If you’re going to have a baby, it’s easy to see that the costs far outweigh the return, at least financially. The annual cost of raising a child is about $13,000, as I’ve written before.
Expenses include housing, child care, education, transportation, food, healthcare and clothing. Then there’s all of your time spent cleaning up after them and shuttling them to school, playdates and activities. And remember that it’s time you’re not paid for.
The emotional rewards when you have a baby, of course, make the costs more than worthwhile.
An emotional incentive to save
But for anyone who wants to have a baby but is unsure they can afford it, consider the savings incentives. I’m not talking about the child tax credit of $1,000, which won’t buy you many diapers or baby clothes. I’m talking about the emotional incentive to save. Continue reading