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Are you financially healthy enough to have a child?

Nearly 2/3 of Americans can't pass a basic financial literacy test

You think about making a baby, having a baby, raising that baby -- but have you thought about the cost of that baby?

According to the USDA, it costs over $230,000 to raise a child until they are 17.

You start with the crib, the high chair, the diapers -- more diapers and even more diapers -- but that is just the beginning.

Nearly two-thirds of Americans can’t pass a basic financial literacy test. And the average debt in households is over $135,000

Nerdwallet.com says only about one in 10 Americans check every financial heath box, which includes retirement savings, emergency funds and protections.

CEO Pamela Gilmour says first you need a plan. 

“What results are you looking for? That could be a number of things from getting out of credit card debt; I want to make my retirement plan better,” Gilmour told Ivanhoe 

What if a baby is in that plan? First step: nerdwallet.com says you also need to look into maternity and paternity leave to find out if you need more unpaid time.

Parents.com suggests getting a computer program such as Quicken, Moneydance or Acemoney to help you budget out your expenses.

Also, take into account the mom's needs -- such as check-ups, renatal vitamins and the delivery itself, which costs on average over $6,000.

Ultimately, you need to save.

“You really need to save between 15% and 20%. The average person is only saving 5%,” Gilmour said.

When the baby comes, be sure to take into account the expense of insurance. It costs nearly an extra $200 to $450 a month for the insurance coverage of your newborn.   


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