Welcome back to Smart Money Mondays. Today we're going to talk baby talk, as in, how to budget for having a baby. To give us some important tips is Taylor Kirihara from Bank of Hawaii.
So, having a little bundle of joy sure can cost a bundle.
Children can bring so much happiness into every parent's life so fortunately, there are ways to try and budget for a baby that can help every family save.
Take care of the big things first, like making sure your baby is added to your health insurance, doctor visits and, if mom plans on going back to work, factor in the cost of child care.
So what about some money saving advice?
First, don't be shy to ask for hand me downs from friends and family. Children outgrow everything incredibly fast, from clothing to cribs to changing tables. So reach out to your network of friends and family to get items their kids don't need anymore. It can save you a lot.
Also, it's never too early to start thinking about saving for things like private school or college by opening a 529 savings plan, for tax-advantaged savings for future education costs.
That's a good head start on paying for college.
College tuition has been rising about 6% annually. At this rate, college for a child born today could cost up to $120,000 a year. That means a four year college degree could reach up to half a million dollars.
When budgeting for a new baby remember to factor in expenses for health care and child care, save some money with hand-me-down items, and start thinking about a savings plan to help pay for your child's education.