I got upset when I read this article about a non-working family in Britain. Actually, I was pretty pissed off to be honest.

The article talks about a 43 year-old woman who lives in a 2 bedroom council flat, which is the equivalent of low-income housing here in the United States, with three children and one grandchild. She doesn’t work and has never worked. The family has had some pretty terrible experiences recently, documented in the article, but my compassion wanes as I hear how they entered the situation.

These lines in the article changed my sentiment completely, which I’m sure you’ll pick out when you read the brief article:

• … But she concedes that she doesn’t really know why she didn’t get a job, and that there was an element of just “not getting round” to it.
• … She doesn’t think school wanted her to stay on because she “wasn’t too bright” and used to bunk off [not attend] a lot.
• … Without any qualifications she assumed she wasn’t able to follow her chosen path and join the Army. She never actually made it to the recruitment office to ask.
• … As no-one in the house is actively seeking work, they don’t count as “unemployed” and none claims Jobseeker’s Allowance [unemployment].
• … “I’m sorry they have to pay tax money to me. If I could get a job… give me a job then and I’ll work, and then they won’t have to pay me.”

The lesson here is that you have to take control of your life. I don’t think she’s lazy but it just sounds like she didn’t try to do anything. She didn’t get a job, didn’t finish school, and all before the whole aspect of family came into play. I can understand not working or going to school to raise a family, but the reality is that none of the children work either! William, her son, was savagely attacked by local gang members, a situation that likely wouldn’t have happened had they not chosen to live in council housing in the first place.

The thing that gets me is that she didn’t even try. None of them did. There are plenty of stories of people who have tried and simply given up out of despair because of the economy. I have compassion for their situation because they’ve tried to change their situation. While this family doesn’t take unemployment (Jobseeker’s Allowance), they also aren’t taking any steps to improve their condition. The daughter sits at home all day.

Am I being too harsh? What do you think?

My wife and I had been tossing around the idea of getting a dog for the last few months and our recent trip to England, to visit good friends of ours, gave us a little reminder of how much we liked having a dog around. So, now that we’re back, we’re going to check out the local animal rescue and pounds to see if there are any little guys over there that we like and that also like us! As with any major decision (I consider getting a dog a major decision), you always have to consider the financials or you’ll probably find yourself in a rough spot someday.

Now, back to the matter at hand, we are looking to get a smaller type dog (around the size of a terrier rather than say a lab) so this brief total cost of ownership analysis will be focused on a small dog. We’ll also be going with a pound puppy rather than a bred dog because we feel that since it will be a pet, and not a working dog (my friend hunts, so for him a pure bred Labrador is a must-have), it’s better to go that route. We understand that there is always the potential for future health issues and unknowns about the puppy but that’s a risk we’re willing to accept.

Acquisition Costs

As mentioned earlier, we’ll be going with a pound puppy so we won’t be paying a breeder any fees and chances are all the initial veterinary and medical costs (for things like spaying and neutering) are mostly covered. However, let’s say that none of them are covered and let’s work from there and let’s call them acquisition costs. In reading various resources online, the estimated cost of the first year’s vet and medical costs can range anywhere from $100 to $700. So, if you know how much you can buy your dog for, add on around $500 (just to be safe) for medical costs and you have your acquisition cost.

Fixed Costs

Fixed costs refer to all the things you probably will buy once and then replace as needed. These are things like a water bowl, beds, toys, a crate, cleaning supplies, etc. This varies greatly but you’re talking a base of around $150-250 depending on where you live. Urban areas are obviously more expensive than suburban or rural areas and the best way to determine this is to just go to your local store and start adding things up.

Another fixed cost you may have is training. You can try to train a puppy yourself through the help of books or websites, which is very low, or you can go with a professional. The benefit of professionals is that they know what they’re doing, but they aren’t cheap. Training could cost you several hundred dollars, but training is essential for your mental health!

