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Bracing for baby
Expectant parents should be thinking about some very basic questions as they figure out the costs of bringing a new life into the world.
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Carmen Wong Ulrich
While planning the right time to start or expand your family isn’t always possible, if having kids (or more of them) is in your future, it's a good idea to think ahead of time. Raising children is one of the biggest expenses you’ll take on in your life. To get some idea of the costs associated with bringing new life into the world, we talk withCarmen Wong Ulrich, the co-founder and President of ALTA Wealth Management, a frequent expert guest on ABC’s “The View,” a mother, and the author of “The Real Cost of Living: Making the Best Choices for You, Your Life, and Your Money.”
Where do you start when planning for kids? Ulrich says the logical place to begin is by thinking about what it costs to be pregnant. “How much time will you take off?” she asks. “How will that time be paid for? And what capacity will you return in when it’s time to come back to work?”
Ulrich also reminds us that where we live is our number one expense. “Can you stay? If you need to move, how much more could you get for your money? Could you even reduce the cost of living by making a move?”
There’s also transportation, childcare, the challenge of living on one paycheck, and the cost of food. Babies eat differently than six year olds, she says, so that’s a new expense to consider. And if you have a growing teenage boy in the house… look out. “They can eat you out of house and home,” she laughs. Listen to the full interview in the audio player above.
Want to know exactly how much it costs to raise a kid? Click here to use the USDA’s “Cost of Raising a Child Calculator.”
There is a way to have babies for cheaper than the norm. We use cloth diapers and wipes instead of disposables. We breastfeed instead of using formula. We don't buy new baby clothes, but ask friends and relatives if they have any in their attics/storage - they often do. We received many used baby items from friends including a crib, changing table, etc. And, I started a job that lets me work from home so we save on daycare.
Obviously, not all of these options are available to everyone, but the easiest ones (like cloth diapering/wipes) can save a substantial amount of money. And the best part about using cloth and getting hand-me-downs? It doesn't go into the landfill and new resources aren't used to make new ones. We are basically saving the planet AND some money! Win-win.
Our biggest expense from having a child has been my reduced work hours. Next on the list, a cost likely associated with waiting so long to have children, fertility treatments. Even if you get off cheap, as I did, and don't end up in IVF, surrogacy or adoption (yep, pricey!), even basic fertility treatments often aren't covered by insurance (even though mine were to address problems associated with recurrent miscarriage - factor in expense of stress and coping for those as well). There can be a big financial and emotional cost to waiting until you're financially "ready".
Children themselves, if healthy, aren't so expensive. We bought no special foods for ours, just a little food mill received at a shower, (probably why she's a great eater) and have used mostly cloth diapers - not a big deal if you have a washer and dryer. There are loads of good clothes/toys to be gifted or found at thrift stores for dirt cheap.
