Cut your family’s grocery bill 🤑

Editor’s Note

Hi. It’s no secret — raising kids is pricey. Inflation and the rising cost of childcare aren’t helping either. So let’s do the thing we don’t do — and talk 👏 about 👏  it. This week, we’re covering what real families spend on childcare, how to save on groceries and travel, and what types of investment accounts will help your kid in the future. Let’s get into it.

— Kamini Ramdeen-Chowdhury / Senior Editor / Queens, NY

The latest in money news, tips, and trends:

Why having money convos with your kids (even toddlers) is key to their financial future — and yours.

Easy ways to cut your grocery bill. Take that, inflation. 

Saving for a new baby: Keep these items for your second and use this nine-month plan to get your $$$ right. Cha-ching.

How these apps can help your family stick to a budget. Goodbye, spreadsheets. 

Fun vacation destinations families can actually afford, plus how to get there without using cash. Start packing.

PS: If you or your bestie is pregnant and thinking, “I wish I could afford a midwife,” birthFUND (founded by Elaine Welteroth) may be able to help.

Last week, we asked you to vote on a question to answer. The winner was:

What other investment accounts can I create besides a college savings account for my kids?

FEATURED EXPERT:

Jamie Bosse, CFP, RFC, CCFC

 certified financial planner at Aspyre Wealth Partners and the author of “Money Boss Mom”

“Having other funds invested and growing for your kids outside of college savings can be a great way to set them up for a bright future,” says Bosse. It gives you flexibility to use the money for nonschool-related expenses and also helps teach kids the impact of investing over time, she adds.  

Bosse recommends opening:

• A brokerage account. This investment account is not usually tied to an employer or retirement plan, so you can move money in and out as you see fit, says Bosse. It’s also flexible. You can set it up for your child to take over or use it to fund future expenses for them like a car or wedding. 

• A Roth IRA. The money you put into this retirement account has already been taxed, so once invested, it’s not taxed again, says Bosse. “The benefit here is that you never pay tax on the growth within your [Roth] investments,” she says. This is smart to start when your child has earned income, since it gives them a head start on retirement savings and will also compound over time. 

• UTMA/UGMA accounts. “These are custodial accounts, meaning that once the money is in there, they’re essentially owned by the child,” Bosse says. You (read: the custodian) manage the account until your child is [between 18 and 25], depending on the state — so keep in mind that kids will have access to this money at a young age. Bonus: These are investment accounts that come with some tax savings since gains are often taxed at a lower percentage.

When your family grows — and we mean that both in the adding-more-members sense and the everyone’s-getting-older sense — your needs change. And with all the exciting (and urgent) impacts of that growth, planning for what feels like a distant future can easily end up on the back burner. 

But when it comes to things like life insurance, acting earlier can work to your advantage. Because generally, the younger you are when you purchase a policy, the lower your premiums will be. So if you’re ready to cross “get life insurance” off your list, or you just want some more info, New York Life has you covered.

We have thoughts. This week, we ranked our thoughts on money-saving parenting tips from 0–10. No science, just snark.

Hard Pass

0/10 Unnecessary baby products, like wipe warmers and fancy baby lotions. They seem helpful, but they just cost you space and $$$. Buy fancy lotions for yourself, instead.  

2/10 Thinking that breastfeeding is “free.” It’s not. Period.

Ehh

6/10 Using a nanny share. It gets points for saving you money, and loses a few for the awkward finance and “how to raise a kid” talk you’ll need to have with virtual strangers.

More of this

8/10 Buy Nothing Facebook groups. Pro: it’s all free. Con: Facebook 🙃 

10/10 Hand-me-downs from friends and family. Nearly new clothes without spending any money? 1000x yes. 

What Real Families Spend on Childcare 

A recent survey of 2,000 parents from Care.com found that inflation and the childcare cliff — the abrupt end of pandemic government funding for childcare centers  — are making parents spend more while many daycares, nannies, and babysitters increase their rates or shut their doors.

Some highlights: 

• Prices are (once again) up. An average family is dishing out close to a quarter of their income to pay for childcare, the survey found. (And 47% of parents are spending more than $18,000 per year.) This income percentage is slightly less than last year, but that’s likely because 35% are dipping into their savings to afford care. Not ideal.

• Waiting lists are longer. With one group estimating that 70,000 providers could have been impacted following the September 2023 funding halt, 54% of parents are spending a longer time on waiting lists and 81% of them are on multiple waiting lists. With fewer programs available, some are shelling out even more by turning to nannies or babysitters.

• Families are “patchworking” care. This ranges from after-school programs, and nanny shares, to asking friends and family for childcare help. Parents are making tough decisions like working multiple jobs, cutting their hours, or taking on debt to pay for the hikes in care costs.

This is likely unsurprising for the families that are going through it. The upside is that the report has recommendations to help parents cut costs, like talking to their employer about adding childcare benefits, taking advantage of childcare tax credits, and paying attention to who they vote for.