by Stacy Francis, CFP®, CDFA
My nutritionist had a baby a month or so ago. She told me over the phone that she was relieved beyond words that her insurance company had covered most of it, because the bill for her birth and subsequent hospitalization added up to a whopping $80,000. You just wait, I told her.
Because the thing is, while children are wonderful, and the greatest joys of many people’s lives, they are also huge financial responsibilities. Bringing one into your life requires a great deal of planning, especially if you – like most mothers – want nothing but the very best for your youngster. Here are just a few things to consider:
- Childcare. If you and your spouse both work full time, someone needs to care for your treasure while you’re at the office. From nannies and Montessori schools to public daycare and occasional baby sitters, making sure your baby is always safe and in good company can cost you. Lots.
- Your work life. You may want to cut back on your hours to spend time with your baby – even stay at home for a couple of years. The higher your current salary, the more you will feel this drop in income.
- College. While your child may score an amazing scholarship, chances are also, you may need to foot a good portion of the bill. With tuition many times in excess of $20,000 per year, be prepared and make sure you leave room in your budget to start saving early.
Of course, many more factors can (and will!) apply to your specific situation. By thinking ahead you can give your child a wonderful life, without sacrificing your own.