5 Important Finances You Didn’t Think of As a New Parent
If you’re looking to become a parent shortly, you may think you have enough savings and have thought of everything. However, there are things that parents never think of until they have their children and wish they had someone to tell them. For example, according to a new survey from Caring.com, only four in 10 American adults have a will or living trust, which you should establish as soon as your child is born to ensure their protection! Below are a few other important finances you may not be prepared for when becoming a new parent.
IVF or Surrogacy Costs
Not all couples can conceive naturally, so they go through different procedures, like in-vitro fertilization and surrogacy, which are ways to have a family with additional help. These processes are not cheap, however; the cost of surrogacy is based on many factors, including whether you need an egg donor, your surrogate’s expenses, if they’re carrying multiple children, and the medical needs that occur throughout the pregnancy.
Tuition for Private School
You may have considered sending your child to a private school, but you might not have considered the cost of tuition, especially from Kindergarten to the 12th grade. There are approximately 34,576 private schools in America, with 5.7 million PK-12 students enrolled. Private schools make up 25% of the nation’s schools and have 10% of all PK-12 students. The tuition can range from school, but if you have a preference, you can get an estimate of what you’ll pay once that child starts school in a few years.
Medical Expenses
Even if you’re fortunate enough to have a relatively healthy child, there are medical expenses that you probably haven’t accounted for in your savings. For example, every doctor visit will have a copay even if you have insurance. Also, you will need to consider other expenses, like if your child needs braces, glasses, or other treatments to improve their quality of life.
Even the birth of this child will not be cheap, as you will find a few months later when you get the bill. The cost of hospital stays for a standard or c-section birth can cost thousands, even after the insurance has been applied. This expense will be taken from your savings for every child you have.
Childcare
Another expense that you thought about but maybe didn’t realize how expensive it is would be childcare. Many first-time parents start budgeting the costs of daycare they may have had when they were younger. Daycare today ranges from a couple of hundred dollars a week for a child, and if you have multiple children, you are paying several hundred a week. This expense can cost you over a thousand dollars a month and deplete your savings quickly.
Birthday Parties
Gone are the days of a cheap cake, hot dogs, and parties around the house. Today, birthday parties are big expenses; where you rent out a birthday service at a business like a trampoline park and serve cake, ice cream, and goodies to your child and their friends, who get to participate with them, with their costs included. These birthday parties can go for a few hundred dollars at these places, and that’s before the presents, cake, and anything else extra you want to add for their special day.
The one thing you can take away from this is that children are expensive but they are a joy to have. You truly can’t plan for every expense you will have, which is why it’s a good idea to have as much savings as possible before having children. Even after you start your family, don’t stop saving, and prepare yourself for the unexpected!