First time parents - savings

VMware
vmgirl

Go to company page VMware

vmgirl
Apr 5 42 Comments

To all the first time parents, how did you all plan for the baby's arrival - financially?

Has the monthly/yearly savings reduced drastically?
Would the savings reduce to just 401k and espp? And maybe little rsu in the beginning?

Or does the savings rate take a major hit once the kid is ready for daycare/playschool/school?

TC: 220k

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TOP 42 Comments
  • ARM
    GoIPO

    Go to company page ARM

    GoIPO
    It does get impacted when they reach the daycare/preschool age. You wouldn’t want them to miss out so that they can socialize and absorb from other kids. There are some tax benefits that help out but of course not enough to compensate for a kid’s expenses. If you aim to save a certain amount annually and the current TC will not meet that the plan on increasing it. If both parents are working then that goes a long way in determining the family’s financial health.
    Apr 5 10
    • ARM
      GoIPO

      Go to company page ARM

      GoIPO
      You may want to work out what’s good enough to save for a comfortable life (goals + emergency fund + retirement). Once, you are able to meet that then even if the savings go down in future that’s okay. Remember we save to live not the other way around. Took us a bit of time to digest that.
      Apr 6
    • VMware
      vmgirl

      Go to company page VMware

      vmgirl
      OP
      Guess it gives more perspective once you go through parenting and the financial expenses
      Apr 6
  • Uber
    UberFellow

    Go to company page Uber

    UberFellow
    9k/month Chinese month-nanny for first three month. Then probably switch to regular nanny which is 5-6k/month. Or parents helping before corona was a thing.

    3k/month toddler kindergarten after 1 yoe.

    1k/month food, stuff furniture misc.

    Altogether costs about 150k/year of pretax tc.

    So you better do more LC and land that fat meta offer
    Apr 5 5
    • Uber
      dbaopqn

      Go to company page Uber

      dbaopqn
      What's a chinese nanny and why do they cost more?
      Apr 6
    • Uber
      UberFellow

      Go to company page Uber

      UberFellow
      In Chinese culture. The first month after giving birth is of critical importance to a women’s recovery and well being in her rest of life.
      There is a dedicated category of caregivers in the Chinese circle that specializes in helping with that recovery & caring for baby too.
      Due to its higher skill requirements and intense nature of work, the rate is much higher than normal nannies.

      https://nanny.fyi/
      Apr 6
  • What will you do with the information that your savings will reduce?

    Be excited about the new baby and don't worry about the savings. You are spending on what's most important in your life.
    Apr 7 2
    • VMware
      vmgirl

      Go to company page VMware

      vmgirl
      OP
      Yeah true! Just planning for it right so don't have to feel the financial crunch when it's time. Like another comment in the thread, have to seal off money for emergency, other commitments. So want to make sure that's taken care of
      Apr 7
    • Your TC is 220k. You don't need to worry about emergencies or financial crunch. You will only bring more anxiety into life thinking about this. Relax
      Apr 7
  • Amazon
    nerd 🥸

    Go to company page Amazon

    nerd 🥸
    Share your tc to receive serious responses. Else everybody will ask you to gtfo
    Apr 5 1
  • Amazon
    yYBj10

    Go to company page Amazon

    yYBj10
    Don’t forget starting 529 college fund soon as baby is born. Invest every month like 401k.
    Apr 6 0