The Ramsey Show Co-hosts Ken Coleman and Jade Warshaw were knocked down and hit for six in one of their most recent episodes.
Cricket idioms aside, Detroit’s Kim called into the show and gave them a big surprise when she revealed that she was expecting her sixth child.
Coleman and Warshaw were almost speechless, especially when Kim shared that their children range from 12 years old to a baby who is not yet one.
The problem?
“We don’t have money,” Kim said.
Kim said she called the show for help figuring out how to afford a vehicle that fits her growing family. They currently rent a seven-seat vehicle through her husband’s work for $275 a month. Since the family only has one car, Kim said she wasn’t sure what to do next, especially after learning that eight-seat vehicles cost about $700 a month.
Kim also said her family lives in a two-bedroom house and hopes to renovate the basement to add bedrooms and an office for her husband, who works from home.
Coleman dismissed that idea immediately.
“Here’s the deal,” he said. “There is no house extension for him. He will go to a place called a cafeteria.”
Kim’s husband earns about $75,000 a year working in customer service for an automaker. Kim earns about $2,400 a month caring for and boarding dogs. Your mortgage is $1,450 a month. After covering their needs, they still have about $2,000 left over each month.
So why don’t they have savings? “DoorDash,” Kim said.
The family also has $30,000 in consumer debt, including at least two credit cards that have gone into collections. When the hosts asked where the debt came from, Kim didn’t sugarcoat it.
“My husband spent it on garbage.”
Coleman said the problem was not income, but expenses.
“You guys are making enough money,” he said. “Between your ($75,000) and, let’s call it yours ($2,400 a month), you guys don’t need to spend money on credit cards. It’s not like you need that money to live. You guys are just being ridiculously careless.”
Both hosts were adamant that going into more debt to get a new car was not an option.
“I know it’s easy to focus on micro issues, like leasing,” Warshaw said. “The biggest problem is that you’ve had $2,000 of margin (in your budget) for the last five or six years that he’s been working… but you don’t have any money saved.”
Warshaw advised Kim and her husband to focus on saving and extending their current lease if possible.
“See what you can save,” he said. “What can $8,000 get you? What can $7,000 get you? And you’ll have a mixer for a while, after you get out of this lease, because that’s what you can afford.”
Coleman agreed and said the best thing they could do was save up and buy a used vehicle outright. He added that they should find a used vehicle for $5,000 and a good mechanic.
“My point is that you have to be creative and innovative when you are in this situation,” he said.
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It’s no secret that raising children is expensive, and those costs continue to rise.
According to an ABC News report, some of families’ biggest expenses, including housing, food and child care, have increased in recent years (2). An analysis by LendingTree estimates that it now costs $29,419 a year, before tax credits or breaks, to raise a young child (3). That’s an increase of 35.7% from 2023.
The analysis found several major cost increases from 2023, including daycare, which increased 51.8%, from $11,752 to $17,836. Food costs rose 29.6% to $4,216, while health insurance premiums rose 25% to $3,609 a year.
A 2024 Treasury Department report notes that since 2000, housing costs have risen faster than median household income (4). Adjusted for inflation, rents rose more than 20% and home prices rose 65%, while the inflation-adjusted median income barely increased over the same period.
LendingTree also found that the value of federal tax credits has fallen 44% since 2023.
Of course, costs vary depending on where you live, your income, and your lifestyle. LendingTree found that Hawaii is the most expensive state to raise a child over 18, at $362,891. North Dakota followed with $325,158, Washington with $318,714 and Maryland with $310,040.
Mississippi was the least expensive at $190,402 over 18 years, followed by the District of Columbia at $194,108, South Carolina at $200,958 and Georgia at $201,058.
With costs rising, keeping your household budget under control may be more difficult than ever.
According to ABC News, many families don’t take full advantage of benefits like the Child Tax Credit, dependent care FSAs and other deductions. Using the Federal Benefits Finder can help you identify programs for which you may qualify.
Creating a realistic budget is also essential. Building up savings allows you to build an emergency fund, which can help you avoid debt when unexpected expenses arise.
Tracking your expenses becomes even more important with a growing family. Keeping discretionary spending, like charging wishes on credit cards or frequently ordering takeout, under control requires close tracking and intentional budgeting.
Food costs are another challenge, but planning meals ahead of time and shopping with a list can make all the difference. Keeping an eye out for sales, buying in bulk, freezing leftovers, and using coupon apps or store flyers can help reduce your grocery bill.
And while it’s not an option for every household, reducing housing costs can have a major impact. Moving to a different area or state may not be realistic due to work or family support, especially if family members help with childcare. But for families working remotely, it might be worth considering moving to a lower-cost area.
We rely only on verified sources and credible third-party reports. For more information, see our editorial guidelines and ethics.
The Ramsey Show (1); ABC News (2); Loan Tree (3); United States Department of the Treasury (4).
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
