COA 4131 1st Edition Lecture 13 Outline of Last Lecture I. Cost of childbirth II. Children, Young Adult, TaxesOutline of Current Lecture I. Money Gifts or Investments for Children II. The Cost of School Shopping III. Reality of What Kids CostIV. What We Pay Our Kids V. Tuition at Florida StateVI. Before MarriageCurrent LectureA. Money Gifts or Investments for Childrena. Types of giftsi. Saving bondsii. Saving EE bonds1. Given at any ageiii. Stock broker1. Buy 5-10 shares for a kid 2. Has to be family iv. Trust fund1. Usually through bankb. Custodial accountsi. Kind of trustii. Parent keeps paper work iii. $14,000 per person per year 1. Most you can give to child or any family memberiv. Age of majority1. 18 or 21 years old, depends on state2. You are declared an independent from your parentsc. Uniform Transfer to Minors Acti. Uniform Gifts to Minors Actd. Collegei. Average cost of one year’s tuition and fees at:1. Public college: $8,2402. Private college: $28,5003. Counting housing and others can go over $50,000 at private college ii. Investing1. Organized plan2. You can invest privately on your owna. Savings bonds, ect3. Can have a combo of the twoiii. Time horizon factor 1. Only 4 years2. The closer they are to 18, want more solid places to hold money iv. Tax Laws and legislation1. Debating it here in March2. How much Bright Futures and other programs v. Education IRA/ Roth IRA1. Parents but money in IRA2. R= retirement3. Take money and saves for collegevi. Financial Aid1. Scholarships a. Don’t pay anything back2. Loansa. Have to pay backvii. Prepaid-Tuition Plans and College Savings Plans1. 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 Plan1. National plan to save money for college B. The Cost of School Shoppinga. Back to school i. Clothing: $2201. Ages 5-182. Spend more on older children than younger ii. Supplies: $89iii. Shoes: $1051. Shoes are almost as expensive as clothesiv. Electronic Devices: $1901. Wouldn’t be on budget a few years agov. Total: $604C. Reality of What Kids Costa. $226,920i. 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 kidsiii. First child costs more than subsequent child1. Hand-me-downsiv. Cost of raising a child born in 2010 until age 181. College not includedb. $1,014i. Monthly cost to feed a family of fourc. $4,294i. Cost of raising a baby from pregnancy through first birthday D. What We Pay Our Kidsa. $10.15i. Average hourly wage of a child care worker/babysitter1. Babysittera. Number of kids can increase priceb. 30%i. Number of teenagers who had summer jobs in 2011ii. Should only work up to 20 hours per week1. If it’s more, they find school work is negatively affecteda. Too tiredb. Can’t focus c. $12i. Average weekly allowance for children ages 8-12E. Tuition at Florida State Universitya. In-state tuition for 2011-2012 academic year was $5,825 for two semesters at 15 hours per semesteri. 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-stateF. Before Marriagea. Money and Marriagei. Inventory1. Who owns what a. Car, house, furniture, ectii. State Laws1. Legal union recognized by state or government2. Community propertya. Not in Floridab. People who live together for a certain amount of time but not marriedc. Cohabitation iii. Benefits and Insurance1. If both parents have insurance, usually pick the better of the two2. Can have their own separate insurances if they
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