It’s one of the most exciting times in your life, but make no mistake about it – kids cost a fortune. Of course, these costs have been focused in the press a lot more over the last few years. We have started to see parents being used as “bank of mom and dad” – and effectively paying for the increasing cost of house deposits.
For the purposes of today, we’re not going to look at the costs involved in buying cots, clothes and all of the other regular essentials, but instead, turn to costs that many of us don’t even think about.
This first point is one that is never really done justice. In other words, the costs of childcare are only going one way – yet many people completely forget to factor them in.
Let’s not forget that childcare can cost thousands each and every month. Whether it’s via a nursery, or even cutting down your own hours to do-it-yourself, so to speak, it is going to hit your bank balance hard. Make sure you can cope with this.
Alterations to your home
Something else which often flies under the radar is alterations to your house. Sure, you might be lucky and have a home which is perfectly suitable for your upcoming arrival. On the most part, adjustments are required. This might be an extra bedroom, or it might be something smaller like fitting blackout blinds to the room that your little one is going to sleep in. Regardless, make sure you factor it into your budget.
The mortgage costs
We alluded to this point in the opening to today’s article, but the scale of the issue means that it’s something that you should be fully aware of.
In short, more and more parents are starting to give a big helping hand to their children who are looking to get on the housing ladder. Is this something that you have to budget for? Of course, there’s no legal obligation. The point that we are trying to make is that in and amongst your elderly care costs, enjoying your retirement and even more morbid subjects such as pre-paying for your funeral, you may need to factor in expenditure worth tens of thousands.
Admittedly, in some parts of the world, this isn’t going to happen. After all, in some countries students are given loans and even grants to help them fund their studies – with the latter having very relaxed repayment requirements which entices young people to go to university.
In the United States, it’s a little different. The fees are the big factor here, and with some establishments charging up to $50,000 for a year, it stands to reason that you may need to make some allowances if this is a path that you would like your children to go down. Yes, it’s a long time away, but for that sort of money, it needs to be planned for.