Having children will make you poor, if not poorER. (4 Articles)
~ Saturday, April 29, 2023 Blog Post ~
*Updated on Monday, October 30, 2023 — Fourth article added
Ideally, children are parents’ investments for the future. They are supposed to be the people their mothers and fathers can count on emotionally, psychologically, and even financially during their old age.
However, for the poor and uneducated segment of the society who are not financially literate, having children, especially at a young age, can leave them impoverished.
Having more of these children can make them poorER. After all, considering the unbridled inflation rise, inevitable recession and economic crises, the cost of living gets more expensive.
In the 1999 drama film “Angela’s Ashes,” which was based on the 1996 memoir by Irish-American writer and teacher Frank McCourt, the author and main character remarked about his Aunt Aggie:
Compared to Mam, she had everything, and she didn’t have any kids to keep her poor.
Thus, it is best to be practical. Raising children costs a lot and it is not for everyone. It can be a problem for the uneducated, financially illiterate, financially unprepared, and financially challenged people.
References:
https://www.quora.com/Does-having-kids-make-you-poor
https://www.springfieldspringfield.co.uk/movie_script.php?movie=angelas-ashes
Article #2: 20 financial factors to consider before having a baby (From Espresso)
by Kim Mannix, April 29, 2023
Maybe that “someday I want to start a family” moment is here, and all you can think about is bringing a baby into your life. It’s an exciting decision, but also one that should come with serious thought. North Americans face a variety of financial challenges and can access different parental benefits depending on where they live. Let’s take a look at 20 financial factors to consider before your new addition arrives.
1) Your current debt
There’s no question that raising a child is expensive, which means your current financial stability and debt situation is definitely something to consider. Existing debt will make it harder to access money when you need it, like outfitting your new addition with necessities, such as diapers and a car seat, or helping to pay the bills if you go from a double-income to a single-income home. That said, debt shouldn’t be the sole determinant if you want to have a child. With a focused but flexible financial plan, the benefits of expanding your family will be worth delaying your debt repayment a little longer.
2) Maternity or parental benefits
Depending on where you live and your employer, you may be entitled to paid maternity and/or parental leave, which could make your first days at home with your child more financially viable. The United States is one of only a few countries in the world that doesn’t have a government-supported maternity plan, but some companies do offer paid leave to their employees. Canada offers both federal and provincial benefits, but they are still only a portion of your regular earnings, so most parents should prepare to have less money coming in.
3) Childcare costs
If you plan to return to work after your child is born, you need to consider the cost of childcare, which varies depending on whether you’re looking for private care or a regulated daycare centre, and where you live. In Canada, depending on the province, monthly childcare costs range from C$181 to C$1,986. According to a 2022 survey, the average annual childcare price tag in the US is $14,760, with 59 per cent of respondents noting they struggle to pay for it.
4) Life insurance
Thinking about the consequences of you or your partner dying is probably the furthest thing from your mind when you’re getting excited about expanding your family, but purchasing life insurance is an important part of your financial preparation. A 2021 survey found that 42 per cent of American households would have difficulty covering their daily expenses if a wage-contributing partner died suddenly. It also makes financial sense to purchase life insurance when you’re younger and often healthier, which means you can secure a cheaper rate.
5) Do you have a will?
There are many reasons to make a will over and above dividing your financial assets, including naming a guardian for your children in the event of your death and assigning an adult to be the executor of your estate. You don’t need to pay a lawyer to make a legally binding will; however, many people prefer this to make it less complicated and to ensure it’s done properly.
6) Emergency savings
Even those without kids should have money set aside in case of a life emergency, but it becomes even more important when you have dependents to take care of. Ideally, an emergency fund should be able to cover between two and six months of living expenses, which includes enough for rent/mortgage, food and utility costs. Would-be parents can top up their emergency accounts by requesting cash instead of “stuff” for baby shower gifts and allocating any tax refunds to be saved for this purpose.
7) Can family or friends help out?
In addition to their moral and emotional support, your extended network of family and friends might be willing to help out with finances for your growing family. Your loved ones could provide your child with money at birthdays or holidays, contribute to education funds, or assist with childcare. In recent years, more grandparents have been caring for their grandchildren, which can reduce daycare costs. It should, however, be noted that you shouldn’t take for granted that the caregiving duties of family and friends will automatically come for free.
