Saving money when preparing for baby

[lize566]

This is a neat article I just read on MSN about how to save money when buying all that new stuff for a baby. It's pretty long, so I'm just going to post the link, but it seemed REALLY helpful so I wanted to share! Hope somebody finds it useful!

http://articles.moneycentral.msn.com/CollegeAndFamily/RaiseKids/SaveABundleOnYourNewBaby.aspx?page=1

[WBandMe]

Thanks for posting--it seems my friends are getting pregnant left and right, so I'll have to pass this along.

[SerendipityCrafts]

These are necessarily money saving tips so much as things to consider when you have a child.

I remember when money was tight (LOL it's not like it's flowing like milk and honey now but ... ) here is what I WISHED I had done ....

Sure money is tight .... it always will be but, vow to start small. Put away $5 a week for each child, to be used towards their education or future. When and if you can manage to sock a bit more away, do it. I started doing this when I separated from my ex but it would have been so much "smarter" to do it right from when they were born.

Teach your children to save. When they are old enough ... 3 - 4 isn't too young. Consider giving them an allowance (not necessarily in return for doing chores but more, so that they can learn to manage money).

Whatever the amount .... divide it into three parts (you can use jars to illustrate saving to young children).

1/3 is for immediate spending (this can be used for candy, dollar store toys etc.)
1/3 is for short term savings (perhaps they want to purchase a bike in six months to a year)
1/3 is for long term savings (this is money that they cannot touch ... it is for education, a wedding, a home etc. You can tie this back into the tip above).

My parents started all their children a whole life insurance policy. Not because they were morbid but because it costs so much less to purchase one when your child is under 18. When they are old enough to do so, they can pay for it on their own but they can also be borrow against if they need to - to purchase their first home for example.

In Canada we have registered education savings plans .... for every dollar you invest (before your child is 13), the government also pitches in a percentage. IMHO it's a "smart way" to get some "free money" for your child's education. Is there such a thing in the USA?

[WBandMe]

FH just had a seminar today about something called a 529 education savings plan:

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future college costs. 529 plans, legally known as “qualified tuition plans,” are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code.

There are two types of 529 plans: pre-paid tuition plans and college savings plans. All fifty states and the District of Columbia sponsor at least one type of 529 plan. In addition, a group of private colleges and universities sponsor a pre-paid tuition plan.

I don't know all the ins and outs of it, but it's something he wants to do.

[SerendipityCrafts]

FH just had a seminar today about something called a 529 education savings plan:

I don't know all the ins and outs of it, but it's something he wants to do.

Sounds similar to our RESPs :)

[woohoo2me]

here in Ontario (dont know if it is other provinces or territories) each month you get an extra 100 for each child up until the age of six, to be put away for education savings.


another way to save money is buy almost everything used, ask relatives to look through their htings to see if they can give you some things. some things i dont agree with gettinf used is car seats, some are good, but i think it would be best so you know where its been. they have places here in Ontario that gives out free car seats and will put them in for you to make sure they are safe, maybe look up in your area too see if you qualify.