Millennial Parents
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
Podcast Notes
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?