budgeting for baby

Providing For Your Child

If You Want Your Child To Turn Out Well, Spend

Twice As Much Time With Them, & Half As Much Money.

Abigail VanBuren

Costs Of Raising A ChildFirst Year Of Life

◦ $11,700 For Shelter, Food, Clothing & Child Care

To Age 18 ◦ $226,920 Average NOT IncludingPregnancy, Childbirth, Child Care, College or Inflation.

Food Costs

Monthly Food Costs for Family of 4: (Children 2-3 & 4-5 Years)

Thrifty Low Plan Moderate Liberal$548.00 $697.50 $861.20 $1067.30

Source: USDA, Jan 2012

Child Care Costs

Military Community

Child Care Center (CDC):

Monthly Fees are Based on Total Family Income

Hourly Child Care available

Financial Goals•Short-Term

• 1 month to a year• Vacation, crib, car seat, paying off credit cards, etc.

•Mid-Term• 1 year to 5 years

• Purchasing a car, remodeling, etc.

• Long-Term• 5 years +

• Buying house, saving for college/retirement, etc.

Financial Goals• Write them down!• What will it cost?

• Don’t forget inflation!• What is your timeframe?

• Set a due date• Prioritize by importance• Track your progress

Budgeting

What is a budget?

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Tips for Budgeting

• Track your spending•Cut your expenses•Review monthly•Use Financial Software• Quicken, Money, Mint.com, etc.

Budgeting For Baby

$Determine “Needs” vs. “Wants”$Consider Second-Hand Items$Cut Your Expenses, But Don’t Try To Cut Back On Food

$Update your W-4 through MyPay$Don’t Use Debt!$One Income Trial Run

What to Purchase?

Doing Without A Little Now…. Can Gain A Lot More Later On ….

• Lunch: $6/day $243,741• Smoking: $5/day $257,157•Manicures: $8/week $59,023• 6-pack a week: $20/mon $147,552

• Based upon taking the money for 30• years and investing at 9%

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Things to Avoid

Music/Book ClubsWork At Home SchemesRent-To-Own Furniture/AppliancesLarge Whole Life InsuranceExtended WarrantiesHaving the best of everything for the baby

Things to Avoid

Consumer ScamsSocial Security ScamsChild Genius ScamsModeling & Photography Scams

Things To Do Before and After Baby Arrives...

- Create or Update Your Wills (Update DD93/SGLI)

- Re-Examine Your Health & Life Insurance Needs

- Change Bad Habits Before Baby Arrives

- Emergency Fund!!!

- Get Social Security Number

Prepare for the Unexpected

•What Is an Emergency?

•How Much Should You Keep on Hand?

• Emergency Money Needs to Be Easily Accessible• Savings Account

• Money Market Accounts

KEEP AN EMERGENCY FUND

Looking Ahead to College:• Saving for your own retirement is more important than saving for college

• The sooner you start saving the better

• You don’t have to save the entire cost of four years of college

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Avoid Scams

Create Goals

Make a Budget

Enjoy Becoming a Parent!