Creating a Family Budget for Babies, Kids, and Teens

Bringing a baby into your family is big step for many couples.

When it comes time to grow your family, it’s important to revisit your family budget to ensure you can support your little ones throughout childhood. Commonwealth Credit Union in Kentucky can help you every (baby) step of the way, starting with a family budget template that includes the basics of budgeting for children and factoring in the costs of childcare and education.

Budgeting for Children

Your budget will change and evolve as your child moves through various life stages. Keep in mind that you’ll have to update your budget regularly as your child grows up.

  1. Budgeting for a Baby in Kentucky
    From the outside looking in, it may seem simple to budget for a baby. After all, how much can a little human really need? The reality is, when you account for diapers, wipes, clothes, furniture, formula, toys and more, you will spend almost $10k in your baby’s first year. Of course, that estimate will shift based on a variety of factors, including your location and spending preferences.

    It’s also important to consider who will care for the baby and how family income and expenses might be affected. Will you be taking maternity and/or paternity leave and returning to work afterward? If so, will you need to pay for childcare? Budgeting for childcare is essential for two working parents. Keep in mind that childcare facilities can cost $9,589 annually full-time, while full-time nannies can be at least $28,354 a year. The average cost of in-home care for your baby in Kentucky is $27,000, according to

    Your child may attend preschool in a couple years. The cost of preschool can range anywhere from a few hundred dollars a month to the equivalent of your in-state annual college tuition. If you choose an in-center care option in Kentucky, be prepared to pay an average of $8,000. The best way to prepare for childcare costs is to research options in your neighborhood and determine what you can afford.

  2. Budgeting for Kids in Kentucky
    As your child starts getting older, your budget will become a bit more comprehensive. With diapers and formula behind you, costs for items like clothing and groceries will increase. The cost of activities will also come into play. You’ll need to prepare for expenses like ballet lessons, summer camp, new soccer gear and braces. The sooner you develop your budget, the better you can anticipate the impact on your bank account.

    While after-school lessons, clubs and extracurricular activities can be costly, they can double as childcare services. Many schools also offer after-care services for working families and busy parents. If you need additional help, consider reaching out to a trustworthy neighbor, family member or friend to see if they’ll help babysit. Getting creative with childcare can help you stay budget-conscious while ensuring your child is safe and entertained.

    At this stage, you’ll also want to start thinking about higher education, if you haven’t already. If paying for your child’s college education is part of your long-term family plan, it’s essential to begin saving as early as possible.

  3. Budgeting for Teens in Kentucky
    As your child becomes slightly more independent, your budget will continue to change. Soon, your child’s budget may start to resemble your own. With teenagers come expenses like cell phones, sports equipment, new clothes and even a car. Some families may also consider investing in a private school. Be sure to factor these expenses into your monthly budget ahead of time.

    As important as it is to budget for your teen, it’s just as important to teach your child to start budgeting too. This will help your teen become financially savvy. You can start by helping your teen save for personal expenses, like a prom dress or an expensive new pair of headphones. If your child is able to get a part-time job and earn money, you can help your teen develop a simple budget. Not only will your child be able to fund a few personal expenses, he or she will be better prepared for financial independence. Consider opening a checking or savings account for your teen, so that they can learn to manage money in a safe and secure way.

Prepare Your Family Budget in Kentucky Today

Now that you have a sense of the expenditures to consider when budgeting for a baby, growing child and teen, you can begin to develop your family budget.  Commonwealth Credit Union can help you navigate the types of savings and checking accounts that will make budgeting for children a little easier. As your Kentucky-based credit union, we understand what it takes to help you reduce the financial stress of raising children so you can focus on family time. Contact us to learn more about how we can help you build you family budget.