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Little Bundles of Joy Require Big Bundles of Cash
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For more information contact:
Tanisha Warner (713) 394-3202 |
Release Date: April 25, 2007 |
There are some things money can’t buy. The joys of bringing in a new life or hearing your baby’s first words are just a couple of those priceless moments. However, raising a child is far from free. According to the Department of Agriculture, an average middle class family will spend $174,000, and well over $200,000 for upper class families, to raise a child to the age of 17.
First time parents may be shocked and a little unprepared for the financial burden that comes along with their little bundle of joy. With this in mind, consider taking a few of these proactive steps offered by Consumer Credit Counseling Services, a division of Money Management International.
Revisit your family budget. According to American Express, as a new parent you can expect to spend $5,000 during your baby’s first year. Unless you have a bundle of extra cash lying around, a budget should be the first item in planning for the new baby.
Pay down debt. Paring down existing debt will help you create a stronger financial portfolio and help you become more prepared for the long line of baby expenses. At the very least, have a low balance credit card available for emergencies.
Save as much as you can. Unexpected expenses are guaranteed to arise with a new baby. Ideally, you should have three to six months of your salary saved prior to baby’s arrival. However, a $3,000 or $4,000 cushion could go a long way if an emergency should arise, and chances are, it will.
Do the research. Research the cost and quality of childcare facilities in your area. Childcare could cost an average of $500 a month, depending on where you live. Inquire about flexible spending accounts with your employer for a tax-free advantage.
Be realistic. When shopping for your new baby, everything will be adorable and may even be available for a good price. However, the total ending price tag is what will be most important to your family’s budget and financial future. Also, keep in mind that babies grow up very quickly and will only use many of the cute, and often expensive, baby accessories for a short period of time.
Having a baby is one of life’s most precious gifts. And although the investment may grant years and years of joy and happiness, this may be one of the most expensive gifts you will ever give yourself. Being realistic and taking financially responsible steps by planning ahead for your new baby will help ensure a smooth and joyful transition into parenthood.
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Money Management International, is a non-profit community service organization that provides confidential financial guidance, counseling and debt management assistance to consumers. MMI helps consumers trim their expenses, develop a workable budget, lower their debt payments and repay debts. Services are available by phone. To visit with an MMI counselor, call toll-free 1-800-762-2271- 24 hours a day, 7 days a week. Spanish speaking counselors are available. Consumers can also learn more by visiting the MMI home page at www.moneymanagement.org.
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