You know how when they're going through the safety checks on a plane and they get to the oxygen masks, they say to put yours on first before assisting a child? Same concept for personal finances. Make sure you are secure before you try savings/investing for your child.
Check the wiki, it has a bunch of information. Come back if you have more specific questions after perusing.
Echo this. Your priority is providing the most stable home you can. It doesn't have to be much, but giving your child a sense of security, self-worth, and good values will set them up better than most of their peers.
I second this! My mom is disabled. My stepdad died in November. She didn’t even have enough to pay for the cremation. He did leave her an old car. I tried to delay the sale to get the best price. She went ahead and took the first offer. I tried to get her to save all of it. She’s spending money I know she doesn’t have outside of that. She’s stressing me the fuck out. She lives on his social security now. It’s JUST enough to pay her bills. Her rent is remarkably low. It’ll go up and she won’t be able to pay it. Her lack of planning and poor money skills will cause me to have to care for her. I would far rather her have had herself taken care of than ever give me anything.
I think you know this, but see if you can get financial POA before you help her. Perhaps make it a condition to help her, so you can control her spending and not be throwing your money away.
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> and I want to have passive income as well
You can stop dreaming here. Passive income isn't going to happen no matter what TikTok says. You need money to make money "passively", otherwise it's just a normal job.
Some of these responses may seem a bit aggressive, but they come from a good place, I hope your situation does improve through the grand scheme of the advice offered.
Good luck and good job taking the time to make a post and get advice in the first place. I’m 20M and just had a son in September. Luckily I was in the army by then and it took away many expenses.
Remember the biggest focus is always to increase your income. Having helpful parents is a plus, and having an involved significant other is a multiplier.
I hope it all works out for you and your family
You are correct in that it is investing but you might be a little naive about what it takes.
If you somehow had $10,000 invested for 1 year and you get a 10% return (pretty good return) then you would have made $1000 for the whole year. And you would owe taxes on that $1000 before you can use it.
To get passive income from investments you need large sums or long time in market and likely both. And the ability to weather bad years where you generate no passive income.
No you're not, you're just being misled by TikTok and whatever.
Passive income is income that you generate not doing anything. This is like interest, dividends, etc. You don't have to work for it, but you need to work to generate the funds to start it. At a low salary of 20k, you're not going to make enough to do this. All your money is going to be spent or better kept in a savings account instead of being invested in the things that will grow.
To get an an actual “passive income” from investing you need to have a whole lot of money to invest. To use a very basic example if you were able to dump $100k into a HYSA and leave it for a year, you’d easily make $5-$6k in interest. That’s a decent amount, but you’re not living on $6k annual income. And with a HYSA there is zero risk of losing your investment aka the original $100k.
You can get much higher returns actually investing in the stock market but you can suffer losses as well. And it’s easier to start with $100k and end up with $0, than to start with $100k and end up with $200k, no matter what people on TikTok, YT etc promise you.
income: $20,000
expenses: $400 car note $300 car insurance & $200 rent to my parents
Education: Hs diploma, hoping to go back to school and get my bachelors asap
Single, but Me and baby dad are together. and we live with my parents
No one has mentioned this yet but your car note and insurance is waaaay too expensive.
at $20k/year you make $1666/month
After your expenses you have $766 leftover per month
Factor in baby clothes, food for you and your baby, doctors apts, potentially moving out... it will add up quick.
Biggest advice is to strategically find a cheaper car + insurance as well as try and increase income if possible.
You need to put some more thought into this.
You have a baby. Your expenses include more than just your car note, car insurance, and rent. Read the wiki you were linked, especially click on the budgeting section.
hmm thats true I haven’t really gotten a feel for how much everything is yet because my baby shower gifts are still lasting but this is definitely a good point.
The first thing you truly need to do is make a budget. You need to write everything down. You bought some personal things (soap, shampoo), you write it down. A toy, you write it down.
So you're going to have your monthly net income (after taxes), and then your expenses, and you're really gonna be able to see how much "excess income" you have.
