Starting a family can be one of the most rewarding experiences in life. It can also be one of the most costly. On average, American families spend $250,000 raising a child. That equals $13,888 per year over an eighteen-year period.

Planning on having more than one child brings the anticipated expense to half a million dollars for a family with two children and one million dollars for a family. Where does the money go?

Pregnancy – Prenatal care to delivery can create hundreds to thousands of dollars in medical deductibles or other co-payment expenses.

Baby equipment – Crib, stroller, toys, and a car seat are some of the larger items purchased, but don’t forget months of expensive baby formula, diapers and clothes.

Birthdays, Christmas, etc. – Cake, ice cream, food and gifts (plus random impulse gifts throughout the year).

Day care – In going back to work after delivery, day care expenses will be incurred.

Preschool – Depending on your choice of preschools and the number of days your child will attend, expect to spend a few thousand dollars for an enjoyable preschool experience.

Private schools – Opting for a private education for your child can cost you an average of $3,000.00 – $4,000.00 per year for elementary school. Private high schools tend to be more than double that annually.

Sports registration and camps – Registration fees, uniforms and playing equipment adds up over the years, and specialty sports camps to help your child improve his or her game are costly as well.

Car insurance – Adding a new driver under the age of twenty-five to your car insurance can spike your rates and may be compounded when paying for a new or used car for your child.

Orthodontist – An imperfect set of teeth can cost thousands of dollars above what most insurance will cover.

Medical bills – Expect to pay thousands of dollars in co-payments plus expenses not covered by your medical insurance.

Vacations – Family vacations are great but, depending on your vacation preferences, can cost tens of thousands of dollars until your child leaves home.

Class trips – Every school has them, and they cost money.

Graduations – Celebrating educational milestones with family and friends can feel like a tuition payment.

College – Perhaps the most expensive part of your child’s upbringing prepares them for an independent life.

Miscellaneous expenses – Food, clothing and miscellaneous entertainment.

Planning financially for growing your family by investing in programs that will both earn and save money for current and anticipated needs is a sound pre-requisite to starting a family.

When working with your financial planner to achieve these goals, be sure to discuss options to support your family in case there is a sudden loss or reduction of income as well. Having a solid disability and life insurance plan will help ensure that your family is provided for and in your plan.