COA 4131 1st Edition Lecture 12 Outline of Last Lecture I. Steps in Buying Home II. Property TaxesIII. Selling a HomeIV. Consumer Mortgage InformationV. Transportation and Vehicles Outline of Current Lecture I. Cost of childbirth II. Children, Young Adult, TaxesCurrent LectureA. Cost of childbirtha. Costs of having childreni. Healthcare1. Because of high cost of childbirth, health insurance is a necessity2. Some employers have been cutting back on coveragea. What is covered?b. Copayment or deductiblec. Number of days in hospitald. Pediatric newborn care in hospital ii. Adopting1. National Council for Adoption 2. Most parents adopt children though agenciesa. Kids from foreign countries and U.S.-born special needs children are of high interest to prospective parents iii. Raising1. $6,500-$10,000 for vaginal delivery2. Add $5,000-$6,000 for C-sectioniv. Childcare 1. First year of child’s life= $9,000-$14,0002. From birth to 18 years old, middle-income parents will spend nearly $300,000 and upper-income parents will spend $430,000a. Don’t include college3. Housing is the biggest chunk of total cost B. Children, Young Adults, Taxesa. Tax breaksi. Kiddie tax1. Tax filed by parents for the investment income of children under age 14b. Allowancesi. Children spending ii. On chores and grades or set amount each weekiii. Depends on parents iv. When to start?1. Depends on child’s interest and maturity v. Teens earn over $100 billion a year and spend it on clothing, food, and entertainment c. Parents and schooli. Teach by example ii. Set up stocks with kids1. Something they are interested ina. McDonald’s, Disney, Apple, ectiii. Taking kids along shopping or at the bankiv. Parents should expect kids to make purchasing mistakes v. Some allowance or birthday money should be spent on what the kid
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