|MICHELLE SINGLETARY; MICHELLE SINGLETARY YOUR MONEY|
Here are my answers to two questions about raising and educating children from a recent online discussion:
Q: My husband and I are 30, both steadily employed, and we bought our first home last year. Our incomes are a combined
If you both plan to continue working full time, put child care costs at the top of the list of new expenses. The percentage of family income spent on child care has stayed constant – about 7 percent – between 1986 (the first time data were collected) and 2011, according to a
Not including college costs, a middle-income family will spend
Q: I have a dear friend with consistently questionable financial decision-making skills. He is 67, single, virtually no retirement money saved, rents his house, has credit card debt and an old car (12 years old). He is currently working in the tech sector making
A: I think your friend needs to catch up on his retirement savings and get out of debt, but he can focus on his finances and still provide some financial aid for his granddaughter because it's important to him.
If he qualifies, he could take out an affordable term life insurance policy for the granddaughter. And because the granddaughter is a minor, he should get legal advice on the best way to handle the beneficiary designation so that the money is used for her college education or other needs.
Or he might also consider putting money in a 529 college savings plan for the child or advising her parents to open one to which he can contribute.
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