Chatting with Madame Moneypenny: "Raising Kids Ain't Cheap": Navigating Finances in Relationships
- Interview by Daniel Bakir
- Approximate Reading Time: 4 Minutes
Enforce equitable financial management among romantic partners - Strategies partners employ to handle their financial affairs
This candid conversation with Madame Moneypenny originally appeared in the September 2023 stern archive.
Madame Moneypenny, hear you've become a mother—so, what's your take on sayings like "kids cost an arm and a leg" or "can't afford a child"? You baby-making heart tickin' or crunchin' numbers from the get-go?
Ain't no denying that kids cost a pretty penny—not that the joy of parenthood ain't priceless—but child-rearing ain't cheap. You got a new homie dependin' on you for food, clothes, and adventures. Schoolin' and drivin' lessons are just around the corner; figure in all that and the kiddo'll cost more than one million dollars before they're grown. Mind, it don't even cross your mind when you pine for wee ones, but asking, "How the hell are we gonna pay for this?" is worth the question. Mostly, it's about some solid planning and forethought.
- Greenbacks
- Madame Moneypenny
- Thrifty Parenting
Of course, moolah ain't the main thing on your mind when you're hankerin' for a little one. But it's important to flicker that rational part of your brain: "How in tarnation can we swing this?"Long story short, it's essential to have a game plan for these expenses before you bring home a bouncing bundle of joy.
Clear Communication and Regular Check-ins
- Secure regular chats about the bucks, schedule monthly powwows, juxtapose spending figures, tweak budgets, and ponder savings goals. This keeps tensions low and keeps you in the loop about how the greenbacks are divvied up.
Budgeting and Contribution Agreements
- Work together to produce a budget that incorporates the estimated cost of raising a child—comp'ny vacations, healthcare, education, and extracurricular activities included. Divvy up the bills, with contributions either equal or proportional to income to maintain a sense of fairness when wages vary significantly.
Setting Up Finances and Maintaining Autonomy
- Balance individual and shared accounts, pooling income in a joint account for common expenses while preserving personal accounts for personal spending. Implementing spending thresholds that require consensus helps keep the cash flows in check.
Assigning Financial Roles and Addressing Imbalances
- Delegating the financial nuts and bolts to one partner—acting as the household CFO (Chief Financial Officer)—can streamline management of regular child-related expenses and household bills. Sharing of responsibilities ensures both partners feel invested and responsible. Above all, beware power imbalances and create a system that balances the decision-making to prevent resentment.
Mrs. Wegelin, now that you're in the parenting game yourself, any pearls of wisdom to impart to parents-to-be?
I'd say that couples need to stay open, keep the communication lines flowing, and work together—kinda like they do in a duet. Never forget that money is just a tool for building a terrific family life.
- EC countries might consider implementing an employment policy that focuses on providing necessary support for families, as the cost of raising kids is significant and can impact personal-finance budgeting for many families.
- In navigating finances during relationships, especially when expecting a child, couples should look into setting up a budget that includes the estimated cost of raising a child, as well as clarifying financial roles and regular check-ins to ensure financial transparency and fairness.
