When most couples sit down to discuss the financial implications of having a baby, they tend to crunch numbers to figure out if they can afford daycare, formula, a crib, and the ever-important steady supply of diapers. However, few people stop to recognize how expensive it is to raise a child into adulthood. While plenty of people are wise enough to realize that their children will need to be fed and clothed throughout the years, other child-related items (expensive ones at that) some parents simply don’t think of until it’s too late and they have no choice but to skimp or borrow in order to cover the applicable costs.
Jim Barker of Barker Insurance Services is a personal financial representative who spends his days helping clients develop budgets and prepare for the unexpected – or, in some cases, the “should be expected.” The following are some of the major child milestones that Barker thinks all parents need to take into account:
College
Of all child-related expenses, college is certainly the biggest. Many parents make the mistake of starting those college accounts too late. With the cost of tuition rising among private and public universities alike, parents need to be vigilant when it comes to funding those college education plans.
Elementary, middle, and high school education
Some people are fortunate enough to live in areas where the public school systems provide a decent education. But others might find themselves in districts where the educational systems leave much to be desired. Depending on the circumstances, college might not constitute the only educational cost that parents have to face. While some parents choose to send their children to private elementary, middle, or high schools for religious reasons, others find themselves compelled to do so when they realize that their local schools aren’t as safe or educationally effective as they’d like for their children.
New furniture
If all goes well, most children eventually come to outgrow the bedroom ensemble that consists of a changing table and crib. Therefore, parents should budget for furniture items such as beds, dressers, and desks. And while not every child needs his own personal TV or stereo system, certain electronics such as computers are becoming staples, especially during a child’s high school years.
Braces
Not every child is born with perfectly straight teeth, and depending on the genetics involved, some parents would be best served by starting a “braces fund” as early as possible. Despite the fact that most kids consider braces a rite of passage, the cost of having them is something that still has to come out of their parents’ pockets.
The big birthday
Though certainly not a childhood must, a milestone birthday event such as a Bar Mitzvah or Sweet Sixteen is likely to come with an extravagant party designed to kick the celebration into overdrive. The fact of the matter is that although a child can grow up to lead a happy, normal life without having such a party thrown in his honor, no parent wants his child to be the only kid in class without one.
The first car
While providing a child with a car certainly constitutes going above and beyond the call of general parental duty, many parents strive to be in the position to be able to do so, especially once their kids go off to college and need a method of traveling between home and school. What plenty of parents tend to do in such situations is either go out and buy a used car, or hand over an older family car and buy a new one for the adults. Either way, there is a cost involved.
By knowing what major child milestones to prepare for, parents can put themselves in the best position to save accordingly throughout the years so that they don’t have to disappoint their children – or overstrain themselves – when the time comes to fork over the big bucks.
