How to Avoid Debt While Raising Your Children

Ask any parent you know and they will tell you that it. s not cheap to raise a child. In fact, government studies have shown that on average it takes well over $150,000 to rear a child until the age of 17. This is a huge amount of money on its own, but just imagine multiplying this figure by 2 or 3 children. A failure to prepare for child related expenses is a sure way to end up accumulating large levels of debt.

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• Examine housing alternatives. One option is to move into more affordable housing. Another alternative is to resist the urge to move into a larger house when Junior comes along.
• Buy in bulk. This works especially well for food related purchases and saves a significant amount of money. Take the food and separate them into individual size portions until use. Many people make a large meal (or meals) and then freeze several portions for later use. This ends up saving time as well as money.
• Buy children. s items second hand. There are a multitude of outlets to purchase quality used children. s clothes and toys. Check out your local garage sales, consignment shops, and mom to mom resale sales. Many of the items are in near perfect condition and you can eliminate a big portion of clothes related debt.
• Make sure your children have adequate insurance. This is a big expenditure but it is critical for preventing debt. Proper insurance will prevent exorbitant out of pocket expenses in the event of a medical emergency.
• Create a savings plan. Start saving as early as possible (before they are born is ideal). This will create a pool of funds to be used for child related expenses. A separate account should be established for educational costs.
• Creative babysitting. Find people (friends, neighbors or relatives) to trade babysitting with. Agree to watch their kids at no cost if they will watch yours.

There is no way to avoid the fact that raising children is an expensive endeavor. However, it is possible to have a family without going into debt. These two objectives are not mutually exclusive. A good amount of planning and financial discipline can go a long way.

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About the author:

Mark Carney is a professional consultant with First American Debt Consolidation and Loans, a debt consolidation service specializing in financial education, credit counseling, and debt management services nationwide.