First, let me say that I am an expert on the topic of how to save money for kids. The way I became an expert is by having 4 children and never having a dime saved before they were born. Well, I guess that makes me the opposite of expert…..but I have learned a ton along the way that I would love to share with all future or wanna-be fathers out there. Of course, I would love all the future moms to read this and teach their husbands too.
How Much Does a Kid Cost
The standard number you will see thrown around on the topic is around $12,000 per year or $250,000 per kid. The truth is that the amount should be on a sliding scale. Babies especially the first one feel very expensive. The reason is that you are not used to having them and it is a large change to your expenses.
First Few Years
In truth, if I have to estimate a number for a new baby once you have all of the necessities is around $500 per month. First, you will go through a case of diapers a month minimum. Then if you are feeding them formula then it will take a few of the large containers. Other than diapers and the formula they don’t really ask for too much. Small things like diaper rash cream or binkies but in general I would say be ready for $500 more in expenses.
As they grow a little older and start crawling around the house well they need a few more things. In general, though the price stays the same once you buy the toys they need. The only real change is that the food they want starts to expand. The cost though isn’t much different.
Now, let’s move to a few years old. This is when the changes start to happen. Now when they go with you to the store they want things. Even when you buy them a toy or a snack because they are spoiled the price still stays close to the same, but the change has started to happen.
I did not talk about daycare because I avoided it with my children…. Well, I say avoid it but really my wife and I decided that it made more sense for her to stay home because the cost was more than she made per week.
Now the Real Kid Cost Starts
When kids get older they want to do things like sports, dancing, martial arts, etc. All of these things cost money so in this phase, I would add a few hundred to the cost per month. In this phase, you will also find all the rest of the costs start going up as well. They want the big meals, they start to pay attention to things other kids have, and they don’t understand that you have to pay for it.
Fast Forward
As you keep going you will find the real expenses that help you reach the $250,000 per kid price tag. They need a car, insurance, technology, college, weeding, etc. This is what I mean by a sliding scale for the cost of a kid.
Should You Wait to Have Kids Until You Have a Specific Amount of Money
This really depends on your support system. For me, I had in-laws and family that couldn’t wait to either give me their baby hand-me-downs or buy our baby as much as I would let them. To me, the simplest way to know if you have enough money is to spend a month as if you had a baby. Go to the store and price everything you would need for a month. Diapers, whips, formula, baby water, a few outfits, etc. Then take that money and put it in your savings account. If you can do this for three months straight then I would vote you are financially ready to have a kid.
You can wait around until you have enough to put them through college if you want but life changes dramatically over the 18 years of their lives. My son is now 19 and he is in his first year of college. 18 years ago I was wondering how I would afford to keep clothes on him and now he is a grown man.
The idea of college is just a normal thought and even the idea of one day helping with a wedding isn’t scary like it would have been when this adventure first started. I have no idea where I would have been if I would have waited until I was “ready” to have kids. What I do know is that I would not trade anything for what I have experienced as a father.
Advice From a Father on How to Save Money for Kids
My advice on how to save money for kids is to stop worrying so much about it. If you can scrape up the cash to afford diapers and food well then you can make it. If you have a good support system of people who will help when you need it, well then what the heck are you waiting for? Kids start off taking a ton of time and some money and they get very expensive as they get older. The key is to not wonder how you will make it work on your current salary in your current situation, instead realize that if you work hard, you will be able to keep up with the expenses of a kid as they grow. If you wait around, you are going to miss so much that is worth more than money.
Conclusion
If you can scrape up the cash to afford diapers and food well then you can make it. If you have a good support system of people who will help when you need it, well then what the heck are you waiting for? Kids start off taking a ton of time and some money and they get very expensive as they get older. The key is to not wonder how you will make it work on your current salary in your current situation, instead realize that if you work hard, there’s no way around paying more than $250k per kid during their 18 years alive here on Earth. But isn’t having kids worth so much more than just spending money anyway? You don’t want to miss out on all those funny moments with them while saving up a whole bunch of money.
