Mothers and fathers spend a lot of time thinking about money in general, the cost of raising children, the expenses associated with having a baby, how homeschooling works, whether cosigning on college loans can impact their credit, the total bill for a college education, and average expenses for modern families. Of course, busy parents have much else on their minds, but those money-related queries tend to dominate their financial pondering. If you're a parent or are about to become one, review the following questions and answers to better prepare yourself for the long journey of being a mother or father for youngsters.
What's the Average Cost to Have a Baby in 2023?
The cost of bringing a child into the world has been going up steadily for at least 50 years. Parents to be must understand that prices for related services vary widely and depend on their healthcare insurance. Without insurance, there are variances, but the average cash cost, with no healthcare coverage, for having a baby is about $19,000. The good news is that insurance brings the cost down considerably to around $2,900. That amount represents out of pocket costs for couples who have average insurance coverage in place. Something like 95% of all couples who have babies are covered by one or more types of insurance.
Will Cosigning on a College Loan Impact My Credit Scores?
Moms and dads sometimes feel the need to cosign on a child's college loan application. There are pros and cons to doing so. That's why it's essential for potential consigners to review all the facts before they put their signatures on anyone else's loan document. Diligent individuals always ask one question first, how does cosigning a student loan affect credit? Then they evaluate the situation before making a final decision.
Whenever a child, employee, friend, acquaintance, or anyone asks you to be their college loan cosigner, stop before answering yes or no. Of course, parents want to help their children pay for school. But be sure to analyze the possibilities, both pro and con. Think about your credit score, how much the total loan balance is, the borrower's ability to pay, whether your own credit scores might suffer, and more.
How Much Does Homeschooling Cost per Child?
Millions of parents are tired of fighting the battle to improve public schools and have decided to homeschool their children. Whether they do it themselves or pay to have their children attend nearby academies, the costs range from about $700 per pupil per academic year to around $1800 for a year. What does that price tag include? Generally, you'll get good value for the cost because the curriculum, field trips, supplies, and school supplies are included as part of a total package.
What's the Average Price of College These Days?
Without considering room and board, which are similar to housing and food costs you'd have even if you didn't attend college, the main way to compare education costs is to look at tuition and fees. While there are many variations, exceptions, and special cases, the national data shows that one average year of tuition and fees at a private college will set you back about $40,000 in 2023. For out of state students at public colleges and universities, the bill is about half that, at $23,000. Note that in state public schools are by far the best bargain, at just $10,500 for a typical year's tuition and fees.
What Is the Typical Family Budget?
Everyone has a unique way of spending, saving, and earning. However, it can be helpful to compare your own numbers to national averages and see whether you're spending more or less than others. Consider the top six spending categories of transportation, housing, utilities, taxes, healthcare, and food. Write down how much of your total income, in percent, you devote to each one, then determine whether you're above or below the averages, which are:
- Housing/rent/mortgage: 15%
- Transportation/car payments/fuel/insurance: 12%
- Taxes: 11%
- Utilities: 10%
- Food: 9%
- Healthcare: 6%
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