12 Wallet-Draining Choices Parents Make For Their Children

Having kids is a life-changing event and can lead to many favorable memories. However, there is no doubt that raising kids can be expensive. Therefore, families must budget the best they can to manage their finances. A user asked an online community how much their budget went up after having their first kid. Here are the top responses:

1. Nanny

A user shared they hired a nanny for 20 hours a week. Their nanny handles the household chores and basic cleaning. Also, the nanny picks up the kids from school and tutors them. They estimate they pay their nanny $29,000 a year including a holiday bonus. Another user said they didn’t expect they’d need a night nanny, but their baby was extremely fussy. So, for six months they spent over $500 a night for overnight care.

2. Therapy

A user shared they have three kids that need therapy from a specialist. They spend about $3,000 a month on their kids.

3. Bigger or Newer Car

New parents who drive older cars often feel they need to buy a newer or safer car even if it’s not a major brand. And, upgrading from a sedan to a minivan is a big ticket item.

4. Daycare

Many users shared that daycare is their biggest expense averaging between $1,800 a month to $3,300 a month. One high-earning couple shared they spend $5,000 a month on daycare. On top of that, in many large cities, parents have to be on a wait-list, years in advance.

5. Food

In addition, a lot of users said their biggest expense was food. One user said after their child stopped nursing, their food consumption went up. They said, “Feeding one child is the equivalent of at least half of the average adult, so figure accordingly.” Another user said their toddler can eat a carton of raspberries in one sitting. And, it doesn’t help when a carton can cost close to $4 for what looks like 20 tiny pieces.

6. Extracurricular Activities

People spend money on after-school or summer programs, whether it be private music lessons, ballet, or sports. One user shared they spend about $4,000 across a bunch of weeks for a summer camp for their kids.

7. Health Insurance

Adding more dependents to your health insurance will definitely increase your cost. A user shared that their monthly insurance premiums went up a couple of hundred dollars.

8. Travel

Travel becomes more expensive when you have a bigger family. For instance, you’ll be paying for more tickets, larger rooms, luggage costs, and private tours that accommodate the kid’s “patience.”

9. Diapers

Although diapers are not necessarily expensive, those on the lower-income side may feel the pinch. A user said they kept a detailed log during their son’s first year of life and spend over $50 a month on diapers, wipes, and diaper creams. For someone with a limited and low income, this expense added up for them.

10. Cell Phones

A parent shared that their teenagers were required to have their own cell phones. The phone needed to be NFC-capable phone to allow them to get into the buildings on campus.

11. 529 Contributions

When it comes to saving up for their children’s college education, a user shared they contribute $20,000 a year toward a 529 plan. They contribute $10,000 toward a custodial account.

12. Larger House

A user shared that their biggest up-front cost with their first kid was buying a bigger house, even if that means adding at least one bedroom. They said new parents can avoid this purchase for two to three years, but eventually, they’ll want and need the space. One user said after they had their second child they decided to buy a bigger house for $700,000.