Gays, children and money?
More and more gay couples want children. Data shows that raising a child costs more than $250,000 – and that’s just until the age of 18! So what can we do to have children and still be successful in life with money? How can gays plan and teach children about money?
Hear Andy’s tips on how to financially prepare for raising children
Achieve financial freedom while raising children
Andy Hill is the blogger, podcaster and personal finance expert behind Marriage, Kids & Money, a platform dedicated to helping young families achieve financial success and build generational wealth. Andy and his wife Nicole paid off their $200,000 mortgage, acquired a net worth of $1 million, and started their own business, all with two young children in tow. In this episode of Queer Money®Andy joins us to discuss what parents can do to budget for the birth of a new baby and share some of the expenses the child wasn’t prepared for. He explains what he does to help his children learn about financial independence and encourages us to include our children in conversations about money and teach them to be grateful for what they have. Listen in to understand how the Hills paid off their mortgage in five short years, and learn from Andy how to learn to speak your partner’s language when it comes to money!
Topics covered regarding the cost of raising children
What parents need to do to prepare financially for the birth of their baby
- Open communication with your partner about what is important
- Adjust the budget to accommodate a major shift in priorities
What resources regarding expenses are available to expectant parents?
- Books like What to expect when you expect it
- Talk to other parents you trust to find out what worked for them
The expenses for the children that Andy wasn’t prepared for
- Diapers
- College (in-state tuition = $200,000)
How Andy and his partner fit college into their budget
- Put $10,000 into 529 when daughter was born
- Set aside a certain amount each month
What Andy is doing to help his children learn about financial independence
- Responsible for tasks, earn money as a reward
- Make your own payments when appropriate (e.g. by phone)
- Invest money yourself, save and give away glasses
The surprising costs associated with children’s birthday parties
- Budget $50/month to accommodate a $600 party
- Make gifts for other children’s parties on budget
How to set boundaries when it comes to how much to spend on children’s birthday parties
- Have conversations with children about money
- Declining some invitations tactfully (can’t do everything)
Here’s how to deal with the pressure to buy the next best thing for your kids
- Talk to your partner about what makes you happy
- Talk to your children about what you are grateful for
Andy’s advice on how to get on the same side of money with your partner
- Stop talking about numbers and start talking about dreams
- Get into the habit of talking about money and bring children into the conversation
How Andy and his partner paid off their mortgage in 5 years with kids
- Continued to live on half of the income after debts were paid off
- Clear WHY (“I never wanted to have my own house again”)
Which motivates Andy and his partner to spend less than they earn
- Focus on future goals rather than immediate goals
- Life changes are more exciting than things or experiences of today