Raising a Baby On a Budget: Splurge vs. Save

When we first started talking about having a baby we said the same thing that so many other parents-to-be say: Let’s wait until we can afford it a little more.

We eventually realized that if we waited to have a child until we could "afford it", we'd never become parents.

I admit, it can be very expensive to raise a child in the US these days. According to Parenting Magazine, it can costs almost $200,000 to raise a child from birth to age 18. Notice that doesn’t count from conception. We won’t even go into the costs of 9-months of medical expenses plus labor/delivery costs. Other sources estimate the cost at $250,000 or more. For parents who agree to pay for their children to attend a public college, tuition can add $50,000-$60,000 or more to that estimate.

This can seem daunting & unaffordable.  But please keep in mind that the cost of raising children is spread out over almost two decades. Divided equally by 18 years, to raise a child will theoretically cost you roughly $11,000/year. If you have two children, it will theoretically cost you about $22,000/year to raise them, and so on.

Fortunately, many of these extra expenses can be avoided, which dramatically lowers the price of raising a child.  Here are 5 ways to  decrease the amount of money it takes to have/raise a child:

• Having a baby doesn't always require you to move into a bigger house. 
• The estimate quoted above includes new parents moving into a larger house to 'accommodate' the new baby.  If you raise a child in the same size home you have now (or less), you can avoid this extra expense. 
• Many young adults rush out to buy a new house as soon as they get married or find out they are expecting-but I promise, a baby will do just fine being raised in an apartment or smaller home.
• Having a baby isn't always an excuse for a bigger car.
• The online calculator used in Parenting Magazine  includes an annual cost of $1,250 for a bigger car. In our case, we were a one car family when our daughter was born.  We did need a second car, but we were able to find a good deal-thankfully, we paid off the loan recently!
• If you do need a new different car, search for good used cars with lower mileage & try to avoid financing if at all possible.  But remember, most families should be able to raise a child using the cars they already have, which saves around $15,000 over a period of 18 years.
• Ignore registry advice.
• Store registries are heavily influenced by the baby product industry itself,. Babies only need a few things. Once you have a crib, a car seat, diapers, a few clothing items and either breast milk or formula, everything else is more about making your parenting experience easier.
• Before giving birth or signing up for a registry talking to other mothers about what they found helpful and what they could have done without.
• New Baby Products vs. Second Hand Baby Products
• What You Should Buy New: Car seats, cribs, mattresses, breast pumps
• What You Can Buy Second Hand: Toys, baby clothes, strollers (if up to code & not recalled)
• Skimp on toys.
• Most babies and even toddlers are just as happy with wrapping paper, bows, and even dirt, as they are with the latest & greatest gift. 
• Look for a few simple toys (with bright colors, interesting sounds, etc) that will stimulate baby and let you play, too.
• Wait to 'spoil' your children with toys until they are old enough to truly appreciate it.

The biggest thing to remember is that many of the costs parents are told are necessary are actually unnecessary. Many can even be avoided by cost-minded parents who are eager to raise happy, healthy babies without racking up debt or going broke .
 
By following the tips above, you should be able to drastically cut the costs of raising a child. 

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