Financial Side of Fatherhood: A Salute to Dads Everywhere

Posted By: The Income Protection Team on 6/15/2016

Financial Side of Fatherhood: A Salute to Dads Everywhere

If fatherhood came with a price tag, what would it be? Hard to say. Some things, there’s just no counting. For example: Getting up at 2 a.m. to walk a colicky baby, then getting up three hours later to get ready for work. That’s priceless. Then again, other things are a bit more quantifiable, and shockingly expensive as you’ll see below.

  • The cost of diapers. If you use disposables, you’re spending around $600 a year. If you do it yourself with cloth, the cost on those few several diapers will run $60 to $150, with some added load to your water bill month-to-month.
  • Life insurance. It’s one of the first things a man should buy upon hearing the good news. Scott Halliwell, a certified financial planner, explained why at Bankrate: "If a parent passes away, their children still need food, clothing and shelter. If the deceased parent's income was also the funding source for college saving, replacing this should be considered, as well." The price tag? Less than you’d think: Bankrate said a 25-year-old man could pay as little as $13 a month.
  • The first bike. One day they’re toddling around asking for bites of your sandwich. The next day, you’re shopping for their first bike. (While giving them bites of your sandwich.) It’ll cost anywhere from $30 to $300; if you’ve got more than one kid, the pricier, higher-quality bike may be worth it.
  • Paycheck protection. If Dad brings home the main income or a substantial portion of it, disability insurance is a smart idea. A 35-year-old man in decent health has a 21 percent chance of not being able to go to work for three months or more due to disability. The cost of an individual disability insurance policy is typically 3% of your percent of your annual income. Here at DIonDEMAND, we’ve whittled the cost down to roughly 1%.
  • School supplies. You might want to sit down for this. TODAY said that in 2015, the cost of school supplies was $100 per kid on average, with some children’s lists totaling as much as $400. Needless to say, not all parents are willing to buy every last thing on their kid’s back-to-school list.
  • Fun. For summer activities, American families spend an average of $958 per kid. For prom, they average $919. Sheesh, is it any wonder they say it costs $200-300 thousand to raise a kid before all is said and done?
  • College. Oh, let’s not even go there.

The financial cost of fatherhood is quite clearly a pretty penny. Who’s surprised? Still, one step at a time the job gets done, and it wouldn’t get done half so easily without dads. So, Dads, this one goes to you. For your hard work, sheer tenacity and financial nerves of steel, we salute you. Happy Father’s Day!

Topic: Financial Side of Fatherhood

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