Medical Bills and the Family Budget
Most couples think that having health insurance covers basics like delivery and vaccines. Unfortunately, there are some policies that don't cover everything. Sometimes, only partial coverage is provided for epidurals and emergency room visits. Surveys have indicated that 39 percent of couples pay more than £600 for medical bills related to childbirth. Although co-pays are usually reasonable for doctor's visits and prescriptions, they can add up to over £60 for each doctor's visit. If a child suffers from chronic ear infections, the medical bills can put a crunch on the family budget.
Dental care for a child can also add to medical bills. Although nowadays you can research and book dentists online to compare prices and find savings, routine check-ups, braces, dental sealants, and extractions all tally up to an extra expense over the lifetime of raising a child. Many parents don't consider this hidden cost of taking care of a child. Prevention is key, though. To help with this, take a look at this kids' dentistry infographic to get an idea of what you can do from home to help your children take care of their teeth before problems arise in the future. Not only will this help them develop good dental habits, but it’ll save you spending a lot of money.
Who's Taking Care of the Baby?
Today, most couples have jobs. Parents need to consider
whether or not to use childcare or for one parent to quit working and stay at
home to take care of the new baby. Switching from a dual income to a single
income is a tough decision for couples. A good way to decide which is
financially better is to sit down and do a cost-benefit analysis. Analyze the
costs of daycare and factor in the loss of career advancement opportunities.
The hidden cost of the loss of career opportunities is often a factor
overlooked by most parents, but it's one that needs to be considered. For some,
the loss of career advancement opportunities may outweigh the high costs of
daycare or hiring a nanny.
The Burden of Higher Educational Costs
The cost of higher education is one that parents cannot
escape. When combined with childcare costs, the total cost is 17 percent of
household expenses. In addition, college costs are expected rise anywhere from
five percent to eight percent each year. Currently, it costs about £24,000 for
a private four-year institution annually. In just 17 years, today's costs
inflate to a hefty £270,000. To prepare for these hidden costs of child
rearing, parents need to start early with a college savings plan.
Technology Costs for Kids
Although bicycles and coloring books are still a part of a
child's play stash, technological devices like iPads, computers, tablets, and
cell phones are a mainstay in today's world. Cell phones come with monthly
usage fees, and computers can be expensive. However, these technological
devices are often needed for schoolwork and communication. In addition, game
consoles and touchscreens have taken over the traditional action figures and
board games. Surveys indicate that more than 36 percent of kids have their own
device, and that figure is expected to skyrocket in the near future. Without a doubt,
today's children's toys are pricier than yesteryear's toys.
The Impact on the Food Bill
Although babies have small tummies, they can surprisingly
boost the family's food bill. Formula and jarred baby food can be pricey. In
addition, many new moms are too busy to prepare meals and rely on takeout or
prepackaged supermarket meals. When you're spending £18 to £24 a night on
takeout, it can empty the wallet quickly.The costs of raising a child include many hidden expenses. By taking a good look at the hidden expenses, parents can develop a more exact financial plan for parenthood. With proper planning, parents can eliminate many potential financial woes.
Further information:
http://momanddadmoney.com/the-hidden-costs-of-having-a-baby/
Comments
Post a Comment
I love comments and will try to respond to all