Variable Costs

Variable costs really are variable! They include the replacement of some of your fixed costs since they will be used and deteriorate. However, those will out be likely dwarfed by food. The best way to determine this is to ask the place you’re getting your dog from or looking up online. A quick search shows that dog food for a Westie is around $30 a month, or $360 a year. You may also have other variable costs like various medical items to keep your dog healthy, remember to include those as well.

Total

If you estimate the average lifespan of a dog is around twelve years, the cost of the dog could reach into the tens of thousands of dollars. It’s important that you’re aware of this before you get a dog because you don’t want to one of the many owners who are forced to abandon their dog at the pound because you can’t afford them. It’s an unfortunate circumstance but it happens all the time.

One quick note about emergency funds and pets, we will be boosting our emergency fund whenever we get a pet (much like we would with kids) because pets can have accidents and problems just as people can. I’m not exactly sure how much we will adjust it upward but we definitely will.

Time to look for a puppy!

(Photo: klash)

This is a post by Connie Brooks, a new mommy in Louisville, KY and a regular contributor on Blueprint for Financial Prosperity.

Should you quit your job and stay at home with your baby? This is probably the biggest question new parents have to face once they find out their little one is on the way. The truth is, there’s no right or wrong answer to this question. It all depends on what is best for your family. If you quit your job and stay at home you are going to lose income. You have to weigh that against the benefit of having more time with your child.

Before you make that decision, it may help to weigh the pros and cons a bit, and take a logical look at things.

Can you afford to quit your job and stay at home with your baby?

Losing a large chunk of your monthly income isn’t easy for any family. You will have to make a lot of adjustments, not the least of which is trimming your budget. If you are home to take care of your baby, then you can breast feed without interruption (obviously if this is mom staying home and not dad!), you can cook regular meals instead of eating out, and you can spend less on clothing. All of those things save you money each month. You will also spend less on gas, and you will not have to pay for daycare services.

The only way to tell if you can really afford to quit your job and stay at home is to work out a detailed monthly budget. Factor in how much money you will lose, and how much you expect to save. Do not forget that you will have additional expenses once your baby arrives. You will have to pay for clothes every couple of months, formula if you use it, and more diapers than you will ever believe.

If you cannot make things add up, and you don’t see any way that you can quit your job and stay at home with your new baby, then you may want to look into working from home instead. You may not be able to bring in as much money as working your old job, but it may be enough to get you through.

Pay Down Your Debt First

If you have a large amount of revolving debt on your credit cards, or a hefty car payment or mortgage, make sure you factor those things in. If you were using the income from your regular job to pay off your debt, what is going to happen when you quit? You do not want to be forced to make late payments on anything, ever.

If you know you are in debt, and you are having a baby soon, please make paying down that debt and starting an emergency fund a priority. I say this because if you quit your job, and an emergency comes up, you will have no cushion. The best thing you can do for your family, and your new baby is to be in a strong position financially before you quit your job. What if your baby gets sick? What if you do? You have got to have enough money socked away to not run things down to the wire every month.

The Unexpected Parts of Staying At Home

Having a baby is overwhelming, in every sense of the word. It’s amazing, and there are no words to describe how wonderful it is, but it’s also very stressful. You new little one is going to sleep at most four hours at a time. The constant wake/eat/sleep cycle is enough to confuzzle even the most organized person.

You also have to remember that for nine months you have had various hormones blasting through your system, and after the baby comes those hormones go away. It’s not “in like a lion out like a lamb” either. It’s more like “In like a lion, out like a hurricane”. You can expect to be moody, possibly depressed, and certainly sleep deprived. There will be days where you are lucky to get a shower and eat regularly. It does pass, I promise! But the first few months will be hard. Whether you stay at home or go back to work, get your baby and your family on a schedule as quickly as possible. It will make either transition much more manageable.

Feeling Lonely?

Staying at home with your baby is wonderful, but you could find yourself feeling lonely. I am not a terribly social person, and I still found myself “attacking” my husband when he got home – just for a little conversation!

