Goo Goo Gahh?! The Unexpected Costs of Having a Child

Women generally are aware that having a child means more costs for your household. However, ‘more costs’ is not a good estimate of the actual price you should expect to dish out for your newborn.

Many new parents significantly underestimate hospital expenses associated with giving birth. Did you know that according to a study by Truven Health Analytics, the average total cost for care at a hospital was $32,093 for a vaginal birth and $51,125 for a Cesarean Section? While this is the cost before you factor in health insurance coverage, the average out of pocket costs for care is still about $2,244. If you have had a child before, or maybe have a sister, mother, aunt, or friend who has shared their stories with you, they might have told you that not everyone sticks to their original birthing plan. Some women might tell you that they planned to give birth naturally, without any medication only to get to the hospital and completely change your views. This is a cost that you probably didn’t budget for and will now have to pay for.

Not only is the actual process of giving birth expensive but the cost of raising a child to age 18 is hefty. Did you know that the average cost for middle-income parents to raise a child born in 2013 is $245,000? And that does not include the cost of college. In some areas, you can buy a house for $245,000. Or you can send almost 4 kids to a 4-year college. Or about 4 gorgeous Lexus SUVs. So, to sum it up, it costs a lot!

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Although parents and parents-to-be know that babies cost a lot, I think they fail to realize just how much they actually cost. The problem when you don’t budget properly for your child is that you must find that money from another source. If you are pulling money out of your emergency fund constantly to pay for childcare costs, or clothing or other expenses for your child, you are walking on thin ice. If you are depleting your emergency fund and a real emergency comes along, you will be in a sticky situation. The same goes for building up debt to cover costs. The more debt you build up, the deeper you dig yourself into a hole.

baby feet

I am a mother-to-be, what are my next steps?

 

  • Review your current budget plan for your newborn
  • Review your emergency fund
  • Have you budgeting for unexpected expenses? How much did you set aside?
  • Have you thought about a 529 plan to start saving for college? Find out all about these accounts in the Wisdoms section of the website.
  • Nee more help? Give us a call!

 

 

I am a current mother, what are my next steps?

 

  • Review your current budget plan
  • Review your emergency fund
  • Where do your child's costs fall on these plans?
  • Can you cut anything out of your budget? Do you need to find another source of income?
  • Have you thought about a 529 plan to start saving for college? Find out all about these accounts in the Wisdoms section of the website.

 

 

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