A look at basic baby economics

May 16th, 2011 @ 5:58pm

By Kim Vatis, NBC News

CHICAGO — What costs more? Raising a child or buying a home?

There's no doubt that a bundle of joy brings a bundle of bills. Online calculators will help you anticipate the costs from groceries to insurance to a bigger car.

"All of those things really add up, and it's something you don't think about when you are picking linens for the crib," says Sarah Tims.

Tims is a financial planner and mother of three. Just as "how to" baby books are required reading, Tims says parents need a "financial baby formula." She has a suggested five-step plan:

1. Find out what your pay will be while on maternity leave. If it's reduced, live on that lower amount while you're pregnant as a test.
   
2. Save for health care costs — higher premiums and more doctor visits."It could be something between $200 and $300 a month, depending on your premium," Tims says. "And the ‘well baby' co-pays could be anywhere between $15 to $30."
   
3. Research not only life, but disability insurance as well.
   
4. For savings, investigate dependent care tax credits for child care. It's up to 35 percent of expenses with a maximum of $3,000 per year per child.
   
5. Consider a Roth IRA for triple duty savings. Sims says you can take out contributions if you need them for living expenses or emergencies. You can use that money for college without paying a penalty and ultimately it's there for you when you turn 59 and a half and need it for retirement.

Email: kim.vatis@nbcuni.com

Spring Break 2011

A couple of my friends decided to leave town together with their kids for Spring Break.  They invited us, but I declined.  Every party has a pooper, right. I just couldn't imagine myself with my four children, two of them two-year-olds, swimming, hiking, etc. and having fun or bringing all of us back alive.  I don't think my husband would have appreciated it if I had come home with a kid or two less than what I had left with.  I am also saving my pennies for a vacation later this year, but I didn't want to be the lame-o mom that's child replies to the big, "What did you do for Spring Break?" question when they return to school with a, "I went to the library." as the most exciting thing that we did.  I'll admit, I didn't want to take the heat from my kids when their friends were all away having fun, so I thought it would go over much better if I had an exciting plan up my sleeve.  My kids are still young enough that thrills are pretty cheap, so I decided that we would go somewhere close, find a cheap hotel room and let them swim.  My mom told me about a hotel that is located in the "armpit" of our state.  I would mention the name, but I don't want to get a bunch of hate mail!  Every state seems to have one, so just imagine the armpit of your state and you will be there.  I looked at it online.  Looked pretty good to me and we ended up having hotel points for it, which made it free.  Even cheaper than I imagined!  It was about 40 minutes from our house.  We didn't spend enough on gas to keep track of and my kids only asked when we were going to be there once.  Many people take their kids to exotic, tropical locations for Spring Break.  We prefer Armpit, USA!  My kids absolutely LOVED it and ask at least once a day when we are going back.  I am quite sure we will be "vacationing" there again soon.

Bountiful Baskets

If you live in Arizona, Wyoming, Texas, Idaho, Nevada, Utah, Colorado, Oregon, or Washington you have to give this a try.  I have loved it and with produce prices increasing I love it even more.  I got everything in the basket for $15 and it's super easy.  The quality & variety are also great.  Ordering begins Monday at noon and ends Tuesday evening.  You just go online, select your pickup site, place your order and pick it up at the designated time on Saturday.  Some of the sites do go quickly.  I have discovered that if I don't place my order by 12:30 on Monday I am either out of luck or have to pick up at a different site.

www.bountifulbaskets.org