bundles for babies

WELCOME TO BUNDLES FOR BABIES

FINANCIAL PREPARATIONS FOR YOUR NEW FAMILY

HOUSEKEEPING

• FIRE EXITS• REST ROOMS• VENDING MACHINES• RESOURCE TABLE• BUNDLE

IMPORTANT CONSIDERATIONS

• Financial readiness is a critical element to the successful completion of our day-to-day mission

• Financial preparations for your new family ensures financial fitness and readiness

You will either learn to manage your money, or the lack of it will always manage you. -Dave Ramsey

• EMERGENCY ASSISTANCE LOANS• COMMUNITY PROGRAMS• EDUCATIONAL GRANTS

• Air Force Aid assistance is available 24/7 by calling the Command Post at 256-5891 after duty hours or by appointment through the Airman & Family Readiness Center 256-8668.

Emergency Travel (Death/Illness)

Vehicle Repair

Basic Living Expenses (Food, Rent, Utilities)

Respite Care

Funeral Expenses

EMERGENCY ASSISTANCE

FALCON LOAN PROGRAM

Emergency Situation

Designed to deter people

from engaging in payday

loans

Interest free loan up to $750

COMMUNITY PROGRAMS

• Child Care for Volunteers• Child Care for PCS• Give Parents a Break• Car Care Because We Care• Youth Employment Skills

EDUCATIONAL GRANTS

• Henry H. Arnold Grant• Application timeframe is the first part of the

year (Jan-Mar)

EMERGENCY SAVINGS PLAN• Only 32% of Americans would be able to cover a

$5000 emergency with cash without going into debt for it. –Gallup/Bankrate.com survey

• Financial experts suggest 3-6 months of living expenses in an emergency savings account.

• BABY STEPS! Strive for $1000 first

According to Money Magazine, 78% of you will have a major negative financial event in any 10 year period. Something is going to happen and it is important to plan for it.

TIME IS KEY TO INVESTING

$2000 / Yr for 40 Years from age

26 to 65

$2000 / Yr for 7 years between age 19 and 25

$2000 / Yr for 5 years from age

14 to 18

Invested a total of $6750 between ages of 8 and 13

Investing for life$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$80,000 $14,000 $10,000 $6,750$130,000

$893,704 $930,641$1,174,600

$1,266,170

$4,265,114

Total Invested Net Earnings

SOCIETAL FINANCIAL STATISTICS

• A Parenting Magazine poll indicates that 49% could not cover even one month’s expenses if they were to miss a paycheck.

• 70% of all Americans live paycheck to paycheck.

• US Census Table shows that 15% of all American families have a negative net worth.

• Average American savings rate is 2%

TOP FINANCIAL SHOCKS THAT PARENTS FACE

So where does the money go?

• Maternity Leave• Child Care: $5,000 to

$20,000• Diapers & Wipes:

$100/month for wipes and $2000 for diapers until trained

• Formula and/or breast feeding expenses

• Baby Gear: crib, changing table, rocker, car seat, stroller, swing, monitor, bouncer, etc.

• Clothing & Shoes: THEY GROW FAST!

• Baby Food: Consider homemade items

AVERAGE COST STATISTICS

• Total estimated cost from birth to age 17 equals $221,000 (excluding college education)

• First year cost average equals $9,000-$11,000

• Child-related expenses account for 14-29% of household expenditures

MONEY MISTAKES

• BLUNDER #1: Life insurance on the baby

• BLUNDER #2: Putting retirement savings on hold

• BLUNDER #3: Passing up eligible tax breaks

• BLUNDER #4: Failing to make a will

• BLUNDER #5: Getting sloppy about spending

UNDER THE RADAR BUDGETING CONSIDERATIONS

• BABY CLOTHES: consider the Airman’s Attic or the Thrift Shop

• CREDIT CARDS: How much more are you willing to pay for something than what it is worth.

• GROCERY SHOPPING: Utilize manufacturer’s coupons

Overall, American households spend over $412 billion in credit card charges each year.

OTHER THINGS TO CONSIDER

• Life Insurance Policy– SGLI and Family SGLI

• Enroll baby in DEERS– See Tricare Fact Sheet

• Portrait Packages– Don’t let them bamboozle you!

WAYS TO SAVE MONEY

• Do not spend more money than you make• Utilize available resources• Avoid impulse purchases• Clip and use coupons• Print coupons online (red plum, smart source)• Stick to your budget• Identify financial goals and a plan to reach

them. (use worksheet)

MORE MONEY SAVING TIPS

• Sign up for coupons and freebies through manufacturer websites:

• www.refundsweepers.com/baby-coupons.shtml

• http://similac.com/formula-coupons-free-samples

• www.enfamil.com• www.johnsonsbaby.com• www.pampers.com

CLOTH DIAPER DELIVERY

• Baby Care Diaper Service of St. LouisWebsite: www.babycarediaper.com E-mail: www.babycarediaper@yahoo.com

Phone: 314-732-7009Weekly delivery of clean, cloth diapers right to

your front door.

FREE STUFF!

• www.freecycle.org

• www.freesharing.org

• www.freeuse.org

COLLEGE SAVINGS PLANS

• Coverdell Education Savings Accounts: Contribution amount is $2000/year

• 529 Prepaid Tuition: Contributions today are guaranteed to cover tuition costs in the future.

• 529 Savings Plan: A state sponsored investment account for the benefit of anyone-your child, your cousin, your neighbor, yourself

• Don’t compromise your retirement for the sake of your child’s education.

ADDITIONAL FINANCIAL RESOURCES

• www.morningstar.com• www.militarymoney.com • www.cnnmoney.com• www.choosetosave.org • www.tsp.gov• www.parents.com• www.militaryonesource.com• www.savingforcollege.org

RESOURCES

Military Family Life Consultant: 618-381-5400

CDC: 256-2669/2375

FCC: 256-8047

Women Infants and Children: 233-6170

Airman's Attic: 256-3840

Thrift Shop: 744-9441

Correct Assessment Responses in RED 1. For what maximum amount is the Air Force

Aid Society Falcon Loan available?a. $250b. $500c. $750d. $1000e. None of the Above

2. Why was the Air Force Aid Society Falcon Loan Established?

a. To discourage use of predatory lendersb. To combat veteran homelessnessc. To prevent servicemenbers’ overextension of creditd. Unemployment Compensatione. For dependent Support during increased

deployments after Sept. 11, 2001

3. What is the estimated cost of raising a child from birth to age 17 (excluding college)?

f. $179,000g. $207,000h. $221,000i. $308,000j. $342,000

4. 70% of Americans live paycheck to paycheck.a. Trueb. False

5. What is the name of the educational state-sponsored investment account that can be used for the benefit of anyone?

c. 403(b)d. 529e. 2661f. Rothg. TSP

6. When a baby is placed in a rear-facing car seat, the straps should be above his/her shoulders. a. True b. False

7. According to Illinois law, over what weight is a child allowed to use only a lap belt?

a. 25 lbsb. 30 lbsc. 35 lbsd. 40 lbse. A child is never allowed only a lap belt

25

QUESTIONS?