Children Are Priceless, Raising Them Is Expensive

Ask any parent and I'm sure they'll agree, children are priceless. As a parent myself, I know the joy brought to me by each of my children. But along with each bundle of joy comes a list of bills and expenses. The experts agree, raising a baby to adulthood can cost upwards of $10,000 annually!

If you're a family on a budget, it can be daunting to think of starting a family, or adding to your growing family. Before you give up on your hopes for your growing brood, let's look at some ways to trim expenses.

Housing: Housing is the single biggest expense of raising children. While every parents dreams of giving their child their own room, in some cases that's just not financially feasible. Your child will grow into a safe and secure child, regardless of whether they have to share a room with their siblings.

Other tips:

- Consider refinancing when the rate is more than a percentage point below your current mortgage rate.

- Challenge your property tax bill if you think it's too high.

- Make your home as energy efficient as you can.

Food: Food accounts for the next largest overall expense as anyone with teenage boys in their household will easily agree. While it's difficult to cutback on an essential expense, there are a few things you can do. Set limits on the more discretionary forms of food spending. Tell your children they can spend no more than $10 a week on fast food (McDonalds, junk food and soda). Or eliminate junk food from their diet all together.

Consider joining a warehouse club such as Costco, BJ's or Sam's Club. They're not suited to everyday shopping, but they let you stock up on certain items in quantity, often at substantial savings.

Clothing: Anyone with a teenage daughter knows that clothing costs can increase significantly as the years go buy. Why not borrow a tip from the newborn and toddler years and save and share clothes amongst family and friends. Does your child have an older cousin with hand-me-downs or a girlfriend who has had a growth spurt and outgrown the pair of jeans your child always had her eye on?

Other tips: Buy neutral-colored clothing that can be shared easily among siblings, regardless of gender. Shop sales, and shop at the end of season, so you're not paying a premium for your children's clothes. And once your child is old enough to start generating income, make it clear to them that if they absolutely must have a Lululemon sweater or designer jeans, they'll have to cough up at least part of the cost, if not all of it. You'll be teaching them a valuable lesson in budgetting and saving if you do.