Tuesday, December 8, 2009
Raising Children in Today's Economy
By Eric Gursky
Having and affording children in this economy can be very tough on some families. With inflationary costs increasing the prices of almost all daily commodities and college becoming very expensive, budgeting is more relevant now that ever. Start saving early! If there is one thing I have learned in this course it's that the opportunity cost lost by not saving at least 10% of your money early in life can set you back later. It will help you plan out a budget to pay for all the incurred expenses children bring upon.
Probably the biggest expense you'll incur once the baby is born (excluding a college education) is for child care, which is especially expensive for infants. Even when your child is old enough to go to school, you'll have after-school care, summer camps, and other related expenses.
Any parent facing the prospect of keeping their kids clothed, healthy, well-educated, and maybe just a little bit spoiled is looking at some scary costs. That's even before we start talking about college, where tuition today tops out above $20,000 a year at many private schools - and who knows what it will be when your little Einstein is 18.
These are just some of the main costs associated with kids, spending money and unexpected injuries and costs will occur and you will need to plan for them to have enough money to support yourself as well.