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How much does it cost to raise a child these days?

According to Baby Center web site, the cost of raising a child from baby to adulthood is $266,698.

Now that you have pulled yourself up off the floor, I want to assure you that it is OK to bring babies into the world even if you aren’t sitting on a nest egg.  It has been a few years (our youngest is 30), but Janice and I somehow managed to raise four children without spending an extra million dollars on them.  Whether you are just getting started or already have several children, this article should help you keep a rational perspective on how to afford your baby.

Have a budget.

You only have so much money, so a working budget is going to be your best friend.  Because baby will require diapers, baby food, doctor’s visits and child care, you will need to cut back your current spending to keep your budget balanced.  Whether it is eating out less, forgoing a car purchase or simplifying your vacation, you and your spouse need to be on the same page.

Don’t think baby needs a bigger house.

The biggest single expenditure ($79,164) is considered housing.  This includes all extra you might spend on housing, utilities, and home furnishings because of the baby.  If you can afford it and would like a bigger house, go ahead and get one. But don’t think that Junior will grow up needing therapy if he has to sleep in tight quarters or share a room with a sibling.   As our children were growing up, two of our sons shared a bedroom, but they never seriously damaged each other and are great friends today.

Try cloth diapers.

At around $15 each, cloth diapers sound pricey, but when compared to using 6-10 disposables every single day, you can recoup your cost in a couple of months.  cloth diapers with Velcro fasteners are much more user friendly than in the days when I used to fold and pin them around my babies.  You can buy one size fits all and also be environmentally responsible.   Try the calculator on Diaper Pin web site to learn your savings.

Feed them table scraps.

Yes, I really said that.  Janice and I didn’t like the thought of putting the prepared green paste called “peas” into baby number one’s mouth, so we bought a Baby food grinder and fed our baby (within reason) the same food we ate.  The little grinder requires no batteries and will grind vegetables, fruit and meat to a healthy consistency.  By child three our grinder was worn out, requiring another one, but we never ever bought another jar of baby food.  According to Wholesome Baby Food, our “table scraps” cost about $.03 per ounce compared to $.23 per ounce for store bought, an 87% savings.

Clothing at yard sales.

Guess what?  Babies and most toddlers do not wear their clothing out.  They outgrow it.   Because great baby clothes abound at yard sales, they cost nearly nothing.  While you are at the same sales, you can also find strollers, car seats and playpens…many in pristine condition.

Day Care.

Yes, childcare can take a big bite from your budget, but remember to budget for your childcare tax credit (late breaking news: President Obama is recommending that the credit be doubled).  Other thoughts: figure your (or hubby’s) net income after deducting child care, travel expense to work, lunches out because of job, and clothing required for job.  One of you might be better off staying home with baby, especially if you could develop a home income stream.

If possible, breast feed.

It’s not only healthier for mom and healthier for baby, but a study on Kellymom indicates a savings of between $714 and $3,164 for one year of breastfeeding when compared to formula.

Have proper life and disability insurance in place.

Ask yourself this question:  “If something happens to my spouse or me,  how will the remaining spouse be able to care for our child and continue to pay the bills?”   You probably spend more eating out in a month than life insurance and disability insurance premiums would cost, so you absolutely can’t afford to not have them.

Make retirement investing a higher priority than college savings.

You may be tempted to start a college fund right away, but don’t sacrifice your retirement investments.  Junior has lots of options to cover college expenses, such as scholarships, work  and attending community college and state universities.  What alternatives to retirement do you have?

Make a will.

I know this is not about saving money, but it is so important that I couldn’t leave it out.  If both of you die without a will, the courts will decide who cares for your child.  Is this what you want?  Make a will so you can name  the guardian that you want.   Do it today.

Concluding thoughts

Yes, your new addition will take a chunk out of your budget, but don’t get psyched out about these exorbitant claims of how much they cost.  If you want to have children, I think you should have children.  God is the giver of life and if he decides to give you a child, he will provide a way for you to care for the child. One more thing: whatever they cost, they are worth it.

Any other tips on how to raise a child for less than $266,698?

Joe Plemon, a retired engineer, financial counselor and blogger, lives in Southern Illinois with Janice, his wife of 39 years. Joe likes online Scrabble, St Louis Cardinal baseball, blues music, power naps, high school football, short term mission trips and Sunday family dinners. You can read more from Joe at Personal Finance by the Book.

The articles on this site are for entertainment purposes and should not be taken as financial advice. Please contact a financial professional for specific advice regarding your situation. Also, many of the CPF articles help us pay the bills by using affiliate relationships with Amazon, Google, eBay and others. Find out more here.

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