Profitt Report: Here's how much it costs to raise a child and how to manage your money
The cost of raising kids doesn’t stop when they turn 18-years-old. Often, parents are helping their kids with college, trade school and/or weddings. If you’re a brand-new parent and you hear this number, you might cringe: it costs more than $233,000 to raise a kid according to the U.S. Department of Agriculture.
“Folks are like, ‘oh, it will become less expensive at this point or this point,’ it's not an actuality true,” said Mindy McIntosh, financial professional at McIntosh and Associates in Freeland.
A financial professional and a mother, McIntosh said if it’s not diapers eating up the family budget, it’s sports, a car, college or any of the other expenses are various stages of life.
McIntosh suggests looking at your goals and asking some questions. Are both parents working? How much do you anticipate earning? And who will care for the kid? One in three families spend 20 percent or more of their household income on child care according to Care.com.
“We look through all of that to say, okay, let's try and establish a budget from there instead of just winging it,” McIntosh said.
Figure out where you can spend less money and how to save a little more. Last, don’t forget college. Start saving as soon as possible, she said.
The U.S. Department of Agriculture provides a calculator to help you determine how much it’ll cost to raise a child. Please click here to use it.
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