Monday, April 9, 2012

Covering The Cost of Children

Raising children is the ultimate reward but it's far from a priceless experience.

Studies have shown the number of households with children is sent it drop below the number of single person and couples with no kids households. It's a major demographic shift. A range of different studies have found the typical Australian family will spend more than $500,000 bringing up two kids to the age of 21.

On average, about 23 per cent of the family income goes to raising two children. That's a big chunk of your budget. Yes, its expensive. Yes, it means adjusting your lifestyle.

But having children has always been a financial burden. The cost of kids is an easy excuse for delaying a decision to concentrate on career and enjoying the material things in life. There's nothing wrong with that if that's your choice. Just don't use the expense of children as the excuse.
The reality is you can afford to have children if you really want to. Like millions have in the past, you just make it work. It may mean a beach holiday in Australian rather than going overseas, or buying a second hand car rather than a brand new one. Lifestyle decisions definitely change but the important things in life don't have to.

The key is to start the financial planning before the family planning. This is the time to discuss whether that weekly half-carton of beer will still fit into the equation. Get used to living on a single wage. This will prepare you for parenthood on a single wage and at the same time help build a nice little nest egg.

But take it from us, the joy of having children far out weighs any financial impost.

So it's even more important to ensure your Life Insurance policies are in place so if something were to happen to you, your family would be financially secure.  

Source: The Daily Telegraph

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