| |
How much does it cost to have kids? That depends…
|
| In many instances, child rearing costs will depend on personal choices
you make for your child. Costs can range, depending on what parents can
afford and are willing to spend. General cost estimates won’t be helpful
to you until you carefully consider your own family and financial
situation and decide how much and on what you want to spend. |
| |
| A Canadian study found that to raise a child from infancy to adulthood
(if you didn’t give your offspring another cent after they turned 18),
would set you back a total of $193,000. However depending on individual
circumstances, this number can be variable. |
| |
| Families in a lower income bracket tend to spend less on their
children – seems simple. This figure of $193,000 applies to families whose
total household income ranges from $57,000 to $99,000 annually. Families
that bring in less than $57,000 a year are shown to spend around 30% less
on child care costs over all – so $135,100 rather than the initial
estimate of $193,000. Keeping things like household income, lifestyle, and
where you live in mind will help you determine how figures you come across
in your budgeting research will apply to you. |
| |
| Furniture and baby equipment are one good example of upfront, variable
costs. Some parents will spend $11,000 plus on a changing table, crib and
bassinet, stroller, car seat, high chair, etc. Others will opt for fewer
high-end items, or combine with free hand-me-down gear. Your final costs
will be a reflection on what you have decided is both important, and
possible, for you to spend on. |
| |
| Using cloth diapers rather than disposable can save you around $1,500
over your child’s first two- and a half years (and you will be able to
save substantially on diapering any future children since you will already
be set up with all your cloth diapers). |
| |
| What and how you choose to feed your child will have a big impact on
your budget in the early years as well. Formula prices range, from generic
brands to more costly and organic types. Generally, a good formula will
cost about 12 cents per ounce, and your child will consume between 30-40
ounces per day over their first year. You can plan to spend about $1550 on
formula alone during your child’s first year. Breastfeeding, on the other
hand, can be essentially free – though in both cases additional costs will
depend on what extras and accessories you decide to purchase. |
| |
| Even the activities your child is involved in will affect your budget
– hockey, for example, requires expensive equipment which will need to be
replaced as your child grows out of it – soccer, basketball, or swimming,
on the other hand, don’t call for the same amount of costly gear. |
| |
| One of the largest costs you will encounter is childcare. Childcare
costs range drastically from region to region. Infant care in British
Columbia averages $705 a month, while it falls in the range of $470-482 in
Quebec, Saskatchewan and New Brunswick. Keep in mind this monthly cost
will depend on what type of daycare you choose (private or public, a small
home run daycare or a larger education center). Your childcare costs might
factor in the cost of a lost salary if one parent decides to stay home, or
could be non-existent if you can arrange for someone (a grandparent of
other family member) to watch your child. How you plan to care for your
child in its early years can have a big impact on your overall
child-planning budget. |
| |
| Lastly, the number of children you have in your family will affect
your budget. ‘Family size’ discounts extend past the grocery store, with
more children lowering your child-rearing costs per child. On average, a
Canadian family with one child spends 24% of its income on child-related
costs, while those with two spend 36% of their total income on their kids. |
| |
| The key to planning a budget that is right for you is to keep in mind
the ‘on average’ phrase that is cited in most information on child-related
costs. Determining how your family fits in to the ‘average’ Canadian
family statistic will allow you to tailor your baby budget to something
that is right for you. |
|
|
| |
|
|
|
