The ‘C’ Word … The real Cost of having Children

There are lots of words starting with C – Cute, Charming, Captivating all can be used to describe Children … but can you Calculate how much Cash you will require to bring them up?

Proceed Cautiously. While Children are a reason to Celebrate they can also be a real financial Catch. And they Certainly are not Cheap! But don’t Crack up, be Creative and have some Courage as with good financial Calculations raising the little Cherubs will be a piece of Cake – and all kids love Cake!

It’s no secret that babies are not cheap. But let’s have a look at some tips which will put you on the right path to financial success.

Before you even think about starting a family, it’s important to examine your finances. What’s coming in, what’s going out and what additional expenses you will have to front up.

Put some money aside for emergencies then set yourself a clear budget and stick to it. Trim off unnecessary spending and frivolous items.

And don’t forget to factor in time off work, maternity leave and how much extra unpaid time you might want to take after the baby is born.

Babies need a small warehouse for all the paraphernalia they acquire so think about buying second-hand where possible, go to a public hospital instead of private, borrow items off friends, use hand-me-downs and think about what you are spending your money on. Do you really need that incredibly cute, but horrendously expensive ballerina outfit when baby is going to grow out of it in no time at all?

Will one parent be leaving their job, or going part-time to look after baby? What about child care? This is a huge expense so look to family where possible to keep costs down.

Check out government subsidies and what you might be eligible for.

As your baby grows – and also if you decide to add to the family – look at schooling and the type of education you want your children to have.

Uniforms, books, iPads and outings … there’s always additional expenses that need to be addressed.

Talk to a financial adviser about Education Funds. These funds offer an array of options and fees so make sure you find one that suits your needs and financial position.

Of course, there are other options for saving for their future and a financial adviser will be able to point you in the right direction. Remember, it’s never too early to start saving – the earlier you start, the easier it will be to cope with the added financial burden you are about to undertake. No matter how enriching having children is, having a sound financial plan will make for a much less stressful home environment.

Consider how long you will need to support your children. Do they have plans to go to university? Have you also put money aside for this eventuality?

We won’t scare you with just how much a parent might spend on one child from before they are born to their leaving home. The cost is enormously outweighed by the sheer joy they bring to a family.

And it doesn’t have to be scary. Talk to a financial adviser and identify your options. Come up with a smart game plan that will enable you to make the most of your situation and provide the very best for your kids.

Because Children do Come at a Cost – they kidnap your heart, steal your soul and lope off with your love.

Cherish every moment.

If you would like to speak with a financial adviser, contact us today