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Building a Family


For those of you planning on a new addition to the family, you'll have many things to consider, including important financial decisions. How much does it cost to raise a child? It will depend on a lot what you want your home and family life to look like. Most current estimates puts the number around $233,610 according to the USDA. You should start budgeting, set up savings for education, and make sure your child is taken care of under any circumstance by providing for guardians and insurance. Townsend Financial Life Management can help you plan for your family.

Here’s what some of those costs will look like:


One of the most critical steps involved in planning for a child is to set up a flexible budget. You may receive gifts from friends and relatives, but you should plan to rely on your own income. Reduce stress by setting aside enough money to cover the basics first. And, save money in advance for expenses during parental leave. We believe planning ahead can help you enjoy every precious moment.

(See the our budgeting tool for more information.)

Budget Checklist

As you put together a budget, be sure to consider the following items:

  • Medical costs for pregnancy and delivery
  • Medical costs for the baby (well-baby visits)
  • Major purchases: crib, changing table, car seat, stroller
  • Smaller purchases: baby monitor, travel bed
  • Savings for education
  • Adoption fees
  • Updating or adding insurance coverage
  • Everyday supplies: diapers, formula, wipes
  • Contingency savings for any unexpected expenses
  • Childcare

Insuring Your Family Will Be Taken Care of

A will is very important once you have a child. By naming a guardian in it, you direct who takes care of your child if both you and your spouse die while your child is a minor. Be sure to discuss this important responsibility with the individuals you plan to name, and select an alternative guardian to serve as a backup.

Other considerations include:

  •  When your child should receive his or her inheritance
  •  Whether a trust makes sense to protect the inheritance
  •  If so, who should serve as trustee, looking out for your child's best interests

(For more information consult your attorney.)

Starting and building a financial plan for you and your family is one of the most important steps you can take to help prepare for a happy and secure future. Townsend Financial Life Management is dedicated to providing great advice and support for every phase of your life and each generation of your family