be financial catastrophe. Ideally, be sure to have decent health coverage before reproducing. If that isn’t a reality, consider carefully how you can save ahead of time and take advantage of discounts for paying cash. Many hospitals and doctors offer a large price break for pre-paying in cash for services.


Parental Leave & Missing Work

Depending on your employment situation, you may get up to three or four months paid leave to care for your infant but that is a luxury that many don’t have. For many people, missing that much work isn’t an option or it has a huge financial impact. Having paid leave is a best case scenario. What to do if you don’t have that? Consider creative solutions such as staggering the work schedules of that parents or cashing in banked sick leave or vacation. Between the two parents this can sometimes help extend the leave to a more reasonable place.



Securing quality childcare for your kids can be a big stress or and an expensive one at that. For many families, after having two or more children it makes more financial sense for one parent to begin working part-time or not at all because of the prohibitive cost of childcare. Using a pre-tax program through your employer to budget for childcare can make a big difference in the total dollar amount spent on childcare. It may also make sense to stagger parental work schedules or space your children a big wider so that you aren’t paying childcare for two or more children at once.


Educating the Little Ones

Preschool and other early childhood enrichment activities start at a young age and may go on through college. While great public schools are available in some areas, parents may need to explore their options to see what is best for their family. Extracurricular activities such as soccer and music lessons often have a price tag as well. To manage these expenses it is good for parents to prioritize and budget to make the best choices. They may be able to afford one activity at a time for their child if they plan well but perhaps gymnastics, dance, and private piano lessons are out of the question.


These four major expenses are in addition to basic needs like housing, food, and clothing. They should be helpful in considering the financial planning needed to have children. The most importance advice before or during having a child is to have a complete picture of your financial situation. Check out Lexington Law reviews to find quality locations to check your credit and take stock of the current situation. If you feel that having kids will be too burdensome on your finances, work with professionals to get back on track again so you can feel more confident.



Guest post written by Anita. Anita is a freelance writer from Denver, CO. She mostly writes about home and family, finance, and business. When she isn’t writing, she enjoys spending time with her family and reading a good book.

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