Kids are the Future: 5 Expenses to Plan for
It should come as no surprise to anyone that raising a child can be very expensive, and that is why every parent needs to keep a close eye on their finances. While you can do quite a bit to steer clear of certain expenses, there are going to be some major financial obligations that you can’t avoid. Here is a look at five expenses that your family needs to plan for.
Childcare
Unfortunately, childcare costs are on the rise, and some parents are spending thousands a month on nannies, sitters, and other childcare services.
In addition to putting some money away for this expense, you should speak with your company’s HR department about childcare assistance programs as well.
Some states also offer tax credits and financial vouchers to parents who are paying for these services.
Emergency Room Visits
Practically every child is going to head to an emergency room at least a few times as they grow older, and the medical bills that you receive after those visits can be staggering.
Most health insurance policies will cover emergency room visits, but you should be prepared to pay the deductible.
The deductible is a flat rate that you pay before the insurance policy kicks in.
Orthodontic Services
Having your child brush and floss multiple times a day will reduce their risk of many different oral health complications, but there may come a point when they need braces.
Orthodontist services and orthodontic devices are very effective, and they often straighten a child’s teeth in a short time.
If you can’t pay for the braces upfront, then you might want to speak with the orthodontist about a payment plan.
Team Sports
Playing sports is a great way for a child to learn teamwork and stay in shape.
While most leagues for younger children are relatively inexpensive, you will probably end up paying quite a bit of money if your kid joins a traveling or club team.
Some of the additional expenses that you should plan for include athletic gear, gear bags, custom jerseys, and referee fees.
Tutoring
Even the brightest kids are going to need academic help at some point, and one-on-one tutoring can be extremely effective.
Many schools have tutoring and mentoring programs, but you should also check the local library. Libraries often have free or inexpensive classes for students of all ages.
If you are still worried about unexpected expenses, then you need to start building an emergency fund.
That fund should be able to cover all of your family’s expenses for at least three months, but some experts suggest building an emergency fund that will last for six months or longer.
Category: Saving Money