8) Health insurance and unexpected health fees
In Canada, labour, delivery and other healthcare for both adults and children is publicly funded under the government’s Medicare system. Depending on where you are in Canada, there could be extra hospital costs during labour and delivery if you want a private hospital room or other things not normally covered. According to Forbes, 2023 estimates show that pregnancy, delivery and postpartum care cost an average of $18,865 in the United States, so health insurance is vital in making it an affordable experience.
9) Cost of diapers
Whether you choose cloth or disposables, the cost of diapering a baby, who will use an estimated 6,000 diapers in their first two years of life, is expensive. In the US, disposable diapers will cost, on average, $70 per month, while in Canada that cost is estimated at C$42.70 per month. Shopping at bulk retailers or finding discount diaper subscription services can help to minimize these costs.
10) Feeding your child
Breastfeeding is, logically, cheaper than formula-feeding a baby, but it can come with other financial considerations, such as breast pumps and ensuring that the mother is well nourished. In addition, it just isn’t possible or practical for every family or situation. Formula costs can vary greatly, depending on how much your baby requires and what brand you use, but Canadian prices show parents could be paying anywhere from C$60 to C$300 per month. One American organization estimates formula feeding will cost between $50 and $100 in the first month, and increase as the baby grows.
11) Where you’ll live
Kids need a safe, stable place to live, which doesn’t mean it has to be a mansion. However, making sure you have enough money to cover rent, or a down payment and enough cash flow to pay a mortgage if you’re hoping to own a home, is important. It might also be more difficult to qualify for a mortgage while you’re on parental leave and making less money. If you’re hoping to buy a home, you’ll need a concrete plan to budget and save.
12) Will you need a bigger vehicle?
Babies are little, but their gear — diaper bags, car seats, strollers, pack ’n plays — take up a lot of space. You might need to spend a considerable amount of money to buy a bigger, family-friendly SUV or minivan. Investing in something reliable, so you don’t break down with baby in tow, and something that doesn’t cost a fortune to fuel, are also important factors to keep in mind.
13) Hiring a doula
Many expectant parents hire a doula or labour companion to help cope with the stress and pain of delivery, or to help out after the baby is born. In the United States, doula fees vary based on where you live and what services you want, but generally cost between $800 and $2,500. In Canada, doulas that provide services before, during and after delivery generally cost between C$600 and C$1,000.
14) Fertility or adoption costs
Not everyone is able to conceive without medical help from fertility treatments. Others might choose to adopt or use a surrogate. All these options can come with big price tags. According to 2023 figures, in vitro fertilization can cost up to $30,000 per cycle in the United States, and up to C$11,100 in Canada, though some provinces do offer financial assistance to those trying to become pregnant. Surrogacy and international adoption can also be expensive, which means your finances may be a determining factor in what path you take.
15) Family budgeting
Many couples don’t pay much attention to how much they’re spending or saving, as long as the bills are getting paid. However, creating a solid budget before you have kids can make it much easier to save and less burdensome on your wallet once they arrive. Once you have an understanding of how you’re currently spending your money, you can learn to better allocate. Experts recommend a 50/30/20 budget, where 50 per cent of your current income goes toward essentials such as housing, food, insurance and transportation. An additional 30 per cent can be used on fun things like travel and dining out, with the remaining 20 per cent set aside for savings and debt repayment.
16) One more when you travel
If you like to travel, keep in mind that children add considerable expenses to those fun weekend getaways or dream vacations. Fortunately, there is plenty of advice out there from parents who have experience planning budget-friendly trips. Factors to consider when you’re breaking down travel costs include purchasing or renting travel gear for kids, finding child-friendly hotels, renting vehicles and paying airline fees, such as additional seats for non-infant children and extra bags.
17) Government benefits
Does your government offer child benefits that could make the monthly costs of raising a child more affordable? In Canada, there are several payments available to eligible families distributed by the federal government, including the Canada Child Benefit and Canada Dental Benefit, as well as benefits paid by provincial programs. There are also several national and state-specific financial programs to benefit American parents, so it’s a good idea to look into what’s available in your area.
18) Clothing
The Babycenter website estimates that clothing a baby can cost as much as C$59 per month due to the fact that kids grow out of their outfits extremely quickly. Fortunately, friends and family often gift clothes to expectant parents, and garage sales, thrift stores or online marketplaces are perfect for picking up gently used items at a low cost. Taking advantage of sales, or buying end-of-season bargains in bigger sizes for the following year, are also smart ways to keep more money in your pocket.
