David Lerner Associates News

Parents, Kids and Money

Core Facts


Wednesday, May 30, 2018

Making sure that your kids are well taken care of and have the best possible opportunities and education is, of course, what all parents want, but how expensive is it, and what are parents spending their money on? It is not just basic expenses like food, clothing, and school fees. They are also spending on other things too. How expensive can having a kid be in real terms?

As kids get older, they have to be educated, and that can have a steep price tag. The fact is parents come in all shapes, sizes, and income brackets too. For some, spending on a private education may be the norm while for others, the challenge is keeping the proverbial wolf from the door and a roof over their heads. The national average for private elementary school in 2017/ 2018 is just over $9,200. A private high school education can set you back over $14,000 every year.

When it comes to sports, some are more expensive than others due to equipment costs and coaching or lessons. According to a TD Ameritrade survey, almost 20% of American families spend more than $12,000 per child annually on youth sports. That is an extra expense of $1,000 every month per kid and is almost the same amount as the average American household’s monthly mortgage payment!

Teaching kids the value of money is important, as according to research, we have begun forming our financial habits by the age of seven. In the United States, the average amount given to a child between the age of four and fourteen is $454, and that does not include any birthday cash gifts.

No matter how much you earn, you will want to do the best for your kids. Making sure that you have enough set aside to take care of your little bundles of joy is essential, as no matter what, they are going to cost money. It is not just diapers that you have to be thinking about. Save now so that when you have kids, you can afford to give them the best you can.

 

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC

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About

Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com

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Contact

Jake Mendlinger
Account Manager
Zimmerman/Edelson
516.829.8374 X 232
jmendlinger@zimmed.com

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