The Right Way to Financially View Children

Call me a guy, tell me something is seriously wrong with my thinking, and tell me I’m totally missing the point in this but I’ve always wondered why people don’t put more thought into the financial considerations of having kids.

I’ve seen too many families fall further into debt and financial difficulty by having more and more children because they see them as something outside the normal rules of financial planning.

“So I Shouldn’t Have Children?”

I’m not saying that having children is only for the wealthy but if it’s true that most unhealthy marriages cite money as the major source of their difficulties, you have to evaluate every money decision regardless of how noble the cause.

I wrote an article for Investopedia in September that examined the costs of raising a child. By the time the child reaches 15 years of age, it costs about $15,000 annually on average. Of course, there are plenty of ways to get that number down, and we’ll examine some of them in the future but for now, let’s think of money differently than in the past.

Money has no emotion. It doesn’t consider whether an expense is noble or not. Let’s say you gave all of your money to charity. You would still have to pay your electric bill, right? A child is an 18-year contract with payments that increase each year.

Also Read: STUDY: Poverty Drains the Brain

Bottom Line

I’m not saying don’t have kids. Instead, I’m saying to have children after first considering how you will afford them. Don’t see them as a noble expense that doesn’t fall into the normal rules of financial planning. Financially protect yourself so you can financially protect your children.

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