19) Extracurricular activities
Your newborn isn’t going to be playing hockey or enrolling in music classes, but most parents see the benefit in trying to enrich their kids through activities, which can be expensive. A 2019 American study found that about two-thirds of those parents surveyed have gone into debt to fund their children’s extracurricular activities. A 2016 Canadian report showed that 55 per cent of families felt financially burdened by the cost of their children’s after-school hobbies. If your budget doesn’t allow for private lessons or elite sports activities, consider enrolling in local recreation programs and activities that are generally less expensive, such as swimming lessons or soccer.
20) College tuition
Your baby hasn’t even been born yet, so do you really have to start worrying about paying for university or college tuition? Experts say yes. College and university tuition tend to increase every year, which means the sooner you start to save, the more money you’ll have when the time comes. In 2021, the average cost per year for an in-state, public, four-year school in the US was $26,820 and $54,880 at a private university. In Canada, 2022 statistics show the average cost of a four-year university degree was C$96,004 for students who live on campus, and C$48,074 for those who live at home.
Source:
Article #3: Excerpts from “20 good reasons not to have children” (From MSN) — Economic and Financial Perspective
by Alicia Delay, March 2023
- Kids cost a lot of money.
Raising kids isn’t cheap, especially in our modern, developed world. For many, the high price tag of having a baby is a major deterrent. According to MarketWatch, “As of 2015, American parents spend, on average, $233,610 on child costs from birth until the age of 17, not including college.”
2. Kids can hurt your earning power.
It’s unfair, but it’s true: having kids can negatively affect parents’ — especially women’s — salaries. According to the U.S. Census Bureau as reported in Today’s Parent, women who have children between the ages of 25 and 35 are most affected by the gender wage gap. Why? Because young children and young careers are both highly demanding.
3. Kids’ education costs a fortune.
If you want your kids to succeed in life, you’ll likely want them to go to a good school and off to college. Be prepared to spend a lot of money to make that happen. In the United States, the average cost of private school is $12,218 per year. The average total cost of public college per year in the U.S. is $25,290 (in-state) and $40,940 (out-of-state). The average total cost of private college per year in the U.S. is $50,900. Start saving!
4. Kids don’t move out these days.
Think your parental duties end when your kids turn 18? Think again! With the high cost of living, an increasing number of young people are opting to live with their parents well into their 20s and 30s.
Source:
https://www.msn.com/en-ph/news/other/20-good-reasons-not-to-have-children/ss-AA19kph1
Article #4: Limerick sheds a tear as Angela Ashes Museum announces closure (From Ilovelimerick.ie)
By Richard Lynch, September 27, 2019
Angela Ashes museum announces closure — Una Heaton Conor McCourt with his father Malachy and children Cole and Gus Picture: Michael Cowhey
Frank McCourt Museum will close its doors on October 30 because of the rent, rates and insurance.
The museum, located on Harstonge Street, was established in 2011 by the artist Una Heaton who announced the closure news on the social media.
Una mentioned that she can not afford the rent, insurance and other things she gave it all she had to the McCourt family.
The Frank McCourt Museum is a museum dedicated to the author Frank McCourt who won a Pulitzer Prize for his book Angela’s Ashes, a tragicomic memoir of the misery and squalor of his childhood.
This Tudor-style building was formerly known as the Leamy School, the former school of Frank and his brother Malachy. The museum has a large selection of Angela’s Ashes memorabilia and has recreated the McCourt home as described in the book using period pieces and props from Angela’s Ashes motion picture.
The closing news was posted on their social media page yesterday and already received thousands of messages, most saying that this is sad news and expressing gratitude for what Una did for the museum.
“We all very proud of what Una achieved I am so sad and everyone who stood behind Una to support the museum. All the very best to you all in everything going forward” the post read while reminding visitors that “our doors will be open for another month to welcome our final visitors.”
The attraction was critically acclaimed, ranking number two of museums to visit in Limerick and number six of things to do in Limerick City on TripAdvisor.
It offered walking tours of Limerick inspired by McCourt’s upbringing, which was brought to international prominence with the seminal novel Angela’s Ashes and the 1999 Alan Parker film.
At the entrance to the museum, the visitor passes a bronze bust on a plinth of the late Dr Frank McCourt. Wall murals depict the young Frank in uniform cycling to work.
A collection of memorabilia is seen in display cases. Items, such as school books of the period and old photos, were all donated by former pupils of Leamy School.
For more information click here.
For more stories on Frank McCourt Museum click here.
Source:
https://www.ilovelimerick.ie/angela-ashes-museum-announces-closure/
