Kids are expensive, despite some free meal deals and cheap family restaurants. According to the U.S. Department of Agriculture, the average cost of raising a child from birth to the age of 17 is $233,610 for food, shelter and basic necessities. There are a lot of things parents are tempted to buy for kids, and a lot of it is a waste of money in the long run. Here’s a look at how parents waste money on kids when they could be saving more money for retirement or their kids’ college education.
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Baby Gear
Forget new gear for each baby. Hand down what you used for baby one to baby two. If it’s your first go-around, shop consignment stores. As long as it’s safe and up to code, you can easily find a used stroller, crib, carrier, pack n’ play, high chair, and other items for less than new versions.
Related: 17 Things You Should Absolutely Never Buy on Craigslist or eBay
Brand-Name Clothes
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Kid-Marketed Products
Ever wonder how your kids can spot the “Star Wars” bandages, Spongebob bath bubbles, or Elsa’s “Frozen” toothpaste from a mile away? These products are marketed directly to them and even placed at their eye level in the stores. Why pay more for “My Little Pony” bandages when plain ones work just as well?
Related: 30 Dangerous Products That Were Popular When You Were a Kid
Bikes
What kid doesn’t love a new bike from Santa? But the truth is that just as quickly as kids outgrow clothes, they outgrow bikes, roller skates, skateboards, and the like. Buying those things new is a surefire way to waste money on your kids. Instead, look at local consignment shops, or find a bike at a local garage sale and clean it up. Your kid won’t know the difference.
Related: Buy These 24 Things Secondhand to Save Big
Electronics, Apps and Video Games
Electronics and technology are a way of life for the up-and-coming generations, and they’re not going away (even if you wish they would). While some technology is great and even essential for learning during the pandemic, proceed with caution. Apps that might start off as free almost always have a paid version plus add-ons within the app. Video games can also cost a lot and your child will either want the next best thing in a week or will tire of the game faster than you can blink. Solution: If your child wants apps and video games, have them use their own money to buy them.
Related: 18 Ways to Distract Your Kids From Technology
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Impulse Buys
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Birthday Parties
Your 3-year-old doesn’t need an extravaganza for their birthday. One celebration, cake, and a small gift will suffice. There’s also no need to schedule multiple parties, such as one at school, one with each side of the family, and a friends-only party. Also, skip the party favors (or at least buy them cheaply). They are usually junk that the kids don’t really care about anyway.
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Family Passes
In theory, it sounds like a great idea to have a family pass to the local zoo or the nearest theme park, but be realistic about how often you can make an outing happen. A good rule of thumb is that if you really think you’ll visit at least once a month, then go for it. Otherwise, pass on the family pass.
Related: 19 Expensive Mistakes to Avoid at Disney
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Pets
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Eating Out
Eating out with kids is not typically fun. Kids rarely behave in restaurant settings, and you’ll spend a small fortune for food they will barely touch. Eating out as a family, as nice as it may sound in theory, just isn’t worth it. Stay home, cook what you know your kids will eat, and reserve eating out for date nights without the kids. And if you are going to eat out with the kids, consider opting for restaurants where kids eat free.
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Backyard Entertainment
Are your kids begging for a backyard pool, a trampoline, or a basketball hoop? In some cases these purchases make sense, but you need to make sure they are truly worth the investment. Is basketball a passing hobby? Will the trampoline cause your home insurance to skyrocket and hardly get used? Will that pool be forgotten as soon as your kids decide the local swimming hole is more fun? These are just a few considerations to think about when contemplating a major purchase that could turn into a lot of wasted money.
Related: 20 Reasons Not to Put in a Backyard Pool
Brand-Name Schools
College is a great investment in your child’s future, but the price tag shouldn’t cripple your retirement or your child’s future financial health (and in some cases can be cheap or even free). Figure out what you can comfortably contribute and tell your child what the limits are. If your child still desires a brand-name school, make it clear that they will be responsible for the difference. It’s fair to also help your child pick schools that line up with their future goals and not just pick schools based on the name recognition.
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Extravagant Weddings
According to the 2019 Worldwide Global Wedding Report, it costs an average of $29,200 to get married in the United States. That figure doesn’t even cover the cost of a honeymoon. As everyone found out during the pandemic when weddings were either put on hold or made much, much smaller, a wedding can be done on a much smaller budget. It’s important for you to figure out what you can comfortably contribute and be candid about it with your child. If they want to spend beyond that, it will be their financial responsibility.
Related: 12 Things You Likely Won’t See at the Next Wedding You Attend
Keeping Up With the Joneses
Learn to let go of competitive parenting by not striving to have your kids be the best dressed on the playground or have the best electronics. Your child will learn to care less about what others have if you aren’t similarly swayed. While it can be humbling, it is also freeing financially and a great way to teach your kids about money.
Related: How Much Household Spending Has Dropped During the Pandemic
