Insuring Your Baby's Future Can be Expensive

Everyone knows that babies can be expensive.  Various internet and non-internet sources claim that it will cost over $200,000* to raise a child to age 18 (college tuition not included.)  I doubt the costs are linear, but that averages to over $11,000 per year.  Costs like diapers, food, clothing and furniture immediately come to mind, but there are plenty of hefty expenses that you might not have thought of.

How about insurance? Let's start with health insurance.  The additional cost of adding my son, Clark, to my wife's health insurance is about $250/month (plus co-pays).  That's the equivalent of a lot of diapers.  The irony is my wife works for a health insurance company.

Don't forget all the other insurances.  You may not have needed life insurance before you had a child, but it's probably a good idea now.  If you're relatively healthy and in your 30s, a decent policy should run between $30 and $50 per month for each parent (or at least each working parent).   You'll need to choose between whole or term life.  Be careful not to get too much insurance.  You never want to be worth significantly more dead than alive**.

There's also home or renter's insurance.  Before Clark was conceived, I was not that concerned about what a loss of possessions would mean.  However, the thought of him without any toys, crib or baby necessities was/is quite disturbing.  So now I need to add renter's insurance.  That's another $30 a month.  I'm also wondering if I need to increase my auto insurance policy now that he's in the car. You know, just in case.  That all adds up to a lot of "just in case money" each month.  To quote "The Homeboys" from In Living Color, "Mo money, mo money, mo money!"

The insurance industry, just like many other industries (child proofing, cord blood storage, etc.), makes a large portion of their money because of parental fear.

Besides insurance there's also the cost of a bigger house or apartment (so Shorty can have his own room).  You might need a bigger car (to accommodate a baby car seat or two).  Dads, if you can help it, please, under no circumstance drive a minivan.  (It's like handing in your man card - and, no, buying a sports car during your 40s doesn't make up for it).

Bonus:
They probably don't even out, but there are some savings from having a baby. You'll probably save money on gas by driving slower due to the precious life in the back seat - $.  You will probably go out to eat less (fellow restaurant goers are not fond of crying babies) - $$.  You will go out drinking less (you probably should) and that money really adds up - $$$.

Please share or comment on any additional unexpected cost or savings associated with your new little ones.

     - Clark's Dad


* New Sticker Price on Raising a Child, Tom Henderson, 6/10/2011, ParentDish.com
** No since giving anyone a reason to "pull your plug" at the hospital prematurely or for any "accidents" around your house. Sometimes those you'd least expect will do deplorable things for money.