Costs of raising a child

[Anonymous]

Anonymous wrote:

Anonymous wrote:If you are low income there is financial help for some activities and sports.

+1. Maximize any assistance out there, save every penny you can save, and invest (if you have money for that) wisely

+2 Lots of activities and camps offer financial assistance. Also look at rec leagues for sports and rec centers for activities. Plus girl scouts/boy scouts.

For summers, find another mom and trade a week of childcare, so you each take one week off but get two weeks covered without paying for camps. Take them to the zoo w/ packed lunches, parks and get a slurpee or some affordable treat, public pools, etc.

I will say that kids care more about name brand clothes and items by MS or HS. It's also ok to say your kid gets 1-2 pricier items for their birthday or holidays and that's their big gift. I buy fewer clothes in general and do more laundry even though we could easily afford more. I just hate the waste because stuff goes out of style so quickly plus they outgrow it.

[Anonymous]

Anonymous wrote:How poor? I was on medicaid back in a day getting paid below minimum wage. It was de-memorializing and exhausting. The tax refund was what made my wage minimum wage.
My kid went to public schools prk4-12. He got free lunch, transportation, and aftercare. He did no activities.
I sold my little condo after 12 years and put the equity into stock market where it did 5-6x in 1-2 years. I got off medicaid and skipped middle class.
I learned all about investing, got a finance degree from local public for cheap and barely work now.
Kid is starting CC in September and he is getting a job to open a Roth for him. Got to shield the money from taxes.
All the tax credits and deductions available to him should pay for his CC this semester. He will not be on my tax return and I can't touch the 529 or he wouldn't get anything back.
Get some personal finance and tax books to read. I don't pay taxes. Well, I do, but I get them all back and then some. The money I bring home is nearly doubled by government and then I double it again in my Roth within a year.
I have a second kid, so still filing as HH for years. No need to have both of them on my tax returns. Got to maximize it all.
Second kid is cheap too. Public schools all the way, $193 a month for health insurance, and some robux here and there.

This sounds very reproducible

[Anonymous]

College is costing us $80k a year.

[Anonymous]

First, try to create at least some savings. Ideally have 2-3 months of after-tax income in that savings account. Only spend it if your car (or house if you own one) suddenly needs an expensive repair or if a big medical bill shows up unexpectedly. If you have to spend it down to cover an unexpected expense, then try to save until it is built back up.

Then, try to contribute at least enough to get any employer match in your 401(k), 403(b), or TSP retirement account -- if you have any of those as an option. Social Security only pays a tiny amount - not enough to live on.

If you don't have any of those retirement options, then contribute something each year to an IRA. Low income should mean you could do a Roth IRA which might be better choice than a traditional IRA.

For DC, try to do "no screens" as long as possible. It is better for the child and also helps eliminate expenses. When they get a phone, then only get a low cost dumb phone. That eliminates expensive data mobile phone plans.

Go post your financial questions over at Bogleheads. They should have helpful advice too.

[Anonymous]

College isn’t a must anymore the way it was before. The crushing debt just isn’t worth it.

[Anonymous]

Anonymous wrote:First, try to create at least some savings. Ideally have 2-3 months of after-tax income in that savings account. Only spend it if your car (or house if you own one) suddenly needs an expensive repair or if a big medical bill shows up unexpectedly. If you have to spend it down to cover an unexpected expense, then try to save until it is built back up.

Then, try to contribute at least enough to get any employer match in your 401(k), 403(b), or TSP retirement account -- if you have any of those as an option. Social Security only pays a tiny amount - not enough to live on.

If you don't have any of those retirement options, then contribute something each year to an IRA. Low income should mean you could do a Roth IRA which might be better choice than a traditional IRA.

For DC, try to do "no screens" as long as possible. It is better for the child and also helps eliminate expenses. When they get a phone, then only get a low cost dumb phone. That eliminates expensive data mobile phone plans.

Go post your financial questions over at Bogleheads. They should have helpful advice too.

All good tips.