Make sure that you involve your support network as much as possible. Friends, relatives, in-laws, whoever wants to help, let them help. Especially if you go back to work. If you stay home, make sure you are getting enough social interaction. Loneliness, combined with post-partum depression is not fun, and it is avoidable.

The best advice I can give you about deciding whether or not to quit your job once your baby arrives is this:

Decide well in advance.

If you have nine months to work towards your goal of staying home, then you are going to be a lot more prepared. It is the hardest thing in the whole world to leave your baby somewhere and go off to work. If you know you have to work to provide for your family, or you want to work because you enjoy it – that’s ok! Just make sure that you make the necessary preparations in advance, and give yourself some breathing room. You may want to return to work, but not right away.

If you arrange all of the details before your baby arrives, then everything will go smoothly. You might be able to arrange with your boss to have an extra month off, or if you are staying home, it gives you that much more time to save and get ready.

If you are quitting your job for good, then give your employer as much notice as possible. There is no sense burning bridges! You may need to go back to that job some day, and the best thing you can do is to leave on good terms.

Whatever you decide, don’t let anyone talk you out of it. Other women in particular have very strong feelings about this. Don’t let your mother, your mother in law, or your boss decide what is best for your family. Only you can do that. Just take the time to work through everything before you take the plunge – one way or another, if you plan it well enough everything will be fine.

(Photo: mackro)

This is a post by Connie Brooks, a new mommy and a regular contributor on Blueprint for Financial Prosperity.

Having a baby is a huge life event, and your entire financial outlook will change because of it. As if the initial cost of having a baby weren’t enough, you also have to ensure you’ve included your new addition to your overall financial plan. Here’s a quick guide on how to include your new baby in your long term financial plans.

Financial Paperwork

Let’s start with your baby’s paperwork:

1. Add your new baby to your insurance policy – This one’s a no-brainer. You do want your insurance company to pay for labor and delivery right? Most insurance companies give you 30 days to officially add your brand new person onto your policy.
2. Get a certified copy (or two) of your baby’s birth certificate - This is as simple as filling out a form and mailing it in. In fact, you can request your baby’s birth certificate just like you would request your own. If your hospital does not give you the forms when you have your baby, then you can visit the CD’s National Center for Health Statistics and select your state to order a certified copy.
3. Get your baby a social security number, and social security card – This is something that your hospital will help you take care of. When you fill out the information for your baby’s birth certificate you will be asked if you want to do the same for the social security office. If for some reason you do not get a chance to do this before your baby comes home, then you can click here for more information on what to do to get your child a social security number.

Once you have your baby’s paperwork in place, then you are ready to begin adding them onto your financial accounts. It will take up to a month for your baby’s social security card to arrive in the mail. Wait until you have it to do the things below because you will need their Social Security number for each of your next steps.

1. List your baby as a beneficiary on your financial accounts - This means that you will have to update any investment accounts you have to reflect the change, including any accounts you hold through your job. Now, you do not have to list your baby as a beneficiary – you can always leave your spouse or significant other as the sole beneficiary.
   
   However, my husband and I did add our daughter onto all of our accounts. We were afraid that if something happened to both of us at once, she might not end up with the money. On most of my financial accounts my daughter is listed as a secondary beneficiary, after my husband.
   
   If you take the time to do this right after your baby is born, instead of waiting, then it will give you greater peace of mind down the road.
2. Have a will drawn up - Yes, I know, no one wants to think about this. But I can give you one good reason (well I could give you about a hundred, but we’ll stick with the most important). Your will is the only chance you have to name guardians other than yourself for your child. If something happened to you and your spouse unexpectedly, who would you want to raise your baby? If you do not decide, then our judicial system will, and that can get ugly, fast. It also gives you the opportunity to clearly spell out what happens to your money and property when you die. All things considered, it is an essential step if you want to secure your child’s future no matter what happens to you.
3. Buy life insurance for yourself and your baby – This also falls into the “I don’t wanna do that” category for some of us, but it’s important. Gerber life policies are dirt cheap for children, and term life insurance is dirt cheap for adults. Buying life insurance doesn’t have to be painful, but it is essential.