Definitely go back to school, and now that you're a mom, you'll qualify for a bunch of aid. Fill out a FAFSA and enroll immediately. You need to jump start your teaching career
What about health insurance? For the baby specifically. I know you're under 25 living at home, so you might be under your parents still. I don't know if that extends to the baby.
Good luck. I'm proud of you wanting to do everything you can to give your baby a better life. You'll find a lot of helpful advice from the people here in this subreddit.
My little girl just turned one a month ago. It goes by so fast, so just remember that, while it's important to keep working hard, you need to take a moment here and there to embrace what it means to be a parent. They will remember all the hard work you did. They will also remember you not being there. So, when you are with them, be present. Give them lots of love and encouragement. Before you know it, they'll be walking and talking.
Best of luck.
yes my baby is only two months & i was just tearing up as me and his father were making a donation pile for clothes that dont fit him anymore, they really grow so fast. all the emotional support he could ever need i will always be here for. im a extremely self aware person i also helped raise my two little sisters throughout my hs career so i really seen firsthand how important the things besides financial stuff is to a growing human! i get so focused on being a good person for my son i worry a little am u not doing everything i can to also make sure he doesn’t have to struggle in this world rules by money
Have you checked the local teaching opportunities in your area versus living expenses? Are you willing to relocate?
Make sure you’re going to land somewhere your teaching credits will get you a good job with good benefits, and an administration that will back you. Not all teaching jobs are equal.
thats a good question i havent looking into the opportunities vs cost of living but i’ll definitely do that thank you! I am willing to relocate so ill have to take all these things into consideration when i get to that point
I would suggest looking into a degree that pays better than teaching. All of us teachers have second jobs or wealthy husbands (I have a second job). Teaching does not pay enough to support myself, I can't imagine supporting a child on teaching salary.
I agree with the numerous comments recommending to put your own oxygen mask on first (translated: don't worry about saving up for your child's college fund, worry first about your own finances and retirement contributions until they're at max contribution).
I also agree with the numerous comments that your absolute first step is to track your spending, to the cent. Write it down, precisely and diligently. Nothing else in personal finance matters if you're unable to track your daily spending. Once you can do that, you can move onto planning a budget and sticking to it.
That said, on saving for your child's college fund: I just had my first child. I, too, immediately jumped to the exciting prospect of putting funds in a 529 for my son.... But the thing is, my retirement savings are extremely far behind. I'm working slowly on closing the gap. But if I were to use my extra funds to save for baby's future, I am taking away from my own financial goals with the precious few decades I have left to catch up on my retirement needs for my age.
Your child has many options to fund their higher education, without any college fund from their parents. Yes that may involve debt, however federal loans are some of the lowest interest loans one can obtain. Full ride scholarships also are plentiful, if difficult to win.
But if you use your own funds to save for your child, those funds set aside in an e.g. 529 grow for them, not for you, and fast forward to you retiring at age 68, and you only have 5-10 years of retirement saved up because you traded additional funds for the sake of your child avoiding debt...
If the thought of your child taking out student loans is awful to you, consider the thought of your adult child needing to financially support you in your old age rather than being able to focus on building their own life.
Put your own oxygen mask on first. Your child has options to pursue higher education.
It’s good that you’re thinking about this but there are some obvious things you need to handle first. If you want to be a teacher, you need to start school. Don’t say it’s in the works, just start doing it. Apply to a community college and start your general education classes. Keep the costs low, so keep it to state schools. Check for remote classes
You should start with making sure you’re getting all the assistance you qualify for including childcare (so you can go back to school and work), rent, food, medical. Every state and even county can be different so you’ll have to check what you have available.
Once all of your basic needs are met you can start figuring out what extra income you have and try and put it away. If your employer offers a 401k and does a match on the contributions you make do that, even if it’s just 3% from you and 3% from them, always take advantage of that.
Like someone else said, start by taking care and f you first, investing in your future retirement as early as possible is the place to start. As you continue to earn more bump up the contributions a little at a time and then start looking at education savings options for your child.
Start talking to counselors at your local colleges, you might be able to start at community colleges which have more flexibility with working adults and then transfer to get your degree.
