For many, from the moment a couple finds out that they are having a baby, the stress can begin. From figuring out where to hold a baby shower to coming up with that perfect name, the announcement of a new bundle of joy can bring a lot of decisions. Some of those decisions can have lasting effects on many years of not only the child’s life, but also the parents.
So, what do new parents say is their biggest financial regret? Not starting to save sooner.
We’ve written about saving for your child’s future before, specifically in our blog post regarding 529 College Plans. (http://www.mcleansteelvalley.com/blog-529-college-plans-change-with-new-tax-deal.htm)
Mike Brown of LendEDU.com reached out to us after he read our blog post on 529 plans to offer some additional information on the cost of raising a child in their first year of life and it may be surprising to some people.
According to Brown’s research, and his blog post (https://lendedu.com/blog/cost-of-newborn-baby/), the cost of raising a child is a bit over $13,000 in the first year. And, while that may seem like a large number to some, it’s also interesting to note Brown’s additional findings.
“Nineteen percent of parents said their biggest regret was not saving or contributing enough to their child's college savings,” he said. “This was the second biggest regret amongst parents, trailing only the 30 percent that wished they had contributed more to an emergency fund.”
This was a survey of recent parents and they already began regretting not saving enough for their child's college, Brown said.
“The most expensive cost for my daughter during her first year was the stroller, which was over $700. The second most expensive cost was diapers. We used disposables. Even with price matching and targeting sales, the diapers’ cost was well over $450 for the year,” said Jacqueline Gilchrist, Mother of 13-month-old daughter, Creator of MomMoneyMap.com.
Let’s be honest, it can be stressful to think about all of the things you may need to buy for your child before they are even born, so to think toward the future can be something that new parents just block out of their mind and think they will get to when they have some free time.
The trouble is, that free time may not present itself before it’s too late.
Not only is starting a financial plan for your child something that can help them immensely in the future, but it’s something that we’d be more than happy to sit down with you and work over.
Don’t wait until the time is right and don’t assume that time will come. Let’s start planning for your child’s future today.
Investors should carefully consider the investment objectives, risks, charges and expenses associated with 529 plans before investing. This and other information about 529 plans is available in the issuer's official statement and should be read carefully before investing.