FLA. — As the cost of raising a small child has skyrocketed in recent years, many Americans say they can't afford any more kids.
Nearly half of parents with young children (46%) say they're having fewer kids due to financial constraints, according to a recent survey from LendingTree.
The cost of raising children has jumped dramatically in recent years, with the average annual expense increasing from about $21,000 to nearly $30,000 in just two years – a 36% increase.
77% of parents with kids under the age of 18, responded that raising kids was more expensive than they imagined.
Day care costs have been a major factor, with prices soaring more than 50% over the past two years.
The financial strain is pushing many families into debt, with two-thirds of parents reporting they've borrowed money just to make ends meet for their children.
Almost all parents surveyed agreed that having more money would make raising children easier.
But you’re not powerless in your fight against inflated costs. Here’s what LendingTree recommends you can do to keep afloat.
- Cut nonessential expenses. Pull up your bank account online and look at your transactions for the last three months. Consider what you can easily cut to save money, including streaming services, subscriptions and meal delivery services like DoorDash and Uber Eats.
- Take a hard look at your budget. Now that you’re more familiar with your spending, look at your big monthly expenses. If most of your paycheck is going to child care, look into nanny sharing or subsidized child care. If you’re blowing most of your money on food, check out the subreddit r/EatCheapandHealthy for recipe ideas.
- Get creative. Rotate streaming services on a monthly basis so you’re only paying for one at a time. Keep a stash of shelf-stable foods like pasta for when you’re tempted to pull up your favorite delivery app. Gather other neighborhood parents and take turns hosting the kids after school to save on child care.
- Ask for a raise. Work up the courage to ask your boss for a pay increase — 82% of workers got a raise when they asked. If that’s not in the cards, ask for a flexible work schedule or additional paid time off to cut back on child care expenses.
- Take on a side hustle. Almost 40% of Americans have a side hustle, and they earn $1,215 per month on average. You can make extra cash with typical side hustles like Uber or Lyft, or with at-home ventures like freelancing or testing websites. “Just be aware that a side hustle isn’t a quick fix,” says Matt Schulz, LendingTree chief consumer finance analyst. “As with any business, it takes time and effort to get off the ground, and it may take a while before you see any profits.”
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