It’s estimated that the cost of raising a child for 18 years ranges from $250,000-$1 million. Should this require a trip to see the payday loan lender? Depending on your lifestyle and cost of living, that amount will vary. So what if you are a middle-income earner and it’s hard enough paying for the daily needs of your children? What if you end up in a bind and need to make a payment on braces, register your high school student, or catch up on school clothes and supplies? Can you justify taking out a short-term payday loan to help see you along the financial road that having children puts you on?
Saving for the unforeseeable with your little darlings is the best thing you can do to ensure you have what it takes to support their many needs (and wants!). Bracing for the future is something we all say we are going to to do, but how many of us actually follow through on that? If you can get one step ahead in your finances, you may be able to avoid taking out a payday advance, and instead, paying cash for the many things that having children requires.
Does saving for the future entail a payday loan?
The first step to budgeting for a family is having an understanding of your financial situation. Knowing how much you have in have in debt and savings will help you better plan for the future while trying to keep up with the monthly expenses incurred with kids.
Second, identify a goal. For many of us the goal is to get our kids through the teen years and off to college! Of course, it’s not that simple. With some much anticipated bumps along the way, we must brace for the more tying years, financially and mentally, that come as they grow up. Purchasing a car, college tuition, and even helping with a wedding are goals that can be set when your children are young, regardless of if it seems like a million years away. A payday loan lender can help in the short-term but looking at the “big picture” is what’s important.
Lastly, figure out how to make that goal become a reality. Do you need to rearrange some things in your budget? Trim a little here or there? Determine how much time you are giving yourself to save for something in particular. If it’s college tuition, you know you have more time to save but will also be looking at a larger amount. Opening a 529 savings plan is a good way to save for college and they offer great tax breaks. Remember, there are grants, scholarships, and students loans if you can’t save for the whole amount of tuition.
It you know you are going to put braces on your child in a year and will cost $3000, then take that amount and divide it by twelve; you will need to put aside $250 per month. Make sure you know how much your insurance cover so you will be prepared to cover the rest.
It may be a little painful to your pocket book and your lifestyle but having the money set aside to afford the costs of children will give you a feeling second only to sheer joy having your children in the first place.