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Should Kids Drain their Parents' Funds?

Raising a child is tied with many challenges, financial ones being among the biggest. Although the costs of parenthood have increased, household incomes are struggling to keep up the pace. Major expenditures now take a bigger slice of the budget, making money management a top priority. In such a shabby economic climate, having a child is also an important financial decision. Those who are not bothered by budgetary concerns must still avoid excessive spending. That being said, no parent wants to impede personal growth and development of a child.

Baby Steps

After a while, raising a child makes parents adept at time management, yet money remains an issue. There are many unexpected expenditures that can creep up on you when becoming a parent. For example, when a child falls ill, you do not only need medication and doctor services, but also some time off. Children also have some favorite sports or hobbies that may be expensive to fund.  Furthermore, they get bored with toys easily and grow out of their clothes quickly. To make it worse, some costs are not easy to pin down to an exact number.
Babies require a ton of things, from prams and bouncers to nappies and carriers. However, many parents are not aware that children cost even more as they grow older. They have a bigger appetite for food, social activities, sports, etc.  Then, it becomes obvious that denying your kid small treats saves money, but unless you face the big expenses, it is not worth a dime. Major areas of spending include food, clothing and housing. When these costs start kicking in, a different approach is necessary.

The Life School

Some teenagers take on part-time jobs to mitigate the impact on the household budget, while others continue to live in the parent’s nest because of high property costs and difficulty of finding an appropriate job. Another reason for this is an intimidating price tag of tertiary education. In recent decades, there has been a steady rise in the number of people going for degrees and certificates of higher education. However, the costs of studying have gone up dramatically, driving students towards loans.
In Australia, educating a child in public schools costs $63,000, while private institutions require $459,000. These figures encompass tuition, transport, clothing, and extracurricular activities. That is why parents should strive to find a flexible and efficient way of fulfilling financial obligations. School fee payment plans, for example, make their life easier and offer multiple choices when it comes to the method of disbursement. It is an investment in the kid’s future, one that should pay off in many ways. So, it is not like you are pouring money down the drain.
Even if you have to make sacrifices like delaying retirement, it is a something worth doing. Of course, one needs to find the right balance and encourage children to live within their means. Cutting the costs is always desirable, and there is a myriad of ways to do this: lowering the energy consumption, taking public transportation, eating at home, buying second hand, etc. Just do not make children pay for the lack of financial planning and management. They must be able to reach their full potential and grow up to have the best life experience they can.

At any Cost

It is estimated that the expenditures tied to parenthood have doubled in one decade. Moreover, financial responsibilities increase as children grow up, putting family budgets on thin ice. Ongoing living expenses are only one part of the financial puzzle, however. Many parents tend to overlook the spending on college and university education. In any event, you cannot afford to spend money like there is no tomorrow. But, children’s future must not become the victim of belt tightening either. Supportive and stimulating environment can do wonders for their development and future success in life.

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