Young parents may need to be careful about how much they spend on their young children, as it could damage their financial strategy, and have them looking for other options.
Close to two-thirds of mothers noted that they are spending too much money on their children, according to a poll from BabyCenter.com. That level was more than 20 percent higher than when asked last year. The average amount spent by parents on children was close to $13,000 per year.
One in 10 mothers are still living with their parents when preparing for a baby in order to save money, the report explained. Close to one-third of those polled noted that they still received money from their parents to help keep their financial situation positive. Mothers reported that they would try to save approximately $4,500 for their child before its born.
“Children are expensive, but couples aren’t letting that hold them back from starting a family,” said Carmen Wong Ulrich, financial expert at BabyCenter.com. “They are exploring ways of saving that they may not have previously considered, like moving back in with their parents or accepting money from in-laws. This can be a good short-term solution for couples to get them started, but they need to make sure they are taking the necessary steps to eventually become financially independent.”
Many couples are also spending a sizable amount of money on items that will help them become pregnant, as nearly half noted that they do this, the report added. It can cost close to $500 – on average – for them to get pregnant.
Parents encourage financial education
While some young people may be struggling, situations like this could be drivers of some parents’ calls for the further financial education of young people.
More than four in five people explained that parents should be in charge of teaching their children financial topics, a report from Country Financial explained. This was much higher than the 11 percent who felt that this should occur in the classroom.
When it comes to teaching money management to young people, close to 75 percent explained this should begin before the child turns 8 years old, the report added. Another notable aspect of teaching financial literacy is when a person should get their hands on a credit card. More than half of those surveyed noted this should be between the ages of 18 and 22.