A child costs a house, they say. But is that really true? In 2018, researchers at KU Leuven university wondered whether that statement was correct. Their research (NL) found that families spend an average of 918 euros per month on children. This sum includes the direct costs of food, clothing, toys, personal care products, sports subscriptions, higher education fees, rent for student accommodation etc. 918 euros x 12 months x 21 years? That’s 231,336 euros. So yes, a (smallish) house.
"},"textLinks":[{"url":"/en/individuals/saving/how-much-does-a-child-cost","text":"How much does a child cost?"}]},{"componentType":"sectionTitle","title":"Other expenses"},{"componentType":"paragraph","richBody":{"value":"Of course, the 918-euro average masks a fair number of extremes. For a couple with 1 minor child, the costs are comparatively low: according to the study, such families spend an average of 21% of their net income on ‘child costs’. It's quite a different story for a single parent with 2 adult children: 63% of net income goes towards costs incurred for the children. Please note: these expenses don’t consider the fact that you may buy a bigger car or bigger house when you add to your family, or pay more rent for a more spacious home. The ‘cost of time’ is not included in the 918 euro average either. That’s the time that you spend with the children, and therefore can't work, for example.
"}},{"componentType":"sectionTitle","title":"6 tips for your preparation"},{"componentType":"paragraph","richBody":{"value":"1. Make sure you have an adequate savings buffer
Economists advise you to have average savings of 3 to 6 months’ net salary. That’s an average, of course. If you’re having a baby or have children, it may be desirable to increase the buffer. That way, you have a stronger financial position if an unexpected expense comes up. Consider your peace of mind as well. If you feel better with a larger buffer, it’s as well to follow your intuition.
2. Draw up a financial plan and follow a household budget
Drawing up a financial plan and following a family budget can help you to detect money problems in good time. Get a picture of your family’s income and expenses, including anticipated income and expenses. If you and/or a partner decide to work part time later on, for example, that may have a major impact on income. On the other hand, you may also have a right to additional income and tax benefits. If you make a projection, you may be able to adjust your expenses in advance if need be.
3. Apply for your maternity benefits in good time
4. Baby essentials: 1,000 or 10,000 euros?
As a (future) parent you naturally want the best for your child. However, that doesn’t necessarily mean that everything on your baby essentials list has to be brand new. A stack of onesies from the next-door neighbours, a second-hand pram or some toys from the De Kringwinkel re-use centre? Your child genuinely won't notice the difference and you can easily save thousands of euros that way. Do make sure that all the articles are disinfected and safe.
5. Change your insurance policies
On top of the basic cover from your health insurance fund, you can apply for additional health insurance. This will cover the costs of care during the birth and the time in the maternity unit. When your baby is born, you can also take out insurance for him or her. Some employers offer additional health insurance as part of your remuneration package. Check that out so as to avoid unnecessary expenses.
What if you leave the hotplates switched on or forget to turn off the tap when you go out of the kitchen? With a small child in the house, moments of inattentiveness are more likely to happen. That can have its effect. A family insurance policy can help you without costing much. There are also family insurance policies that will provide cover if your child (or another family member) causes damage to a third party.
Taking a break with the family? Before going abroad, find out how well you and your child are protected against unforeseen events. With a travel insurance policy you can make the necessary arrangements before you leave, for example cancellation and accident insurance, assistance etc.
6. Saving for children. Or investing?
You’d like to teach your child how to handle money later on, while still keeping an eye on it yourself? ING offers the right savings accounts for that.
Or you may opt for a savings account with a third party clause. In that case, you open the account in your own name, but designate the child as the beneficiary. You also decide when he or she can take control of the account. For example, when your child turns 18 or 24.
You would like potentially higher returns than from a savings account? In that case, investing may be an alternative if your investment profile allows. Although investing entails more risks than saving (your capital isn't protected), investing offers higher potential returns in the long term.
Investing is only open to adults, and from 25 euros per month. Once your son or daughter reaches the age of majority, you can give him or her the investments or the balance by a gift made through a bank or through a notary. Please note that restrictions and conditions may apply to gifts depending on the situation.
