By: Li Bin Chen
A newly married couple enjoy a few years of alone time. Few years into the marriage, the couple decided it’s time to have a baby. They think that the baby will add live energy and love into the marriage. Most people just want to have a baby, but how many of those people really considered how much will bringing up the baby cost? Let’s put it simple: the couples will have to alter their way of living and spending because of the arrival of the new baby.
Having a child is very expensive. Financial experts say a home is the biggest investment most people will ever make, but they're forgetting about the cost of raising children, which far exceeds the average home price in the US.
First, the couple had to consider how they’ll manage on the reduced income caused by time off for the pregnancy and birth? The biggest expense that parents will incur is 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.
Parents need to buy more life insurance, write a will and start a college fund as soon as the little baby has a Social Security number. A 2005 survey found that 87 percent of people with a baby on the way fear being stressed out by the expenses. Worse, 81 percent of new parents confirm those fears.
According to the U.S. Department of Agriculture, a middle-income family will spend more than $250,000 to raise a child. And that total does not include private schools, infertility treatments, or special lessons. College costs alone can add another $100,000 to $300,000.
References:
http://parenting.ivillage.com/mom/finances/0,,nrmq,00.html
http://money.cnn.com/magazines/moneymag/moneymag_archive/2006/10/01/8387562/index.htm
http://financialplan.about.com/cs/familyfinances/a/CanYouAffordKid.htm
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