The Ramsey Show co-hosts Ken Coleman and Jade Warshaw were bowled over and hit for six on one of their more recent episodes.
Cricket idioms aside, Kim from Detroit called into the show and gave them a big shock when she revealed that she was expecting her sixth child.
Coleman and Warshaw were nearly speechless, especially when Kim shared that her kids range from 12 years old to a baby who is not quite one yet.
The problem?
“We have no money,” Kim said.
Kim said she called the show for help figuring out how to afford a vehicle that can fit her growing family. Currently, they lease a seven-seat vehicle through her husband’s job 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 closer to $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 shut that idea down immediately.
“Here’s the deal,” he said. “There is no expansion of the house for him. He’s going to a place called a coffee shop.”
Kim’s husband earns about $75,000 a year working in customer service for an automaker. Kim brings in about $2,400 a month doing dog grooming and boarding. Their mortgage is $1,450 a month. After covering necessities, they still have about $2,000 left over each month.
So why don’t they have any savings? “DoorDash,” Kim said.
The family also carries $30,000 in consumer debt, including at least two credit cards that have gone to collections. When the hosts asked where the debt came from, Kim didn’t sugarcoat it.
“My husband spent it on garbage.“
Coleman said that the issue wasn’t income, but spending.
“You guys are making enough money,” he said. “Between his ($75,000) and, let’s call it your ($2,400 a month), you guys don’t need to be spending money on credit cards. It’s not like you need that money to live. You guys are just being ridiculously careless.”
Both hosts were firm that taking on more debt to get a new car was not an option.
“I know it’s easy to focus on, like, the micro problems, like the lease,” Warshaw said. “The biggest problem is you’ve had $2,000 of margin (in your budget) for the last five, 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 up,” she said. “What can $8,000 get you? What can $7,000 get you? And you’re going to have a beater for a while, after you get out of this lease, because that’s what you can afford.”
Coleman agreed, saying their best move was to save and buy a used vehicle outright. He added they should find a used vehicle for $5,000 and a good mechanic.
“My point is, you have to get creative and innovative when you are in this situation,” he said.
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It’s no secret that raising kids is expensive, and those costs continue to rise.
According to an ABC News report, some of the biggest expenses for families, including housing, food and child care, have all increased in recent years (2). An analysis by LendingTree estimates it now costs $29,419 a year, before tax credits or exemptions, to raise a young child (3). That’s an increase of 35.7% from 2023.
The analysis found several major cost spikes since 2023, including day care, which rose 51.8%, from $11,752 to $17,836. Food costs jumped 29.6% to $4,216, while health insurance premiums increased 25% to $3,609 a year.
A 2024 Treasury Department report notes that since 2000, housing costs have risen faster than the median household income (4). Adjusted for inflation, rents are up more than 20% and home prices have surged 65%, while inflation-adjusted median income barely increased over the same period.
LendingTree also found that the value of federal tax credits has dropped 44% since 2023.
Of course, costs vary based on where you live, your income and your lifestyle. LendingTree found Hawaii to be the most expensive state to raise a child over 18 years, at $362,891. That was followed by North Dakota at $325,158, Washington at $318,714 and Maryland at $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 can feel tougher than ever.
According to ABC News, many families fail to take full advantage of benefits like Child Tax Credit, dependent care FSAs and other deductions. Using the federal benefits finder can help you identify programs you may qualify for.
Creating a realistic budget is also critical. Building in savings allows you to create an emergency fund, which can help you avoid debt when unexpected expenses pop up.
Tracking your spending becomes even more important with a growing family. Keeping discretionary spending in check, like charging wants to credit cards or ordering frequent takeout, requires close monitoring and intentional budgeting.
Food costs are another challenge, but planning meals ahead of time and shopping with a list can make a difference. Watching for sales, buying in bulk, freezing leftovers and using coupon apps or store flyers can all help lower 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 relatives help with child care. But for families who work remotely, relocating to a lower-cost area could be worth considering.
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
The Ramsey Show (1); ABC News (2); Lending Tree (3); U.S. 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.
