PW Design and Co

When most people think about starting a family, they envision the joys of parenthood, the milestones, and the unconditional love. But beyond these heartwarming aspects, there’s a practical side to raising children that often gets glossed over: the cost. Let’s take a closer look at the financial implications of having kids, from the initial expenses to the long-term financial impact.

The Initial Expenses

Before your baby even arrives, there are significant expenses to consider. The cost of prenatal care, delivery, and any complications that might arise can vary widely based on your healthcare plan and location. In the U.S., for example, the average cost of childbirth without insurance can exceed $10,000. This figure can be even higher if you opt for a private room or experience complications.

I am beyond blessed to be Canadian and in Canada we thankfully don’t have to pay to have our babies, the expenses are still very real when it comes to prenatal care. For my second pregnancy, I was working with a chiropractor, a massage therapist and a pelvic floor specialist to make sure my health was looked after during pregnancy. Chiropractor was $78/visit, massage therapy is $100/visit and pelvic floor specialist is $130/visit. Does not take long to add up.

Beyond medical costs, there’s the expense of setting up a nursery. Cribs, changing tables, baby monitors, and other essentials can add up quickly. Don’t forget about the cost of baby clothes and supplies, which, while not extravagant individually, can become quite substantial when totaled.

Ongoing Monthly Costs

Once your baby is home, the expenses keep coming. Diapers, formula (if not breastfeeding), and baby food are recurring costs that can add up. On average, parents can spend around $1,000 a year on diapers and another $1,000 on formula, although this can vary based on brand and feeding choices. 

Not to mention your delivery/eating out increases. Dealing with sleep deprivation, a clingy newborn and just an all round feeling of exhaustion will have your ordering out more frequently than you would like. 

When your child gets older there are immense costs with after school activities and of course the cost to entertain the family. It’s not uncommon for a weekend of fun activities to cost well over $500.

Childcare and Education

For many families, childcare is one of the most significant ongoing expenses. The cost of daycare or a nanny can vary greatly depending on location and type of care. In urban areas, it’s not uncommon for full-time daycare to cost between $1,000 and $2,500 per month. This can be a major financial strain for dual-income families or single parents.

The struggle to find childcare is also real, if you’ve agreed to spend $1000/month on daycare, you still may end up on a waiting list for months. In Canada the goal is to get to a $10/day daycare cost, which I applaud, but is turning out to be more of a pipe dream than a reality.

Education costs, from preschool to college, add another layer of financial commitment. Preschool and early education can cost several hundred dollars a year. As your child progresses through the educational system, costs for extracurricular activities, tutoring, and school supplies can further strain your budget. And let’s not forget the potentially enormous expense of college tuition, should you choose to cover that expense for your children.

The Long-Term Financial Impact

The costs of raising a child don’t stop once they turn 18. Many young adults continue to depend on their parents for financial support through college and early career stages. This can include covering living expenses, education costs, or even helping with student loans.

Additionally, there’s the impact on your retirement savings. The more money you spend on raising children, the less you may be able to save for retirement. According to some estimates, parents may have to cut back on retirement savings by as much as 30% to accommodate child-rearing costs.

Serious Consideration

With all these financial responsibilities for parents, it is no wonder why couples are not having children. And why financial stability was so important to my partner and I before we started our family.

What’s your take on the financial impact of having kids?