You can’t save money if you have children.
1 min read


The statement “You can’t save money if you have children” is a financial fallacy because it implies that having children inevitably leads to financial stress or impossibility to save, which is not universally true. The ability to save money is contingent largely on personal financial management, budgeting skills, and prioritization. While it is undeniable that raising children involves significant expenses, these costs can be planned for and managed effectively without sacrificing the ability to save. It is essential to factor in these expenses into your overall budget, just like you’d do with any other major recurring expense.

The cost of raising children, including education, healthcare, and daily living expenses, seems overwhelming and never-ending. The media frequently highlights these costs, and we often hear stories from stressed-out parents who feel that every penny earned goes straight to their children’s expenses. This constant emphasis on the financial pressure associated with raising children can lead people to believe that saving money while having kids is an impossible task.

An effective financial strategy when you have children or are planning to have them involves practicing disciplined and strategic financial planning. This includes setting a budget, consistently following it, and allocating your resources thoughtfully. It means reducing unnecessary expenses, instilling the value of money in your children from an early age, and seeking out economical alternatives for expensive necessities. It’s also important to start saving for their future, such as college expenses, right from the start.

Further readings specific to this fallacy:

  1. “The Opposite of Spoiled: Raising Kids Who Are Grounded, Generous, and Smart About Money” by Ron Lieber. Book Link. This book provides valuable insights about raising financially smart children.

  2. “Zero Debt for College Grads: From Student Loans to Financial Freedom” by Lynnette Khalfani-Cox. Book Link. This book shares strategies on managing and eventually eliminating student loan debt.

  3. “Raising Financially Fit Kids” by Joline Godfrey. Book Link This book offers guidance on teaching financial literacy to kids.

  4. “Smart Money Smart Kids: Raising the Next Generation to Win with Money” by Dave Ramsey and Rachel Cruze. Book Link This resource offers practical advice on raising money-smart kids.

  5. “How to Save for College and Retirement at the Same Time” on CNBC. Article Link This article explores ways to save for children’s college and retirement simultaneously.