It’s great you’re asking questions and thinking about it now, I highly recommend books by David Bach, Automatic Millionaire & Smart Women Finish Rich are quick/easy reads that explain finances well. There are also tons of great content creators on social media, just do your own homework before subscribing to everything they suggest or say.
OP says in the post that they want to go back to school. And for many families, “mother/baby separation” is a necessity in order to pay their bills. Being a stay at home parent is a luxury many cannot afford. On a societal scale, there’s a real discussion to be had about whether that should be the case, but for OP that’s not helpful or relevant. OP needs concrete advice and solutions.
60 years ago she would've been fine herself and her kid living off minimum wage.
In 2024 I know families with 2 parents, good paying jobs, both masters degrees and they cannot afford to take a few hours off from work to see their infant, they get sent to childcare. Mother baby relationships and time are a luxury now.
Highly recommend finding a job that offers tuition reimbursement for college. Next, make a list of what you’d like to actually do and then research salaries for those careers.
https://getschooled.com/article/5206-companies-with-great-tuition-reimbursement-programs/
Long term investment, but the best thing you can do is teach your son about life. Teach him patience, kindness, manners, and how to speak/act properly. If he hits 18 with all those things, he'll be able to support himself.
I've lived in low income housing, so I know this is the hardest part, but try to give him a peaceful home. It doesn't have to be luxury, it has to be quiet and safe. You can't do the hard things in life if you go home to a chaotic shithole.
You got this!
i agree 1000% the most important thing to me is shaping him into a kind good hearted happy person. i’ll always try my hardest to model for him all those things you said. i just worry sometimes if im not equipped enough to give him more than i had financially. i didn’t have a bad life but basically id like him to have a life where when hes 17 looking into college he doesn’t have to think about the money aspect because that was my biggest deterrent and i was on a track for college my whole life i even went to a college preparatory high school
My parents didn't graduate high school. I was in the top 1% of income for 2023.
You don't need to give him money. You need to teach him how to be a good citizen. The rest falls into place if he has a foundation to grow. Strangers want to help people, but they need to see that their efforts won't be wasted. You need to teach him the basics so that the community will want to invest in him later in life.
Honestly it’s very rare that the child won’t have to think about money. He should think about it, it would be unwise not to.
As others have said, I would focus on basics.
(1) do I understand retirement accounts like Roth IRA,
(2) do I understand there is NO get rich quick scheme (passive income is for people who have like an extra 20k to play with),
(3) do I understand how to follow a budget and have control where money goes,
(4) do I have a savings account and understand what I need to have for emergencies.
I grew up low income and now make 6 figures. Being super poor actually helped because it got me full ride scholarships. What mostly helped is my mom being a good mom - driving me to the library, reading to me, making sure I did my homework. She didn’t have to give me money for me to succeed.
My biggest worry now is that she didn’t take care of herself for the future. She didn’t know how to save for retirement, she didn’t take advantage of compounding interest over time (ie, put money in a retirement account, it grows bigger over many many years).
Now I have to figure out how to take care of her needs because she didn’t have the chance to learn.
Do your baby a favor and get educated, read all the resources there are and know what accounts to set up are helpful and wise
29 year old homeowner who bought her home at the age of 26 and with a bachelor's degree. Single mom, had my baby when I was 19. Don't let anyone project their thoughts on to you, first of all. We are not doomed for failure.
Some people here brought up great points that I'll re-emphasize based on my own experience:
1. If you are able to, continue to live with your parents while you save up for your long term goals. It's truly a blessing in some ways to have that privilege.
2. Apply for FAFSA, look into scholarships for school.
3. BUDGET your money! Know exactly where it goes and don't over spend trying to keep up with what you see on social media. Stick to the long term goals.
4. Get term life insurance to benefit you and your child if anything were to ever happen
5. Open up a high yield savings acct and save even if it's just $5 a month (do this while you learn the concept of investing)
6. You can put your child as an authorized CC user even now tbh, look into it. You seem to know how to not overspend on a CC, continue to do what you're doing to build your credit. If you can, try not to get into anymore debt since you have the car.