Teaching Kids About Money

The next step from here is to decide how you want to teach your child about money as they grow up. In our case I opened a savings account, a Coverdell ESA account, and a general investment account for our daughter. All accounts are jointly in my name with my husband as the beneficiary if anything happens.

I chose to open these accounts for my daughter because I want to teach her that saving and investing are mandatory, not optional. I want her to grow up using them, and understanding them. My husband and I did not learn how to manage our money until relatively late in life. I do not want things to be that way for my daughter.

When she is older, I am going to jointly open a couple of credit cards with her and teach her how to use them. I do not want her to go off to college like I did, sign up for a credit card just to get a free t-shirt, and proceed to ruin her credit. I want her to know that her available credit is there to protect her in an emergency and not something you use just to order a pizza.

Now, I’m not even going to tell you that what I plan to do with my daughter is the only way, or even the correct way to teach a child about money. It’s just what I believe is best right now. If I change my mind as she grows, we will alter our plan.

Some other things you will want to consider:

• Are you going to buy your child their first car? What about insurance?
• Are you going to pay for your child’s college education? In full, part, or not at all?
• How soon do you think your child should get a job?
• What will the “Money rules” be in your house? (Save 10%, 20% or more?)
• How will saving for your child’s future affect your retirement accounts?

You have a unique opportunity with your child – if they grow up learning a thing to be true, then they are likely to continue doing it when they get out on their own.

Now, For The Easy Part…

The most important thing to do right now is to sit down and talk with your spouse about how you want to raise your child. Discuss which types of accounts you will need to do that, and then work together to make it happen. There is no “catch all” strategy for how to plan your future to include your child. But you can be very sure of one thing: Once you have your baby your life will never be the same again, and neither will your money!

How about you? How do you teach your children about money? What did you do to work them into your long term plans?

(Photo: Baby by 44444, Baby Birth Certificate by michaelallroy, Ladybug by ncbrian)

This is a post by Connie Brooks, a new mommy in Louisville, KY and a regular contributor on Blueprint for Financial Prosperity.

Having a baby is one of the most incredible experiences in the world.

There are no words to describe the moment you hold your baby in your arms for the first time. When their little eyes look up to you and you realize you made the little tyke. There are no words to describes the feeling of pride the first time you see them turn over, or when they crawl and then eventually walk.

While these memories are priceless, having a child is a very costly endeavor. Most parents expect to pay for the obvious things once the baby arrives like food, diapers, and clothes but they often don’t anticipate “the other stuff.” When we had our daughter, we expected to pay for more food and diapers, but we never planned for “the other stuff.” From the moment I found out I was pregnant though, a seemingly limitless chain of bills started showing up. We were literally supporting our baby from the moment we knew about her. It doesn’t have to be that way.

If you are thinking about having a baby any time soon, here are some of the expenses (”the other stuff”) you’ll want to plan for, even before your baby arrives:

1. Prenatal Care

As scary as it is to think about, most miscarriages happen within the first three months. Chances are your Ob-gyn will not even want to see you until you hit the three month mark because of this. After that, you can expect to go once or twice a month for the next six months, and even more frequently for the final three months.

Every time I went to my Ob/Gyn, it cost me an insurance co-pay of $30. We had hyperactive prenatal doctors so we ended up going even more often than average. Our cost for pre-natal doctors visits over nine months was around $500. Your cost will vary depending on your insurance plan.

2. Prenatal Diet

Your baby is literally depending on you for its nutrients. If you don’t have a healthy diet, then your baby will not get what they need, and that could have long term consequences.

The truth is, we weren’t eating very well when I got pregnant. We ate out once, sometimes twice a week, and ate a lot of beans, rice and eggs otherwise. Doing that kept our before baby food budget to around $300 a month.

