Babies Are Really Dollars — Are Babies Really Dollars?

Mar 12, 2013 by


Babies Are Really Dollars — Are Babies Really Dollars?




No matter how you slice this particular pie called having children, babies are really dollars. The U.S. Department of Agriculture even agrees with me. In 2012 they put out a report in which they concluded raising a child from birth through age 17 will cost $235,000.

This dollar amount is based on the costs of the typical middle income family. Those of lesser means and those of higher means will experience different numbers. Either way, babies are really dollars even if the cost is only $100,000.

The following tips are offered in order to help you minimize the costs yet maximize the return of any and all expenditures. While most parents don’t think about life insurance for new born babies, many financial planners extoll the virtues of buying a policy on a baby.

This article isn’t intended to advise you to buy life insurance. Rather it is intended to offer ways to maximize the money you will spend. Talk to your life insurance agent about the perks and bennies of a life insurance policy on a young person.

It is no secret that almost all of us want our children to attend college. Unfortunately college costs are zooming upwards. This means if you are the type of parents who say your children will attend college, start planning before the delivery. When it comes to college, babies are really dollars and in a compounded way.

If you just had a baby and don’t have a will, get one prepared tomorrow. If you have a will, update it. Be sure you appoint a guardian. In fact, sit down with your attorney and cover all the bases. You never know what contingency will strike. Babies are really dollars but you really don’t want them wards of the government or on welfare.

Make an appointment with your CPA or tax preparer and talk about the tax savings your new addition will bring to the family. The IRS allows deductions and exemptions and credits for dependent children. You definitely want to know what they are and how to take advantage of them.

If you are first-time parents you have, hopefully, adjusted your budget by adding in the additional expenses that now will affect your other everyday expenses. Most people, for example, are surprised to learn just how much diapers all by themselves will add to the weekly grocery bill.

The one income families already know what life is like living on one income. If you are a two household income family and one of you will leave the work force to care for the baby, try living on one income well before the baby arrives. There is really no other way to check out the feasibility of living on one income if you are a two income family. Remember babies are really dollars and you want to be prepared.

All babies are cute and having a new born at home conjures up many emotions. One of those emotions will be tired. After you’ve been up for hours on end, you will be praying for a break. If any relatives or friends volunteer to baby sit, accept their offer. Even the small amount of time away from the baby caring routine is enough to recharge your batteries as well as let you enjoy some time out or by yourself. Babies are really dollars and mommy and daddy battery burners.




Not everyone has a flexible spending account through their employer. If you are lucky enough to have this plan and have signed up for it, you can use it for day care. As of this writing, you may be able to use it to pay up to $5,000 in child-care expenses a year. Babies are really dollars but they could be tax exempt (from income taxes) dollars as well. Consult with your tax specialist to learn the specifics for your situation.

OK, so babies are really dollars but we all seem to have the little bundles of love. If you are planning to have a baby, may the above advice help.


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