One of the most rewarding things in life is the privilege of raising a child, but it is no secret that raising a child can also be expensive. In 2023, the USDA found that the cost of raising a child to the age of 18 was $331,933. Knowing the price a growing family can bring, how can young families navigate the costs associated with raising children?
Here are four tips to consider when planning for your family’s future:
1. Be Realistic
First, aware yourself of the realistic costs that are associated with raising children, both short-term and long-term. Think about the healthcare expenses that start as early as prenatal care, the fine details of what kind of housing your family may need as your family grows, the day-to-day costs of necessities like food and clothing and the potential cost of education and extracurriculars.
2. Budget, Budget, Budget!
Be strategic with your money management. Set specific financial goals and create a detailed budget that tracks all your current and future expenses. You can create detailed targets through developing S.M.A.R.T goals and finding a helpful budgeting tool. If you use SESLOC Online Banking, try the built-in Financial Tools. You can view and manage all your financial accounts in one site, including accounts at other banks or institutions.
Also, give yourself peace of mind by prioritizing your savings. It’s not a matter of if, but more rather a matter of when unexpected life expenses will pop up. Plan ahead by putting away a certain amount each month or pay period to an emergency fund.
3. Start Financial Literacy Early
Get your kids involved with money management early. Open a savings account for them and help them set savings goals. Encourage them to save part of their allowance or any gifted money, and practice long-term saving for something special. Involve them in routine errands, like grocery shopping. Go over your shopping list, coupons, and budget together. Talk about making choices, like if you buy a treat today, you can’t buy another tomorrow.
4. Get a Helping Hand
It never hurts to seek advice from a professional. SESLOC offers free educational webinars, financial health tips, and complimentary financial counseling from our partner GreenPath Financial Wellness. Whether you’re simply looking for advice, or need a long-term game plan, GreenPath’s experts can help you take the next step on your journey to financial wellness.
