Top 5 Money Mistakes New Parents Make

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Search the Internet for: “cost to raise a child in America,” and you’ll find some terrifying results – ranging from $150,000 to over $300,000. It’s enough to make one swear off procreating, which is why those who actually do want to continue the species often don’t dwell on the numbers.

There are many more ways to get money for college than to get money for retirement.

The good news is that the hard financial truths don’t have to be that hard. Here are five simple pitfalls to avoid: 

Failure to plan.“Essentially, the baby comes and it’s ‘drop everything, let’s take care of the baby,’” says Financial Advisor, Robert Avey of SGC Financial. “Usually, we’ll get the call to see someone well after they’ve had the kid and they have nothing in place. Now they want to do all sorts of things for themselves and their kids, but they don’t have a plan, priorities, or resources.” The longer you wait to get things in place, the fewer options you will have.

Delaying saving for college. If you had a baby today and planned to send her to a four-year, public, in-state college, at a five percent inflation rate, the estimated cost would be $201,108, according to the College Board’s savings calculator.

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Prioritizing college before retirement.“There are many more ways to get money for college than to get money for retirement,” warns Avey. Paying for your child’s education is a great gift, but not if the cost is dependency upon them in your golden years. “I’d rather see people save for retirement and, if they want to, to help their kids pay their student loans along the way.”

What do you think?

Top 5 Money Mistakes New Parents Make

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56 comments

  1. LIZ says:

    we got so scare with college money, we are going to try to do our best

  2. mommy nhoj says:

    Another article that agitates me. As a new immigrant, I have yet to understand so many terms! At least we are trying to discuss and work on few things. One step at a time.

  3. Layne says:

    I’m a single mom so I’m worried that money will be a little tight, but I would never skip on saving for college or retirement.

  4. denette87 says:

    The day I found out I was pregnant I went and opened a college savings account for my future child. I got a lot of strange looks when I was asked how old my child was and I told them she was due in 8 months.

  5. monette3 says:

    It’s hard to think about the future when you are young, but I think he is right about life and disability insurance.

  6. Sidrah says:

    Very helpful information!

  7. Marina says:

    Great to know these things. Definitely disability insurance is worth it.

  8. Jackie says:

    wow so much to think about… I have to look up some quotes for disability insurance

  9. EbyMom says:

    this is a good article I will definitely think about it.

  10. PrettyBoogs says:

    I think it includes the monthly money we wouls send for groceries and helping with housing. a rough estimate of what it would cost between loans and out of pocket. STILL TOO MUCH!

  11. PrettyBoogs says:

    OH gosh I didnt even think about that. the 200k plus probably 50k more. YIKES!

  12. PrettyBoogs says:

    Wow it is so much for instate 4 yr. I suppose that is including everything in the mix. It is for sure something to put a lot of thought into. I am saving money for her to put directly into an account for her when she is born to help prepare her for what she wants to do with her life. Its the least i can do to help ease some financial burden in her future.

  13. sheenaholman says:

    Its a lot to think about!

  14. Taunya says:

    I can’t even imagine what college will cost when our children are old enough to attend.

  15. That college cost is crazy! No way I can save that much by the time my child is 18.

  16. says:

    saving for their golden years is more crucial as compared to spending only on their children’s education.

  17. Courtney says:

    This will be good to know for when my baby boy comes 🙂

  18. thinkobu says:

    Very informative indeed!

  19. Thankful I knew most of this!

  20. Dina says:

    Wow I need to add some of this

  21. LenaRei says:

    Great article; very informative. I’ll have to jot those tips down as a reference.

  22. Glad to see im in the right path!

  23. Glad to know that we are on the right path.

  24. Grace says:

    it is good to plan ahead, wish we had extra money to do any of these, although my spouse has life insurance for us so that is a plus

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