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What do you do when your heart demands something, but your bank account says no? That's the dilemma that many, especially Millennials, find themselves in when they think about having a family.

Even if your idea of a happy family isn't necessarily 2.5 kids, a dog and a house with a picket fence, financial realities are making it hard for many Americans to envision having any kind of family at all. When a New York Times/Morning Consult survey asked men and women aged 20-to-45 about their plans for having children, 64% said they were not planning to have children soon because childcare is too expensive, 43% said financial instability was holding them back, and 44% said children were just too expensive.(1)

According to the U.S. Department of Agriculture, the average cost of raising a child to age 17 has ballooned to over $230,000.(2) For a generation saddled with student debt,

job insecurity and slow growth of real wages, waiting to start a family is a pragmatic - if unsatisfying - response. But like other financial goals, having a family is achievable if you have a plan and stick to it.

If having a happy - and financially secure - family is in your future, here are some ways you can start planning and saving now:

• Start a savings account earmarked for family expenses and, if possible, have money from each paycheck diverted into that account automatically. If you receive your income by direct deposit, your bank should be able to do this.
• When picking a house, a smaller-than-ideal house in a better school district may be a better choice than a sprawling ranch in an area where public schools are weaker. If you're in an underperforming district, you may feel the need to send your kids to private school, which can be an additional major expense.
• Start accumulating baby gear now. Tell your family and friends what you're doing and start a baby registry at Target or an online source like Amazon or babylist.com. This can significantly cut into the first-year budget hit.
• Plan for the unexpected. Think through how you'd handle it financially if one of your children is born with a disability. Even a relatively mild disability can impact the parents' earning ability. And does either parent have a family history of twins? While having two doesn't double all of the costs (a two-seat stroller isn't much more than a single-seater), it definitely increases the workload for both parents. And until there's a two-for-one college plan, that cost will be significantly higher.
• Maybe pick up a side hustle to help boost savings before you have additional parenting responsibilities. As you're thinking that through, look for one that could produce more than supplemental income if one parent needs - or wants - to stay home with a child for an extended period of time.
• Start a 529 college savings plan early. Under current law, the regulations are far less restrictive than what they used to be. Perhaps ask if the children's future grandparents would consider starting a 529 for their benefit(3).
• Talk with your financial advisor about your family plans and how they may impact your short- and long-term goals.

It's tough to think dispassionately about such a deep-rooted emotional issue. But if you do - and take steps to prepare - you'll be in a better position to have the financial resources necessary to raise the happy family of your dreams.

1. https://www.bizjournals.com/bizwomen/news/latest-news/2018/07/why-the-birth-rate-is-declining.html?page=all

2. https://www.usda.gov/media/blog/2017/01/13/cost-raising-child

3. https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins-11

ACR# 342328 02/20
NFPR-2020-47

While the cost of nuptials has held steady over the past few years, too many couples are planning to borrow to cover the cost. Here's how to avoid the debt trap.

A wedding ceremony can range from picking out some nice suits and heading over to city hall to reserving a 200-guest blowout, with varying costs. But according to a survey by wedding website The Knot, the average cost of a wedding in the U.S. was $33,900 in 2019.(1)

All too often, young couples are planning to borrow in order to pay for their weddings. A Student Loan Hero survey found that 74% of respondents said they planned to take on debt to cover the costs.(2)

Having that perfect day is important, but carefully consider the ramifications if it creates financial burdens you'll have to carry while you're adjusting to married life. Not to mention how that much debt could impact your retirement savings or any plans to start a family.

The two ways to get to your goal sooner are to reduce costs and save more. Here are a few tips:

• Think about the balance between spending on the ceremony and spending on your honeymoon - consider splurging on one and not the other.
• Consider location, location, location: According to Investopedia.com, the average wedding in Mississippi costs around $13,000, while tying the knot in New York can easily top $88,000. A destination wedding - which wraps wedding and honeymoon together - is somewhere in the middle at about $27,000. (3)
• The biggest drivers of wedding costs are the size of the guest list, the venue (whether it's at your backyard or the Four Seasons) and the style (tiaras or blue jeans). You might be able to plan an elegant wedding for 20 guests or a barbecue for 200 for around the same price. Decide on your wedding style and the size of the guest list, then stick to them.
• If you must get married in a big city, think about hiring a caterer from a less expensive suburb who'd be willing to drive in. Also, venues tend to charge less on Fridays and Sundays.
• If parents or others are helping with the expenses, find out how much they intend to contribute?
• Deduct contributions from your budget to see what you need to save, then divide that by the number of months between now and the big day. That's how much you need to save each month to make this happen without borrowing. If that number is overwhelming, think about pushing back the date to give you more time to save.
• Automate your savings by setting up a separate savings account and have part of your paychecks deposited there.
• Get a side hustle. Maybe sell some stuff on LetGo or Craigslist. Consider postponing other big purchases (car, house) until after the wedding.
• Don't drink so much Starbucks! Seriously, cut down on out-of-home food and beverage and put that money in the savings account. It'll add up faster than you think.

Finally, while talking with your financial advisor isn't on many pre-wedding checklists, it should be. Your advisor can help you evaluate your current situation as well as your vision for the future.

1. https://www.theknot.com/content/average-wedding-cost

2. https://www.cnbc.com/2018/03/13/wedding-debt-can-hurt-a-couples-financial-future.html

3. https://www.investopedia.com/financial-edge/0212/how-to-save-for-a-wedding.aspx

#wedding #save #largepurchase #wellcents

ACR# 342322 02/20
NFPR-2020-44