When you have children, plenty of things change. From waking up much earlier on Saturday mornings to finding toys in the crevices of your couch, there are plenty of ways that kids will reshape your life. One of the biggest ways that your life will change when you have a family, however, is your finances.
No longer will you only be looking after yourself, but also someone else. The best way to plan for the big financial changes that a child brings into your life is to anticipate them in advance. Take a look at some of the ways that your finances will change once you have kids.
Once upon a time, you could go to work or on vacation without having to worry about who would watch your children. Once you have kids, however, you’ll need to find childcare anytime that you don’t plan on bringing your little ones along.
Believe it or not, childcare doesn’t come cheap, either. It’s important that you anticipate childcare costs in order to adjust your budget. Depending on where you live and how many hours you require, you should anticipate at least $1000 a month.
In addition to paying for your own insurance, you’ll also be expected to pay for your child’s. Children have to go to the doctor much more often than adults do. Whether it’s for a yearly checkup or for an unexpected injury, you should budget going to the pediatrician regularly.
Your children won’t be in preschool forever. One day they’ll go off to college to pursue the career of their choice. Ideally, you should put aside a college fund for them to help them pay for their education costs. There are several different sorts of investment plans that can help you get your child off to a good start in school without building an insurmountable amount of debt for themselves.
Ideally, you should start putting away money before your baby is even born. However, if this isn’t financially possible for you, it’s ok to start saving once you’re able to.
If you used to live in a studio apartment downtown, you can forget about that lifestyle once you have kids. You’ll need a bigger home once your children start walking around. If you have multiple children, you’ll need an even bigger space.
Not only do children need plenty of area to move around in, but they also start to accumulate more stuff. As the years go on, children start to acquire toys, bicycles, and clothing. Living in a small space can start to make you feel crammed in. Once your children are born, you might want to start thinking about buying a home of your own.