Money and a baby
Hello, my boyfriend and I are expecting our first child in December and we have been discussing how much money we should have saved up before he arrives. We heard we should have at least 6 months salary saved. Is this realistic and if so what is the main thing/things we should be investing in for our child so early?
Thank you
Terry Says
Well, I don’t want to shock you — but it costs a LOT to raise a child! In fact a new report on CNBC says: “As of 2015, American parents spend, on average, $233,610 on child costs from birth until the age of 17, not including college. This number covers everything from housing and food to child care and transportation costs.”
You are smart to start considering how you will pay these expenses, not only for the next year but far into the future. I suggest you get some budget counseling — and the easiest, free place to do that is at the nearest local office of Consumer Credit Counseling Services. Just call 800-388-2227 and they will connect you to the nearest local office. This will help you keep control over your expenses — and manage your money wisely. Start now!
And then ask your parents and grandparents to contribute to a 529 College Savings account every year, so that when the time comes you’ll have some money put away. Go to www.SavingforCollege.com to open an account to which they can make contributions.