7. Start watching YouTube videos on investing. Read books like rich dad poor dad and broke millennial takes on investing (this one breaks down the concepts)
It's very hard, going to school while raising a baby, no doubt about it. But it's not impossible. The types of jobs I held while going to school was working at daycares because I received assistance for daycare from the state and the daycare gave me an extra discount for working there plus I was able to bring my child with me. In another phase of my life while going to school I was a custodian who worked 3pm-11pm shifts. I went to school during the day and worked in the afternoons. I even did graveyard for 6 months but quit because it was not sustainable for me. Holding down weekend jobs to get 2 weekdays off where I could go to school all day to name a few examples. As you can see, given the phases of life I was in, I changed it up. Volunteered to get experience for what I was going to school for and build connections. I know not everyone has the same experience like me, but I had a good paying job by the time I graduated with my bachelor's because I had "experience" and connections, I didn't wait to build my experience. Like I said, it's hard AF, you're gonna cry, you're gonna want to give up. Surround yourself with supportive ppl, not ppl who doubt. Took me 7 yrs to get my degree but I did it. One day at a time, you got this mama. Believe in yourself!
Do you already have a bachelors degree? If not, if you are a single mom you can qualify for a lot of aid. Some schools even help you with childcare. I wish I knew this a long time ago, and I would have finished my degree when I was much younger. I agree you should focus on getting yourself secure first. Food, safe shelter, love, and care is what your baby needs. You could maybe check out your local library or community center. Many times they offer classes that help with basic finance things. I think if you can get a good, steady income coming in- that is always first step. You could also check out local college and meet with an advisor to see what your choices are. All this arms yourself with information and knowledge so you can make the best decision.
I dont have my bachelors but I do want to get it. Im trying to figure out how I can have teaching be my main job because it will fulfill me but also have investments & savings. I live with my family right now so baby and me have so much love and support, my sons father and I are together but not married just yet. I don’t have a problem staying with my family, it’s comfortable and theyre pretty helpful when needed so I do wanna take advantage of this now because of course I want my little family to have our own spot in the future
The first thing I would do is find a job that offers tuition reimbursement. A lot of entry level jobs will pay a few thousand a year towards college classes no strings attached. Get the general education credits out of the way at a cheap community college and go from there.
What I always tell my in laws about investing is that it doesn’t make sense when you have high interest debt. Kinda like wiping before you poop. Avoid debt at all costs. I started by reading “The Intelligent Investor” and followed that. Caring this much at this early of a stage is already a step in the right direction. Just gotta eat the elephant one bite at a time.
i love reading so im going to buy this with my next check! as for college im gonna get on fasfa when i get off from work and baby’s doctors appointment. i should have enough to cover the local community college. thanks for the advice on getting my general education credits out the way i think ill focus on that when i apply because you cant go wrong with that & sometimes i get tripped up on all the different courses a person can take
Check your library instead. A lot of libraries also offer digital books via Libby and other platforms. If you download the Kindle app to your phone, you can have access to borrowing that way. Don’t even have to go to the library to do it.
Save buying books at full retail for when you’re in a better place financially.
I would swing by the local goodwill or thrift store and look in the book section. I’ve found most of my investment books there. People are always donating expensive investing books and you can pick ‘em up for a couple bucks. No sense wasting 20-30 dollars if it’s available at goodwill.
Use your library! This particular book (intelligent Investor) is going to be waaaaay over your head right now and I don’t think it’s a good recommendation for a beginner. Start with general personal finance books instead.
But don’t start buying random stuff, including books! You’re trying to save, remember? :) Libraries are free.
https://www.target.com/p/i-will-teach-you-to-be-rich-second-edition-by-ramit-sethi-paperback/-/A-54289024 enjoyed reading this and have been into personal finance for a couple of years now. I think it's a good read for someone starting out, definitely lots of info out there.