After I found out I was pregnant, our food budget literally doubled. We stopped eating out, and I bought fresh organic fruits, vegetables and yogurt. The only food I craved when I was pregnant was steak (which was odd since I am a semi-vegetarian!). The steak was expensive too because I chose to buy only top quality grain-fed beef.

I did not care how much our food ended up costing us, I wanted my baby to have every building block she needed to grow. Over a twelve month period (I breast fed for three months afterward, so we kept our diet the same.) Our food ended up costing us $7,200. Prenatal vitamins added in another $270 over nine months.

3. Maternity Clothes

– I gained around 20 pounds while I was pregnant, so my clothes fit me for most of my pregnancy. However, by the eighth month, there was no containing my belly. I had to face facts and invest in a few good quality maternity clothes. I bought a week’s worth of clothes as cheaply as possible. I also used my husband’s shirts and bought things like hip-hugger pants that I could wear after my baby. The total cost of my maternity clothes was around $400. If you’re careful you might be able to get by cheaper, but it could easily cost more depending on your needs. Try to maximize sales whenever you can!

4. Baby Clothes & Supplies

We were very blessed because our friends and family gave us nearly everything our daughter would need for her first few months. If you don’t have a strong supportive network, then this will be a real expense.

Wal-Mart and Target have the most reasonably priced baby clothes. If I had to put a price on what we were given I would say that it amounted to easily $800 to $1000 worth of diapers, clothes, shampoo, and supplies. Again, we had an extremely generous family, who put all they had into helping us prepare for our baby. In retrospect, If I were the one paying for the items, I would have spent around $400 total on clothes and supplies for my daughter’s first few months – and that would have been plenty.

5. Nursery & Travel Items

The crib for our daughter was $500. Her mattress was $100. We bought a crib that would turn into a toddler bed, and eventually a full sized bed as she grew. Her car seat and stroller ran us about $400 – again because we bought for the long term and wanted something that would last through several children if necessary. You can definitely do this cheaper than we did! The total cost for her nursery was around $1,500 after decorations.

6. The Big Day(s): Hospital and Delivery Costs

How much this ends up costing you will depend on your insurance, how difficult your labor is, and how well everything goes.

In my case, nothing was simple. I spent two days in the hospital being induced and ended up with a c-section. My daughter had a fever when she was born, so she spent a week in the hospital on antibiotics undergoing a lot of tests. (She was fine, thank God!) They kept me for four days after my surgery. I can honestly say that for a month after we came home I dreaded going to the mailbox and pulling those medical bills out!

The total cost for her delivery was nearly $4000.

7. The Paperwork

After my daughter was born, we did have to take care of some paperwork. Particularly ordering several copies of her birth certificates. This was another unexpected cost. I’m not sure why I thought that the hospital would provide us with one – they didn’t. They sent her birth records off and we had to order an official copy. Those were $10 each, and we ordered 3, so we $30 spent on her paperwork.

8. The Aftermath

In the first few months following her delivery she and I both went back to the doctor a couple of times for routine checkups. This was not a huge expense, but it was one I did not expect. The follow-up visits probably ran us around $150.

From conception to birth, our daughter cost us about $14,000. Fourteen thousand dollars. Oh, and that does not even take into account the diapers or the eventual formula costs once I went back to work. It also does not include childcare, which thankfully, we did not have to get.

If you are considering having a baby, please make sure that you get a hefty savings account going before you take the plunge. Many of these costs we had not planned for, and that made it more difficult than it had to be. When we planned out our finances before getting pregnant, we always planned out what we thought the costs would be after we had her, and we did not take into account what it would cost just to get her to delivery!

I am very sure that if I had it to do over again, I could do it for less money. I think that I went into it from the mindset of doing what I thought was right for my baby, and the finances took a backseat. That being said though, my daughter’s birth story is an excellent example of how having a baby can easily cost you a fortune – so it’s something to think about.

How about you? Do you have children? What would you say it cost you and your spouse to have your baby? Leave us a comment below!

(Photos: Baby Factory by swanksalot, Baby Booties by normanack, Baby Birth Certificate by michaelallroy)