Kids are expensive. In fact, raising a child to age 18 can cost between $200,000 and $350,000- and that doesn’t even include additional expenses like extracurricular activities and private schooling. From small expenses like school supplies to larger costs like college and sports, everything adds up quickly. In this episode of Couchside Conversations, Modearn™ Advisors Kevin Rex and Patrice Bening discuss ways to prepare for these expenses, mitigate some costs and protect your family’s financial future.
*Here are some key takeaways from their discussion:*
• Couples should discuss childcare early on and if one of them will stay home with the children, if there are local family members who would be willing to help, and if hiring a nanny makes sense for their situation.
• Sharing resources like clothing and sporting equipment with family and friends can help mitigate some costs. Patrice says relying on her “village” and community was crucial to raising her children, as her friends helped with carpooling, rides, and hand-me-downs.
• Even after your child turns 18, you may still support them financially in certain aspects. Especially in our modern economy, many kids move back in with their parents after college or ask for help when planning their wedding, buying a home, etc.
• They stress the importance of life insurance and estate planning to protect your family’s future in case something happens to you or your partner/co-parent.
• No matter how much you plan, there are always unexpected costs and challenges in raising children. Therefore, it is important to stay flexible, have a substantial savings/emergency account, and keep intentional and honest financial discourse going with your partner.
*Keep watching towards the end to catch our “This or That” segment where Patrice and Kevin ask these rapid fire questions to each other:*
• Public or private school?
• Hire a babysitter or call the grandparents to watch the kids when it's date night?
• Club sports or community sports?
• Take your kids when you go out to eat or leave them at home?
