I'm going to be a dad - how much should I save up?

[Alistar7]

Congrats and the best of luck in having a healthy child.

Start saving for the college/retirement fund for your child. It may seem odd to start setting money aside for their retirement but it is prudent, compound interest FTW. When the child turns 18 you can put that cash into a good program. I would choose one that allows them a one time penalty free exemption to withdraw $ for a down payment on a house.

 

[SearchMaster]

Originally posted by: pnad
Pfft, having a child had very little impact on me financially. I think the biggest 'expense' was furniture (crib etc). Diapers and formula aren't free, but don't cost $300 a week either.

Heh - when my brother-in-law had his first daughter at a young age (19) and was struggling financially, he looked at all the bills and said, "I'm spending >$600/month here - that's a Porsche!"

 

[IceBergSLiM]

Originally posted by: Mxylplyx

Originally posted by: illusion88
save up 400,000, because that is the average cost of raising a child in the US

I think this is bullshit, and yes, I have a child.

look up the definition of average. I don't think you understand what it means.

 

[IceBergSLiM]

20k-30k is a good place to start. But the best answer is save everything. there is no such thing as buying stuff for yourselves anymore.

 

[TXHokie]

Originally posted by: IcebergSlim

Originally posted by: Mxylplyx

Originally posted by: illusion88
save up 400,000, because that is the average cost of raising a child in the US

I think this is bullshit, and yes, I have a child.

look up the definition of average. I don't think you understand what it means.

My wife gave up her $40k/yr job at the time and stayed at home for past 6 years so yeah, it'll cost us way more than that (but worth every penny and more I might add).

 

[Vonkhan]

Thanks for the wishes & advice all much appreciated!

We'll start cutting back on eating out & bars. Also, we'll have to get more frugal with impulse shopping - which is a big chunk of our spending. My plans to upgrade my gaming rig will have to be postponed too ... no Crysis for me

In all, I'm looking to save about $350-$500 a month, which will be a decent start (I hope)

Again, thanks look me up for a :beer: if you stop by NYC

 

[Geekbabe]

Originally posted by: Vonkhan
Yesterday my gf found out that she was pregnant and we're thrilled about it

I'm 29 (turning 30 this June), she's 23 and we live in Brooklyn.

I have a decent full-time job with health insurance. She's works at a health spa.

We really don't have any savings, how much should we look at saving up?

Also, any advice reg. diet, stress, anything & everything for the next 9 months is appreciated

The first thing you need to sort out IMHO is if you want your child to be born to a married couple. A lot of other decisions,including fiscal ones will stem from this.

Congrats and I hope she has a smooth,easy pregnancy

 

[zebano]

Congrats and good luck. Be ready to reorder everything in your life. Saving is a great idea. As pointed out diapers and forumula are not bank breakers, but they add enough that when your car needs it's next $800 repair, that money can be hard to come by. Oh, and if she's anything like my wife, get ready for her to want to remodel the whole house.

 

[IceBergSLiM]

Originally posted by: Vonkhan
Thanks for the wishes & advice all much appreciated!

We'll start cutting back on eating out & bars. Also, we'll have to get more frugal with impulse shopping - which is a big chunk of our spending. My plans to upgrade my gaming rig will have to be postponed too ... no Crysis for me

In all, I'm looking to save about $350-$500 a month, which will be a decent start (I hope)

Again, thanks look me up for a :beer: if you stop by NYC

At a minimum. That $4500.00 will disappear rapidly. Don't forget she won't be working much probably for like 3-4 months right before and right after delivery.

 

[Geekbabe]

Your g/friend needs to cancel any vacation plans she might have had and save every holiday and vacation day towards maternity leave,you should do the same at your job.

 

[Engineer]

Originally posted by: AmpedSilence
1 millllllllion dollars **moves pinky to mouth**

but seriously, congrats! :beer:

That's not enough! :shocked:

Congrats to the OP!

(Kids are the best (well mine are...other people's...that's another story))

 

[maddogchen]

you're screwed! get a second job stat! j/k

you're gonna be spending at least $250,000 on your child before he/she reaches 18. and costs of food/diapers/clothing/child care/health care/toys costs around $30-40 a day. my coworker spends almost her whole monthly paycheck on child care/baby food/diapers alone.

 

[BoomerD]

My deepest condolences... It doesn't matter how much you save, in the end, it still won't be enough...Kids are EXPENSIVE...(not horribly so when they're little, but as they get older, the costs seem to increase exponentially) Just wait for the teenage years...money will flow from your hands like water over Niagra Falls, and it seems like there's no end in sight...but, HOPEFULLY, once they get through college, the hemorrahaging of cash should slow to a trickle...

 

[Special K]

Originally posted by: Alistar7
Congrats and the best of luck in having a healthy child.

