PREGNANCY

Martin Millican and Laurie Hall already had a four-year-old daughter and a two-year-old son when they unexpectedly found themselves expecting. Once the Toronto couple got used to the idea, they were thrilled by the prospect of another baby. What they hadn’t realized was the impact a third child would have on their cash flow.

Their child care fees rose by about $800 a month when they opted for a nanny instead of daycare. A used van set them back another $18,000, even after the sale of their too-small Honda Civic. Finally, two bedrooms were no longer enough, so the couple took over their whole house, giving notice to the tenants who’d been helping pay their bills to the tune of $1,100 a month. “We had never really thought about the financial implications of having kids,” says Millican. “But in this case, it really was huge.”

It usually is. According to a 2004 report from the Manitoba government, it costs about $167,000 to raise a child from birth to age 18, and that does not include the approximately $44,000 for a four-year university degree (projected to rise to $74,000 by 2019). What does that mean in real terms? According to David Bach, author of The Automatic Millionaire, most couples find their expenses rise 10 to 20 percent after the birth of a child, and if one parent opts to stay home, their income drops.

Ultimately, of course, nobody decides for or against having another baby based purely on dollars and cents. But monetary issues do play a role. As Carrie Sullivan, a Barrie, Ont., mother of two, puts it: “It’s not that I want to spoil my kids with possessions. But I want to be able to give them some of the things that make life enjoyable for them, like going to sleepover camp.”

Here’s an idea of what additional costs you can expect when you have another child, as well as tips for keeping your monetary house in order.

Originally published in Today's Parent, April 2006