"},"textLinks":[{"url":"/en/individuals/saving/how-much-to-save-for-a-child","text":"How much to save for your child?"},{"url":"/en/individuals/saving/child-savings-accounts","text":"Why and how to save for your children?"}]},{"componentType":"highlight","title":"“From renovation budget to child budget”","richBody":{"value":"Severien and Andries from Lokeren became the proud mother and father of Otile in March 2020. In Andries, the family not only has a self-employed interior and garden designer on board, but also a mathematician. Severien laughs: “So we're very familiar with our numbers ”. She herself is an art director in a communications firm. “We’ve been following a household budget for a good 10 years now. On average, the two of us spend 2,400 euros a month, of which 1,040 euros goes towards our mortgage loan. We follow our household budget for our own peace of mind. It's a kind of compass, but we don't let it rule our lives entirely. We have to enjoy life as well.
“Now that there are three of us, we spend a bit more. But at the moment - Otile is one month young - that’s compensated by the growth bonus and the little envelopes we get. Naturally, that’ll stop in the next few months,” she says. Severien is currently receiving replacement income amounting to 75% of her salary. An added extra for Andries: on May 1 2019, paternal leave for the self-employed came into effect. That means that he, too, can break off his self-employed activity for 10 days and receive a childbirth allowance.
Investing in an extra savings buffer for the arrival of their first child didn't seem to be on the agenda straight away for Severien and Andries. “Because we bought a house in need of renovation a few years ago, we had already built up a margin. That renovation budget now does double duty, to pay for unexpected expenses for Otile,” says Andries.
Tips for parents-to-be? “Decide for yourself what you want to spend on your baby essentials. Personally, we take hand-me downs or second-hand things if at all possible. 15 euros for a new onesie of a well-known brand, or 1 euro for a onesie on Vinted? It's an easy choice for us,” she smiles. “We also made opted deliberately for washable nappies; it’s not only better for your wallet, but for the environment as well”.
"}},{"componentType":"sectionTitle","title":"Ready for the future?"},{"componentType":"paragraph","richBody":{"value":""},"textLinks":[{"url":"/en/individuals/services/get-in-touch","text":"Contact us and an ING contact will help you find solutions to suit your family situation, needs and goals"}]}]},"complementaryZone":{"flexComponents":[{"componentType":"sectionTitle","title":"Also interesting!"},{"componentType":"cards","cards":[{"componentType":"articleCard","cardType":"article","cardSize":"medium","title":"Save for your children","body":"And prepare for their future!","image":{"transformBaseUrl":"https://assets.ing.com/transform/216695a9-4f8e-4fb8-8bd7-db8312e9f9c1/youth-save-for-your-children-1920","type":"image","width":1920,"original":"https://assets.ing.com/m/4f8ad995e3756a9f/original/youth-save-for-your-children-1920.jpg","extension":"jpg"},"date":"2021-03-23","link":{"url":"/en/individuals/my-life/budget-tips/start-saving-children-youth"}},{"componentType":"productCard","cardType":"product","cardSize":"small","title":"Personal loan","intro":"Installment loan for purchases like holidays, events, or unexpected expenses.","image":{"transformBaseUrl":"https://assets.ing.com/transform/e708abd7-9868-4dcc-9d3b-36584366bbb8/Large_MS_PPT_Web-Celebration-814x360","type":"image","width":814,"original":"https://assets.ing.com/m/159f4fb75a210b0f/original/Large_MS_PPT_Web-Celebration-814x360.jpg","extension":"jpg"},"link":{"url":"/en/individuals/borrowing/personal-loan"},"promotionalLabel":{"labelType":"commercial","body":"Cashback"}},{"componentType":"articleCard","cardType":"article","cardSize":"medium","title":"5 saving tips to teach children how to save money","body":"Find out how to teach young people about savings accounts with these saving tips.","image":{"transformBaseUrl":"https://assets.ing.com/transform/1f0ac8a8-5d20-4567-94ed-cbabc5ea746c/Your-budget-header-3","type":"image","width":1920,"original":"https://assets.ing.com/m/b40c07f5f1c893/original/Your-budget-header-3.jpg","extension":"jpg"},"date":"2024-05-27","link":{"url":"/en/individuals/saving/teach-your-child-how-to-save-money"}}]}]}}}