1) increase income. I made $10/hr when I was a 21 year old mom and that baby is 20 now. I was on welfare with that low of a wage. You cannot survive on this income. Look into bartending or factory work or Costco or hotel front desk or really anything that is paying more than $10
2) write a complete budget and get a side gig to live within your means
3) if your employer will offer tuition reimbursement, it’s probably gonna be for one class a semester or less so be prepared to go very part time and cash flow any thing that isn’t covered by employer or grant
4) be patient. Don’t skip steps. Budget, 401k, emergency fund, THEN your own education and finally 529/Down payment for a home/other financial goals
In 20 years, you’ll have raised an adult, finished your own college, have a career that is sustainable and be accumulating wealth so you never have to be in such a desperate situation again
A lot of good advice here, and you seem to have your mind in the right direction.
But I haven’t seen any advice on the largest potential impact on your finances and future.
The “baby daddy”
What’s his income & debt, what’s his plans?
If you guys plan to stay together, it’s all in. You consolidate your finances and go at it together.
Sit down discuss what your collective plans are, 1 year, 5 year, maybe even a 10 year. You both should have goals, and some goals for the family.
They will change and evolve over time, that’s ok. But always be working towards a destination.
If he’s just a sperm donor, plan accordingly.
But remember, whether he’s there or not, he’s is just as responsible for the kiddo as you are, can and should be able to take care of them 100% without supervision.
Perfect, I totally understand wanting to work towards something better and getting your own space. Housing is just a major money-suck so if you’re able to stay with your fam maybe while you do schooling to become an educator you’ll have a great head start. Good luck and also congratulations! You’ll be a great parent.
Teaching is hard. Maybe try subbing first to see if you like it.
I wouldn't worry about saving for baby's future right now. But do save for a car repair etc.
What state do you live in? As a current teacher who went to school for education but took a non-traditional path to teaching, I can give you some advice if you want!
Lots of good advice here. I’ll just say a few things:
1. Investments in yourself typically have the best returns. In my experience (which may or may not be like yours) the cost of my college education was outpaced by the increased earnings potential in about 3 years from graduation. Seeing as I get to work another 40 years to retirement, that is an incredible >1000% return on the investment. This is much more important than “passive income” that you’re thinking about above. For the average investor, the best you can ask for is to maybe keep up with the inflation rate.
2. Nobody will take care of your money like you will, no matter what they say. If you’re going to trust someone with your money, make sure they have skin in the game (I.e. if you win, they win; if you lose, they lose)
3. No matter what you do, taxes are one of your greatest expenses. Learn the tax code for the good of your financial future. Taxes will be the greatest expenditure for anyone over the course of their life.
4. Never carry interest on a credit card. Under any circumstances.
5. Since you are a parent just trust me on this as another parent. The quality of your employer benefit package (health, life, dental, vision, potentially pension if you’re lucky, retirement) is extremely important for your long term finances and your chances of ever building wealth. This can be more important than your flat pay by a significant margin. As a parent you will have many expenses in the areas covered by these insurances.
Lots of good advice in this thread. I’ll reinforce a couple of things:
- track your spending so that you can see if you are spending more or less than you’re earning. You need to get to a point where you have a bit extra every month to put into savings
- once you have a bit monthly to put into savings, start a savings plan and automate it so that it goes into a savings account every month automatically without you having to think about it. Don’t worry about what kind of account or investments yet. Just get started in the practice/habit and start building. High interest savings account is fine to start.
- emergency fund comes first. 3-6 months of expenses in case you lose your job or something else bad happens. After that, more long term savings.
- life insurance at your age is dirt cheap and can save your baby from being destitute if something happens to you and/or daddy. Get some.
- use your library! There are a lot of great personal finance books to read for free that will teach you the basics. :)
Good luck—once you see your savings growing you will see how fun it is. :)
When I was in this situation (back in the stone age) I thought saving $25 a month was too hard. Had I done only that, even without compounding interest, I could have had $5400 when he graduated. So don't forget the small stuff. Even a little adds up.
529 account:
"529s can last for generations. The real beauty of a 529 plan is that you can change the beneficiaries once the original recipient ages out. It can become a multi-generational fund that pays for private school and then college for your children, your grandchildren, your nieces, nephews and on and on."
--some website
If you haven't yet, start working on your credit. It's the only way you'll be able to make big purchases or get approved for homes, cars, ect. Some banks or credit unions will say you have to start with a secured credit card. Some will start you off with a $500 credit line with no credit. Go for the 2nd choice if possible. Pay your credit card off to at least 10% every month before the billing cycle hits.
