The Financials Of Family Life

| June 8, 2017 | 0 Comments

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Starting a family with someone you love, or on your own, is a massive emotional decision. The birth of one’s child is often described as the greatest moment of a person’s life. It is then rather predictably superseded when your child starts making you proud by uttering their first word, walking for the first time, and getting through their first day at school. And that is just while they are an infant. When they are grown up, and they have a job, a loving relationship and children of their own, the joy that you feel is renewed. However, having a child is also a massive financial decision, and while it may seem rather cold to think about human life in such terms, the reality is that children are expensive. A study conducted in the US found that as of this year, the average cost of raising a child until they are seventeen is $233,610. The most troubling aspect of this statistic is that it rose by 3% from last year. The fact that it is getting more expensive should give you pause. As a parent, you will take on the responsibility of raising your child, and if you do not think you will have enough money to do it right now, you may want to wait for a while until your finances are in better shape. Here are a few of the things that you will need to pay for and how to make them more manageable:

There are a lot of initial expenses when you have a child, such as natal care, birthing classes, a nursery for your child, and all the toys, clothes, and safety equipment that they’ll need. If you find that your budget is stretched by these demands, you may want to think about borrowing some money. If you conduct a personal loan comparison, you can get the best rates. It is a risk because the costs of raising your child will continue to mount and starting out in debt is not a good choice.

The study cited above also found that the largest single expense associated with raising a child is housing, which accounts for an average of 29% of the cost. At nearly one-third, the place where you live should be a major factor in your decision to start sharing it with a baby. For example, you may be wondering whether it is better to rent or to buy a house. Well, a study conducted in April found that homeowners pay from 33% to 93% more than renters in all 50 states and Washington D.C. However, if you are starting a family, buying a house may have its upsides because it brings with it lots of benefits such as financial stability and tax deductions. Besides, with every month that passes, you will be closer to owning your own home and being able to bequeath it to your child. Conversely, renting has been found to be cheaper if you do it on a month to month basis. This does not offer you the security of knowing that you will not have a price hike or that your building will be sold from under you. There are benefits to both options, but choosing the right one depends on your own circumstances.

Category: Personal Finance

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