Wow, this is a heavy number. Having my son (and awaiting our second) was one of the most life-altering times in my life. He has been an addition to my life, despite the fact that he has subtracted my time for bar-hopping, golf-playing, and jet-setting. Net-net, though, our son has added tremendously to our family and life.
The other subtraction has been in our family’s spending and cash flow. Managing this component has been a learning experience, and now I can share some insights with you.
There are three stages of kids’ costs that I would consider when you are planning for your new addition to the family: Upfront, Ongoing and Future costs. You need to think about saving and managing savings for each of these distinctive expense categories differently. For today’s blog, we will talk about preparing and saving from inception to 2 years old.
Upfront Costs: From 9 months till arrival through age 2.
Some of these costs you need to save for before the baby comes. Begin saving for all costs that are needed immediately and more, if possible. The other costs can be funded from cash flow over time.
There are of course ways to make sure you don’t pay $61,000 in those first two years, but that means you should plan ahead! There are lots of blogs on how to save with children, so do some investigating and learn some tips and tricks maybe before you buy the most expensive stroller available.
Just remember, the value of a child to your life can be well worth the cost. Don’t let this figure hold you back, but plan and budget so that your new family isn’t thrown for a financial loop. Try Wela's Free Budgeting Tools to help keep you on track. Stay tuned for our next blog on the cost of a child from 2 to 18! That’s right, we’re talking about 16 more years of kids’ costs, and this is just the second part.