As your family grows, your spending plan changes as well. There will be additional costs that vary depending upon your specific circumstances – childcare, insurance, food, clothing, etc. No matter what the situation, it’s important to consider three main areas when your family grows: changes in income, added living expenses, and event expenses.
To figure out these added costs, take time to evaluate. Asking the right questions is critical to seeing the big picture clearly. Start by making a list and answering these questions to start:
Changes in income:
- Will the job status of any family members change?
- Will anyone involved need time off from work?
- How much time will be required?
- How much paid time off will be provided?
- How much will unpaid time off total?
Added living expenses:
- How much more will be needed for basic necessities – food, clothing, shelter, transportation, etc.?
- What are the new expenses that will be created?
- What do we need to budget for monthly to cover these expenses?
Event expenses (marriage, birth, adoption, etc.):
- How much will the event cost?
- How much will we need to save to cover the cost of the event?
For a helpful tool to figure the costs of your growing family, check out “Added Costs of a Growing Family.”