What to budget for having children? (Urban environment)

posted 2 years ago in Money
Post # 16
2925 posts
Sugar bee
  • Wedding: April 2017

sunworshipbride :  So I’m in the US, the suburbs of a big Midwestern city, so my numbers will be different than yours.  Since I’m TTC, I’ve talked to my sister a lot about this as she has 3 kids.

My sister is a doctor and her practice, because it was small, did not cover FMLA, so she had no income for the 12 weeks she was on maternity leave.  Obviously since I’m not a doctor, I won’t lose that much, but since I am a Realtor (and too don’t get paid if I don’t sell) and work contract, I too will not have any income when I’m on leave.  So for me, it’s a bit hard to judge, but based on what I’m making now between the 2 jobs, I’ll be out a minimum of $20,000 pre tax, more likely more.

To add a baby to our insurance costs an additional $35/month.  That’s an additional $420 a year.

I’m budgeting around $3,500 out of pocket insurance cost since that’s our deductible.  But then our cost is 20% after that so like my friend, total around $5,000.

I’m budgeting $1,000 for nursey furniture.  My mom said she would buy us a crib (as my friends are also of the TTC age and I don’t have one to borrow).  We’ll need a couple of dressers and a recliner too.  And paint and decorations.

Diapers, wipes, baby bottles and such – probably a minimum of $50 a month.  That’s $600 a year.

And all that is for the first year alone.  Kids get more expensive as they get older.  My oldest niece has asthma and a lot of allergies.  Her medications alone are around $300 a month.  She’s 7 and just started dance.  You don’t want to know how much that cost.

So the conservative estimate of $1,000,000 to raise a child to age 18?  I can totally see it.

Post # 17
1773 posts
Buzzing bee

rosydelight :  I’m in Saskatchewan and these are all things we have to cover here as well. They aren’t exclusive to Toronto. 

Post # 18
1463 posts
Bumble bee
  • Wedding: March 2015

sunworshipbride :  You’re not going to be able to pin down a concrete number because there are so many unknowns. Like you can plan to breastfeed, but if you run into issues, you’ll have to supplement or replace with formula. Assuming the baby is otherwise healthy, he/she might still have allergies or sensitivities that require spending more on certain items.

I’m due in June so I’ve started doing some basic budgeting for 2018. My suggestion is to sit down first and just figure out your preferences and expected needs. Like will you be needing daycare? Do you want to do cloth diapering or use disposable diapers? Are you interested in enrolling your baby in swim classes, gym classes, etc.? Then research the monthly average costs of these items and add 20%, 30% or whatever would be comfortable for you as a buffer.

I’d also just redo the budget each year after the baby is born since he/she will require more spending with age, like having to buy food or pay for summer camp. Again, this is all based on your child rearing preferences, and you might have more than 1 child. You might have a different job or different health insurance, you might not be living in Toronto anymore, etc.


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