(BPT) – Whether welcoming a newborn, adopting a child or becoming a stepparent for the first time, bringing a child into your life means big changes – and a big impact on your finances.
According to the United States Department of Agriculture, parents of children born in 2013 will spend approximately $245,000 – per child – on housing, education, food, clothing, child care and other expenses until the age of 18. With that kind of monetary commitment looming, new parents need to childproof their finances against life’s unpredictable situations and consider the potentially costly insurance implications of each stage of their child’s life.
Securing finances against the unforeseen
Americans work hard to keep their children safe – from retrofitting a home for a new baby to teaching a teenager safe driving habits and everything in between. But despite best intentions, on average, parents spend an estimated $11.5 billion annually on injuries to children according to the Centers for Disease Control and Prevention (CDC).
“Throughout a child’s life, parents and guardians can face many unexpected financial hurdles related to injuries or illness,” says Adam Hamm, National Association of Insurance Commissioners (NAIC) president and North Dakota insurance commissioner. “Parents need to educate themselves about the risks, challenges and insurance implications of raising a child to reduce injuries, save money and potentially even save a life.”