COA 4131 1st Edition Lecture 13 Outline of Last Lecture I Cost of childbirth II Children Young Adult Taxes Outline of Current Lecture I Money Gifts or Investments for Children II The Cost of School Shopping III Reality of What Kids Cost IV What We Pay Our Kids V Tuition at Florida State VI Before Marriage Current Lecture A Money Gifts or Investments for Children a Types of gifts i Saving bonds ii Saving EE bonds 1 Given at any age iii Stock broker 1 Buy 5 10 shares for a kid 2 Has to be family iv Trust fund 1 Usually through bank b Custodial accounts i Kind of trust ii Parent keeps paper work iii 14 000 per person per year 1 Most you can give to child or any family member iv Age of majority 1 18 or 21 years old depends on state 2 You are declared an independent from your parents c Uniform Transfer to Minors Act i Uniform Gifts to Minors Act d College i Average cost of one year s tuition and fees at 1 Public college 8 240 2 Private college 28 500 3 Counting housing and others can go over 50 000 at private college ii Investing 1 Organized plan 2 You can invest privately on your own a Savings bonds ect 3 Can have a combo of the two iii Time horizon factor 1 Only 4 years 2 The closer they are to 18 want more solid places to hold money iv Tax Laws and legislation 1 Debating it here in March 2 How much Bright Futures and other programs v Education IRA Roth IRA 1 Parents but money in IRA 2 R retirement 3 Take money and saves for college vi Financial Aid 1 Scholarships a Don t pay anything back 2 Loans a Have to pay back vii Prepaid Tuition Plans and College Savings Plans 1 Locks in price of college when child is younger and pay monthly until tuition price is paid off 2 Specific to Florida 3 If you do not go to a Florida school you can get the money back 4 Best for people who do not save money on their own viii 529 Plan 1 National plan to save money for college B The Cost of School Shopping a Back to school i Clothing 220 1 Ages 5 18 2 Spend more on older children than younger ii Supplies 89 iii Shoes 105 1 Shoes are almost as expensive as clothes iv Electronic Devices 190 1 Wouldn t be on budget a few years ago v Total 604 C Reality of What Kids Cost a 226 920 i Remember 300 000 for middle income families raising a child form birth to 18 years old 1 Know this number on test a Don t need to know other numbers ii Urban kids cost more than rural kids iii First child costs more than subsequent child 1 Hand me downs iv Cost of raising a child born in 2010 until age 18 1 College not included b 1 014 i Monthly cost to feed a family of four c 4 294 i Cost of raising a baby from pregnancy through first birthday D What We Pay Our Kids a 10 15 i Average hourly wage of a child care worker babysitter 1 Babysitter a Number of kids can increase price b 30 i Number of teenagers who had summer jobs in 2011 ii Should only work up to 20 hours per week 1 If it s more they find school work is negatively affected a Too tired b Can t focus c 12 i Average weekly allowance for children ages 8 12 E Tuition at Florida State University a In state tuition for 2011 2012 academic year was 5 825 for two semesters at 15 hours per semester i Really good deal compared to rest of the nation b Out of state tuition for the 2011 2012 academic year was 20 992 for two semesters i Paying almost 4 times as much as in state F Before Marriage a Money and Marriage i Inventory 1 Who owns what a Car house furniture ect ii State Laws 1 Legal union recognized by state or government 2 Community property a Not in Florida b People who live together for a certain amount of time but not married c Cohabitation iii Benefits and Insurance 1 If both parents have insurance usually pick the better of the two 2 Can have their own separate insurances if they want
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