(InvestigateTV) — Nearly a third of Americans under 60 who are not parents told NerdWallet in a new study they don’t plan to have kids because the overall cost is too high.
Business Insider estimated the cost to care for one child in the U.S. this year will be at least $25,000.
Kim Palmer, a personal finance expert with NerdWallet, said that cost is looming large for parents and would-be parents. It’s causing people to change their minds.
“Would-be parents are both deciding not to have children and they’re also delaying having children,” Palmer said. “And one big thing that stood out is that while the overall cost of having children is really daunting, the biggest expense that stands out for people is childcare costs.”
Palmer said particularly for people who live in urban areas, childcare can cost upwards of $2,000 a month or more to take care of a baby or toddler.
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She said while there are not any easy answers, there are some steps people can take to have the families they want.
“The first thing to do is to just start saving and adjusting your budget as early as possible as soon as you know you’re expecting a baby,” she said. “Just start setting money aside because whether you’re going to be paying for childcare or scaling back work, so there’s less income. There’s going to be a need to pay for all that so saving early can make a big difference and can ease that transition into new parenthood.”
Palmer advised that before a child is born, look up local daycares online and talk to other parents near you to see what they pay. This will give people a general idea of the expense, plus a chance to make plans for that money once childcare is no longer necessary.
Parents could use that money to start saving for college in a 529 account or maybe to pay for other childhood expenses like sports fees and lessons.
They could also save more for retirement or family travel.
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