• Diapers are a big expense when you have a baby at home, but the cost doesn’t compare with childcare.
• It now costs more to send an infant to daycare for a year than a year of in-state college tuition (Source if you choose to use stat: Care.com)
• You may be able to save on childcare by asking family members if they can help out, even for a few days a week. Many daycares offer two and three-day per week options.
• Can you and your spouse shift your work schedules so you don’t need full-day care?
• A little creativity may help parents bring down the cost.
Children: Extracurricular Activities
• Everyone wants their child to be well-rounded, but extracurriculars can add up quickly.
• A recent survey showed many parents are sidelining their own retirement plans because of the high price of competitive sports. (Source: T.D. Ameritrade.)
• And it doesn’t stop at sports; often times there are participation fees and supplies for art programs or music lessons.
• Parents need to prioritize saving for retirement over their kids’ activities. They can look into enrolling their children in the same activities on a level that’s less competitive – and less expensive.
Teens: Car Insurance
• Parents will spend more on their child between the ages of 15 to 17 than they did from birth to the age of 2. (Source: USDA)
• One of the biggest expenses will come when teens get their driver’s license.
• The average car insurance premium will increase 80% by adding a new and young driver to the policy. (Source: NBC News )
• To help soften the blow, ask your insurance agent if they offer a good grades discount. For every semester or trimester that your student earns a “B” average, a 3.0 average or is on the honor roll, you decrease their rate and ultimately you decrease your payment.
• It’s a great incentive tool too. No “B’s”! No Keys!
• A college education is more expensive than ever, and parents are footing a big bill to pay for it!
• Students can help out by scouring for scholarships.
• There are billions of dollars in scholarships out there, and you don’t need straight A’s to get them!
• There are scholarships for all sorts of things, like being left handed, for musical abilities, even for some of your hobbies. (Source: Lend Edu)
• Students can also help by getting a job on campus and putting money toward books, rent or tuition.
Protect Your Savings
• Young adults are ruining their parents’ retirement!
• 40% of Millennials are getting financial help from their parents for expenses like rent, car payments, groceries and utilities. (Source: NY Times)
• Not to mention, almost 20% of millennials are getting help from their parents paying their phone bills. How much are parents paying? It depends on who you ask!
• Adult children said they get $260 a year, but parents say the number is actually closer to $550. (Source: TDAmeritrade)
• As you put money into your 401(k), remember not to touch it – whether it’s for your kids, or if you’re tempted to take out a loan for another reason.
• Look for ways to help your family that don’t involve money, like helping them write a resume or set a budget for themselves.