Welcome to our Cost of Raising Children Calculator! It’s an excellent tool for determining how much it will cost to raise your children to the age of 18. For more information on the cost of raising children, see our informative article below the calculator. Thanks!
How Much Will it Cost to Raise Your Children?
Thinking about having a child? Already have a few children? Wondering how much children cost you until they’re 18?
It’s important to recognize that children add significantly to your household expenses. They’re a wonderful gift, yes, but it’s crucial to be aware of these costs to properly forecast your budget.
Our Cost of Raising Children Calculator will help you estimate the cost of up to six children. So whether you’re thinking about starting a family or want to know how much your children are currently pulling from your wallet, our calculator has the answers.
How to Use the Cost of Raising Children Calculator
Start by selecting the number of parents in your household. This variable matters because parents spend differently on children who have one parent versus two. A child with two parents is more likely to cost more than a child with one.
Next, enter in your household income. It’s interesting to note that households with higher incomes spend more on their children. The more income available for spending, the more parents will spend on their children. It’s important to keep this in mind. Should your income go up when you have children, try keeping your lifestyle down – in other words, avoid lifestyle inflation that leads to frivolous spending!
After that, enter in the age(s) of your children. If you don’t have any children yet, add a “0” for every child you’re considering having – that will tell you the total cost of the children from birth to 18 years.
The results will automatically update with a total cost of raising your children. In addition, you’ll get a breakdown of the yearly expenses, including expense categories.
Saving Money on Successive Children
By playing around with the Cost of Raising Children Calculator, you’ll notice that successive children cost less than the first child. Why is that?
Let’s say you have one child and upgrade in housing to have more room. That’s a pretty large cost right there. But after a few years, you have another child. Will you need to upgrade in housing again? Probably not. The kids can share a room or you might have room to spare. No extra housing expense there!
This is the case for other important expenses such as food, transportation, clothing, and more.
Don’t assume that having a second child will double the cost – it’ll cost less than that.
How to Prepare Your Finances for Having a Child
Nine months is a long time to prepare for a child that’s on the way. During pregnancy, it’s important to take some steps to get your finances in order.
As detailed in Phase I: The Foundation Phase, it’s important to start a budget if you haven’t already. Use the results from the Cost of Raising Children Calculator to add these additional expenses to your budget, and see how well you do. Think of it as a “trial run” of your new budget before the baby comes.
Additionally, it’s crucial to have appropriate insurance policies in place, especially health insurance policies in anticipation of the baby. Don’t be caught underinsured.
It’s a fantastic idea to save, save, save during pregnancy. With a baby can come all kinds of unexpected expenses, and you’re going to need cash in the bank to pay for them when they hit your wallet. Make saving a top priority. You can try and anticipate every expense, but most likely, you’ll miss a few big ones.
Build your new lives piece by piece. Don’t become overwhelmed. Having a child is a wonderful, life-changing experience. And by preparing your finances ahead of time, you’ll save yourself from many difficulties.
If you already have children, have a child on the way, or are considering having children, be sure to talk with a Certified Financial Planner™ who can help you build a bright future for your children and family.
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