Plan for the fi nancial responsibilities of parenthood.
The cost of raising your child can be
daunting, especially for new parents.
According to a report from the
Department of Agriculture, it costs
$233,610 to raise a child from birth
to age 18. Keep your perspective —
and your cool — by focusing on your
household budget and long-term goals.
These tips will help to make the most of
your money when you pay for signifi cant
or unexpected costs:
Child care
Child care costs are on the rise. While
you and your spouse may have planned
on maintaining two incomes, consider
whether it may be more practical for one
of you to stay home. Create budgets for
both scenarios and weigh the pros and
cons. Still not sure? Explore careers that
allow telecommuting or fl exible hours.
Ever-evolving wardrobe needs
Babies and children constantly outgrow
their clothes, so shopping for new ones
can be a never-ending expense. Save
some dollars by swapping with other
families or checking out thrift stores for
gently-used basics.
College tuition
A single year of college —including
room, board, tuition and fees — costs
an average of $16,188, according to the
National Center for Education Statistics.
Start saving early with a 529 education
savings plan, which lets families put
away cash in a tax-deductible account.
Higher utility bills
Power and water costs go up when you
welcome a new child to the family. Air
conditioners and heaters work harder
to keep your home comfortable, and
you do more laundry. Save money by
washing clothes in large batches. Also,
check water pipes for leaks and service
heating and cooling equipment to
improve effi ciency. Ask your electric or
natural gas company if they offer fl at
billing, which makes budgeting easier.
Estimate a budget for free at
bit.ly/budget4family. The
Economic Policy Institute
tool calculates location-
specifi c costs for 10 kinds
of households.
4
tips
to deal with the unexpected costs of raising kids
For families
northwell.edu
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