Start saving for the college/retirement fund for your child. It may seem odd to start setting money aside for their retirement but it is prudent, compound interest FTW. When the child turns 18 you can put that cash into a good program. I would choose one that allows them a one time penalty free exemption to withdraw $ for a down payment on a house.

I don't think you should be saving for the child's retirement and college unless you have already funded your own retirement. The OP didn't specify that in his post, so I'm just making a general comment here. Your child can always take out loans for college, but you can't take out loans for your own retirement.

 

[OdiN]

$60,000-$70,000 at least....not counting college.

And I don't think this counts stuff like computers or game systems you'd eventually probably buy them, etc.

 

[Injury]

Originally posted by: Mxylplyx

Originally posted by: illusion88
save up 400,000, because that is the average cost of raising a child in the US

I think this is bullshit, and yes, I have a child.

Seems completely logical to me.

It's like saying the AVERAGE kid costs an extra $22k/yr, some kids are higher, some are lower. Seems fairly on target to me. All depends on the lifestyle you choose for your child to have.

We're talking all sorts of things here, from food, doctor's bills (co-pays add up) increased electric/water, basically a new wardrobe every year or two... granted some stages of life are much more expensive, but even "meager living" would probably add up to about $10k-12k/yr

 

[The Sauce]

I read recently that the expected average cost of college in 20 years will be around $250K. But then, of course, you have to add to that the price of wrecked cars, broken windows, alcohol, drugs, antidepressants/ADHD meds, RIAA lawsuits... Probably you should aim for about $2 mil.

 

[theprodigalrebel]

Congratulations! Train him/her well in the art of the LULZ. :beer:

 

[TruePaige]

Grats =D

 

[fbrdphreak]

Congrats

But move out of that money-sucking city and save every penny. Kids are goddamn expensive.

 

[aplefka]

Surprised at how helpful this thread is.

Congrats man. I've got no idea but I like the one idea of having your girlfriend put away her checks for the next year to see what living off a single income is like.

 

[judasmachine]

Originally posted by: Injury

Originally posted by: judasmachine
all of it. your life is no longer just yours.

Sounds kinda blunt but it's kinda true.

Not to strike fear into you or anything, but it's definitely time to reconsider every purchase you make because it's hard to tell how much a kid is going to cost. Some things you will get lucky on, (IE: Friends and family having old baby stuff that they no longer need) and other times you'll just see your paycheck burning the second you get it.

If it were me, I would set budget ASAP and try to clear out whatever debt you can in the first few months, save the last 2/3rds.

I think you're already on the right track by seeking advice from your peers. In my limited experience from family members the hardest thing is that no matter how many books you read, no matter how much advice you get, it's never enough. Kids don't come with a training manual.

The best advice I can give is that you shouldn't be afraid to seek advice from your parents and don't be afraid to say you need help. If you have a good relationship with your parents then it's fair to say they must have figured things out and can surely help you.

Congrats buddy.

Yeah that's everything I meant. I also didn't mean to sound as harsh as I did. I will say this though. A lot more of it comes to you naturally than you might think. Somewhere inside we know what to do, but when it comes to money you simply will need every penny.

 

[funkymatt]

forget savings, get as much sleep as possible NOW.

 

[imported_Baloo]

You will want to have at least $50,000 in the bank by the due date, if it's a boy. If it's a girl, shoot for $250,000. Then 20% of that figure each year until they hit their teens. IF it's a girl, at 13 yrs, double that yearly figure and maintain that until she's 21 Yrs, then drop to 1/4 ($25,000) until she marries. For boys, increase to $250,000/yr at age 16 and maintain that for the next two years to cover liability for auto accidents, petty crime, and stupid stunts. IF he reaches 18 without killing himself from some stupid stunt, kick his ass out and cut all funding.

 

[HomeBrewerDude]

You'll want to check out your health insurance... since you're not married, she probably isn't covered. I hope she has some health care... She'll need to see the docs on a reg basis, and pre-natal vitamins, plus there'll be some cost for the delivery. My wife and I were lucky as we have a very good benefits package... each of our boys cost about $35 total. My cousin was not so lucky...each of their kids ran about $2000 for delivery. So it all depends on your health care plan. I'd start there and then worry about the baby furniture and clothes later. You'll get a lot of stuff given to you and really the only furniture you need is a crib. Bassinette is really good for the first couple of months until they can start rolling around and pulling themselves into sitting positions.

Ditto geekbabe for saving vacation/sick for FMLA. You'll want to make sure you are very clear about your companys' policies. Generally, they will probably require you to use up all your sick leave and vacation first. Then they will allow you time off (Family Medical Leave Act) but probably not with pay. You'll want to start thinking about daycare options too if your gf si going to want to keep working. She may not, as infant child \\care is pretty expensive.

Good luck and Congrats!