Raising a Child Costs More Than Ever

The cost of raising a child continues to rise, and there is no end in sight. The average middle-income family will spend over $245,000 just on basic expenses from birth to age 18, according to the latest “Cost of Raising a Child” report from the U.S. Department of Agriculture (USDA). And that doesn’t even include the cost of a college education.

There are a number of factors driving up the cost of raising a child. Housing costs have increased significantly over the past few years, as have the costs of child care and education. Healthcare costs are also on the rise, and inflation is rearing its ugly head.

Fortunately, there are some things you can do to offset the rising costs of raising a child, and with some planning and discipline, you can avoid having to research different types of personal loans just to make ends meet. Here are a few tips:

It Takes a Village: Draw on Family Support and Advice

One of the best ways to save money on child care is to rely on family and friends for support. If you have a close network of family and friends, you can ask them to watch your children while you’re at work or running errands. This can be a great way to get some free child care.

Another way to tap into your support network is to ask for advice on parenting and child care. Those who came before you have probably researched different daycares and compared the costs of essentials. This child care in Ellicott City, MD, for example, would be a great choice for parents who need support in raising their children. Experienced parents can often offer helpful tips on everything from potty training to dealing with teenage angst. 

Of course, it’s important to return the favor when your friends and family need help. Offer to watch their children when they need a break, and be there to offer advice and support when they’re struggling.

Start With a Budget, Be Mindful of Spending

Track your income and expenses so you know where your money is going. Once you have a good handle on your finances, look for ways to cut costs. For example, you might be able to save money on child care by switching to a less expensive daycare center or by sharing child care duties with another family.

You can also save money on clothes and toys by shopping at consignment stores or garage sales. And be sure to take advantage of all the free resources your community has to offer, such as library programs and parks.

Cut Back on Unnecessary Expenses

If you want to save money, it’s important to cut back on unnecessary expenses. This is true whether you’re a parent of three or an unattached twenty-something. Take a close look at your budget and ask yourself if you really need all the things you’re spending money on.

For example, do you really need the latest and greatest smartphone? Or could you get by with an older model? Do you need to buy new clothes every season, or could you make do with what you have? As a parent, you don’t have much time to binge TV shows; do you still need all six of your subscription streaming services?

By cutting back on unnecessary expenses, you can free up money to put towards the costs of raising a child.

Compare Prices

Whenever you need to buy something for yourself, your child, or anything else, be sure to compare prices and look for ways to save.

For example, you can often find great deals on clothes by shopping online or at outlet stores. And when it comes to big-ticket items like strollers and car seats, it’s worth taking the time to compare prices and find the best deal.

You can also save money by buying in bulk or taking advantage of sales. For example, you might want to stock up on diapers when they’re on sale and then store them in your basement or garage.

Take Advantage of Tax Rebates & Government Assistance

Aside from high-income parents and guardians—those making $112,500 as head of household and $150,000 for married couples—any parent or guardian can qualify for the Child Tax Credit. The credit essentially gives money back to you at tax time to help you with the costs of raising your child. In 2021, the Child Tax Credit was raised to $3,600 for each child under the age of 6 and $3,000 for each child aged 6–17.

There are many reasons to love big city life, but the cost of living can be high. If a parent needs to live in the city due to the high salaries there, the Child Tax Credit can help to offset the higher cost of living.

If you’re struggling to make ends meet, there are a number of government programs that can help. For example, the Earned Income Tax Credit (EITC) provides financial assistance to low- and moderate-income families.

There are also a number of programs that can help with the cost of child care. The Child Care and Development Block Grant (CCDBG) provides funding to states to help low-income families pay for child care. And the Head Start program provides free or low-cost early childhood education and care to low-income families.

Inflate Your Parenting

Raising a child doesn’t have to break the bank. There are a number of ways to offset the rising costs, from asking for help from family and friends to being mindful of your spending. By taking advantage of government assistance and rebates, you can also save money on taxes. With a little bit of planning, you can make sure that the rising costs of raising a child don’t impact your quality of life.