How can you tell if you’re truly “ready” to become a parent? Is there a definitive way to know?
Although emotional, physical and lifestyle elements play big roles, breaking down the expenses of bringing up a baby can bring you closer to an answer.
From a money standpoint, delaying parenthood until your 30s — when you’re more established in your career and financially steadier — often feels like the sensible route. Still, life doesn’t always follow the neatest timeline.
Learnvest examined several key child-related expenses, using two hypothetical couples to compare how welcoming a child at 26 versus 36 might influence their finances.
Child Care Expenses
According to a recent Child Care Aware report, you and your partner could expect to allocate between 7% and 16% of combined earnings toward child care. That seems to favor waiting until you earn more; a higher paycheck makes these costs easier to manage in your budget.
If your goal is to avoid child care fees entirely, you may be in a better position later in life to have one parent stay home. By then you’ll likely have saved a nest egg, and dropping to a single income hurts less when that income is still fairly robust.
Younger couples, on the other hand, often benefit from complimentary child care provided by relatives and friends. Grandparents remain nearly as popular a source of care as daycares or preschools, according to the same study.
Having children earlier usually means your parents are younger, too — and more inclined and physically able to handle a toddler’s energy. Your peers may also be more available to lend a hand before they have busy family lives of their own.
How a Baby Affects Your Retirement Savings
In your 20s you’re likely operating on a tighter budget compared with a decade later. Your retirement account may not be off to a strong start, and adding a baby into the picture can squeeze finances further.
Waiting until later gives you and your partner a longer head start to build retirement savings before expanding your family.
Even if you stop contributing to retirement after welcoming a child in your 30s, you could still be well-positioned for retirement. Starting sooner typically means more years for contributions to grow and to benefit from compound interest.
So When Is the Ideal Time to Have a Baby?
While child care costs push toward having kids younger, retirement planning arguably supports waiting.
We usually expect a 36-year-old couple to be further along in their careers, earning more, carrying less consumer debt, and being wiser about saving and planning financially.
But what about tax advantages? College expenses down the road? The decision isn’t always black and white.
So… when will you be ready? To explore how your financial picture can help answer that question, check out the full piece at Learnvest. You may also find helpful tips on preparing for baby as you plan.
Your Turn: How does your financial standing influence when you intend to start a family?
Erin Miles is a staff writer at Savinly. She covers topics on money, careers, family life and relationships for blogs and books, and occasionally contributes to outlets people read and share.
