ORLANDO, Fla. (Ivanhoe Newswire) — You think about making a baby, having a baby, raising that baby…but have you thought about the cost of that baby? Are you financially healthy?
Nearly two-thirds of Americans can’t pass a basic financial literacy test. And the average debt in households is over 135 thousand dollars.
You’ve got the crib, the high chair, the diapers…more diapers and even more diapers … but that is just the beginning! According to the u-s-d-a it costs over 230 thousand dollars to raise a child until they are 17. But nerd wallet dot-com says only about one in ten Americans check every financial heath box, which includes retirement savings, emergency funds and protections. CEO Pamela Gilmour says first you need a plan.
“What results are you looking for? That could be a number of things from getting out of credit card debt; I want to make my retirement plan better,” Gilmour told Ivanhoe
If a baby is in that plan? First step: nerdwallet.com says you also need to look into maternity and paternity leave to find out if you need more unpaid time. Parents.com suggests getting a computer program such as Quicken, Moneydance or Acemoney to help you budget out your expenses. Also take into account your spouse’s needs such as check-ups. Prenatal vitamins and the delivery itself which costs on average over six thousand dollars. But ultimately save!
“You really need to save between 15 and 20 percent. The average person is only saving five percent,” Gilmour says
Getting you, and your bank account, ready for your new arrival.
When the baby comes be sure to take into account the expense of insurance. It costs nearly an extra 200 to 450 dollars a month for the insurance coverage of your newborn.
Sources: https://www.businesswire.com/news/home/20190402005161/en/6-Personal-Finance-Trends-Worry-Americans
https://www.haveanicebank.com/blog/8-steps-to-living-a-financially-healthy-life/ https://www.thebalance.com/how-much-should-i-have-in-my-emergency-fund-2388353https://www.nerdwallet.com/blog/banking/savings/life-build-emergency-fund/#emergencyfund
Contributor(s) to this news report include: Nia Correa, Writer and Robert Walko, Editor.
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