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Am I Financially Ready to Have Kids?

May 31, 2022 by Vicky Monroe

Am I Financially Ready to Have Kids?

Everyone knows that having kids is a huge financial commitment. According to the US Department of Agriculture, it costs about $272,000 to raise just one child from birth to age 18. Sadly there’s a growing group of millennials who want children, but can’t afford to have them. The cost of childcare, diapers, formula, and other essentials adds up, which puts having a baby out of financial reach for some couples.

Since my partner and I got married, we’ve been thinking more about family planning and whether or not we can afford to have kids in the near future. Here’s what we’ve decided.

Why We Can’t Afford To Have Kids Now

According to the estimate above, it costs around $15,000 per year to raise a child. That figure doesn’t include the price of higher education and probably doesn’t factor in additional costs for kids with special needs. My partner and I can’t afford to raise our annual expenses by $15,000 or more while still meeting our long-term financial goals like building a rental property portfolio and retiring early.

Having a child would put our financial goals in jeopardy, so we’ve decided kids don’t fit into our plans right now. But we’re doing everything we can to improve our financial situation so we can meet our savings goals while raising kids. Here’s what we’re doing to financially prepare for having a family so we don’t miss our window to have one.

What We’re Doing To Afford Kids in the Future

Raise Our Incomes

To be able to afford kids while meeting our other financial goals, we need to raise our incomes. I’m a freelance writer and I’ve raised my rates for new clients by $20 per hour, which will help me increase my annual earnings. I’m also working on side hustles like food photography and crafting to generate some extra income. My spouse is a salesman and is trying to advance to management, which will come with a pay bump.

Hopefully our combined efforts will raise our income by at least $15,000 so we can start a family without jeopardizing our other financial goals.

Pay Off Our House

Right now we’re trying to aggressively pay off our house to boost our monthly cash flow. Without a mortgage, our housing costs will be a little less than $400 per month. Since we’re paying $1,350 now, that will free up $950 per month, which can be put toward expenses like childcare and formula.

Build a Support Network

My spouse and I moved to rural Michigan about a year and a half ago. We don’t have any family out here and we haven’t made many friends. Having a support network you can rely on to babysit your child when needed makes it much easier and cheaper to become a parent.

Luckily my partner’s mom loves where we live and is seriously considering moving here. We’re planning on building a cabin for guests on our property or converting the basement into a mother-in-law suite. That way she has somewhere to stay rent-free if she decides to visit for extended periods of time or move out here permanently. My parents will also be able to use the cabin when they come out to see us, which will hopefully encourage them to visit more frequently.

Wrapping Up 

Starting a family is important to us, but we don’t want to jeopardize our financial security to do it. We want to be in a strong financial position when we have kids so we can provide them with a great quality of life. 

Do you have kids? How have they changed your finances? If you don’t have kids yet but are planning to in the future, what are you doing to financially prepare for the increased costs they bring? Share your thoughts in the comments section below! 

Read More 

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Vicky Monroe
Vicky Monroe

Vicky Monroe is a freelance personal finance and lifestyle writer. When she’s not busy writing about her favorite money saving hacks or tinkering with her budget spreadsheets, she likes to travel, garden, and cook healthy vegetarian meals.

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