A young couple decides to embark on the journey of raising a child together. Being educated on the costs, risks, stress and responsibilities that accompany the wonderful act of parenting, the couple approaches their decision cautiously and carefully. They begin setting aside money for when one will have to take off work to raise the child. They calculate the additional costs that will go along with taking care of a family of three rather than their two-person family of which they are familiar, and speak with a financial planner.
After preparing everything and getting their financial affairs in order, the couple conceives a child. They are overjoyed and when the time comes rush to the doctor for the ultrasound for a glimpse of their beautiful baby-to-be. But what do they see? They're not about to have one, or two, but three babies—the woman is pregnant with triplets! All of their careful and cautious planning for their first child has now gone out the window, as the couple feels joy for their blessing but worried by the fact of having to figure out how to financially afford raising all three children at once. How are they to proceed?
Parents can check with their accountant or other local financial adviser to see if they qualify for financial aid. If employed, parents may be able to use their employer’s “Dependent Care Account,” a type of Flexible Spending Account. In a Dependent Care Account, parents can put away up to $5,000 in pre-tax dollars for day care. And for child-care expenses parents pay with after-tax dollars, they can take the “Dependent Care Tax Credit” on their tax return.1
If parents who are employed are still in need of financial assistance for unexpected expenses, it may be helpful to consider a payday loan that can help to offset any temporary financial stress. Before going ahead an applying for such a loan, however, make sure you check with your local state laws regarding payday loans, as for example, an Ohio payday loan will have different laws than those of California or North Carolina.2
Facing the Facts
The cost of healthcare is also more expensive, as the cost for the delivery for twins is reported to be four times higher than with a single birth. In addition, because of a higher rate of disability associated with kids born as part of high-order births, especially those born prematurely, there is the additional possibility of having to manage the costs associated with caring for one or all of the children who may develop a lifelong disability.3
Costs associated with accommodating for more children include expanded living space, larger vehicle and increase in the need for hiring help in the home, as well as the possibility that the parents may lose part of their income if one of them decides to cut back on work to assist in raising the children part-time or full-time.
Minimize Costs of Childcare
Once parents fully embrace the reality of their financial situation, they can begin to plan accordingly and work to minimize the costs associated with caring for multiple children. To start, parents can try to coordinate their schedules so that one parent or the other is available to watch the children at all times. This allows for one parent to work while the other parent stays home, thus maximizing potential income while cutting outside childcare costs.4
If outside help is required, parents can try to acquire help from close friends, family, relatives or volunteers from their local city and state health departments that run free childcare clinics.1
To reduce costs associated with goods needed such as food, toys and clothing, etc., careful shopping and planning can go a long way in saving money. Finding deals, or looking to local centers for donations of food, clothing and other accessories for children can help families gain access to the necessities their children need.