This week is Millennial Money Week on the podcast; and I am ending the week talking about what it’s like to be a Millennial parent. Joining me to discuss this is Paul Golden from the National Endowment for Financial Education (NEFE) who recently released a study in partnership with Parents Magazine about this topic.
What are we drinking?
Paul — Grey Goose martini
Shannon — Gin martini
- NEFE did a recent study with Parents Magazine about millennial-aged parents and the challenges they are facing once they have children.
- The study shows that, because of debt, millennials are delaying the “traditional” life goals previous generations had.
- It costs $304,480 to raise a child until the age of 18 – this does NOT include college.
- 51% of the survey respondents said they would trade a year of their life for greater financial security.
- Not saving enough is the #1 concern of millennial parents.
- Shannon believes there is not enough financial preparation to become parents because nobody really tells you how to prepare for that.
- As soon as you pass a pregnancy test, you need to start saving!
- Paul says he doesn’t want this study to scare people about the cost of raising a child, he wants it to get people planning for the cost of raising a child.
- Shannon says the numbers in the study are definitely scary, but remember those numbers are over 18-22 years.
- She advises to start living like you have a kid, even when you don’t actually have one yet.
- For those who already have kids, it is really important to watch your expenses and find resources to help keep you accountable.
- Shannon says with her clients she often sees that one parent emotionally spends on the children more than the other parent.
- 1 in 4 people are concerned with their partners’ spending behaviors.
- Paul says between paying for home expenses and paying for childcare expenses, saving for an emergency fund is not as common anymore.
- Shannon is not surprised that a lot of millennials are choosing not to become parents.
- She advises you to make time for your money and your finances, don’t let them spiral out of control.
- Paul says Smart About Money has a LifeValues quiz to help you understand what’s behind your financial decisions.
- You can’t expect your money situation to change if you don’t put any time and effort into changing it.
- If you are a parent right now, stay positive!
- If you are not yet a parent, do the research and get educated before you have a child!
- TAKEAWAY: Try to plan as much as you can before you make the decision to become a parent – both emotionally and financially. If you are already a parent, work with your partner or your financial professional to get a hold of your finances – not only for your future, but the future of your children as well.
Random Three Questions
- What is a bucket list item you’d like to accomplish sooner than later?
- What is one of your all-time favorite movies?
- What is your biggest financial indulgence?
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