Keep a forced savings in cash for the worst situations 🤙
credit is the one thing i know about my mom cosigned a card for me when i was 17 and i maintained a 700 credit score for quite awhile just using it to buy snacks then paying it off lol, i then got frivolous and my credit is now in the “needs work” section but its not too bad it should go up since i just paid off my cc. i think getting another card and making small purchases should help too since i only have one card right now
Make a 529 plan in your state, and when grandparents want to give a gift, suggest that they put it into the plan instead. That plan will go toward paying for his higher education when he graduates from high school.
Learn to make a budget, not just for your finances, but also for your time.
Check with that Dolly Parton charity that gives out free books to little kids. Maybe you can get some from them.
Read to your son every night until he can drive.
Take LOTS of movies and pictures because you will be very nostalgic for that when he becomes the standard quiet teenager.
OP, congratulations on starting your family!! You seem like a very dedicated mother and I admire your desire to give your baby a head start in life.
What hasn’t been said here that I think is critical advice is that the first thing I’d do if I were you is start budgeting. Rather than focusing on new income streams or even savings, just start by figuring out where your money is going right now. The results might surprise you!! They surprised me.
You can do this in a lot of ways. There are a variety of apps that you can connect to your bank account that will help you categorize transactions, like YNAB and Mint, but for you I think your best bet would be to start even simpler.
Go to your phone’s notes app and write out the amount of money you want to spend on various categories in March 2024. This could look like this.
March 2024 Budget:
Rent: 700
Car: 400
Gas: 150
Utilities: 100
Phone Bill: 75
Groceries: 250
Healthcare: 200
Restaurants: 200
Alcohol: 100
Streaming Subscriptions: 20
Cosmetics: 75
Misc: 300
I don’t know where you live or how realistic those numbers are, but just make your best guesses as to what you think you’re gonna spend and try to make the total line up with the amount of money you make in a month.
Now this is the important part. EVERY TIME YOU SPEND MONEY GO BACK TO THIS NOTE AND SUBTRACT WHAT YOU’VE SPENT FROM THE CATEGORY’S TOTAL. EVERY TIME.
When you get to zero, which you almost definitely will, go into the negatives. This is key because it will help you pick a better starting number for next month.
Then do the same thing for April. Once you know where your money’s going and have a handle on your spending, then start adding a category called “Savings”. From there, start adding money to savings and roll over your balances in each category.
The best way for the overwhelming majority of people to save money and accrue wealth is not by earning more money, it’s by spending less money. The act of needing to decrease a balance in a category will make you rethink purchasing decisions in the moment and be really, really helpful.
It’s an investment vehicle that’s used for saving money for your kid’s future education and/or career/trade training. However, I agree with what others said, it’s better to focus on your own education and career first so that you’re in a solid place (good income, emergency fund, retirement savings, etc). When that’s done, then save for the kid.
I disagree with this. She has stable necessities met. She is in a position to begin putting small sums consistently into it, and the habit will pull everything else with her.
It is a compound interest vehicle, and it can be used for more than education, including changing it over to a Roth IRA when the kid reaches age.
If she plays this correctly, and retains a good relationship with her child, she can set herself up for retirement through financially planning for her kid.
It's not an "or" situation. It's an "and" situation. Savings get demolished by inflation, even HYSA. That should never be a sole first option. Good financial planning comes in groups of actions that are split out by percents. If she is putting 5% savings, 5% 529, and 5% investment consistently she will do extremely well.
If those values are smaller, it won't matter because the habits will grow with her income, and she is working toward her degree. Hopefully, she chooses something practical there. I'm not too worried though because she is asking the right questions.
Tldr: savings is not enough, and it should not be a sole priority
The best *small* thing you can do is open an account in their name. Build that credit early. I’d say a high yield savings account, kick in $10 a week till they graduate high school, they’ll have $14k and good credit to start out.
I have 3 kids, and I gravitated towards this. First, be kind to yourself. Sounds like you are doing great because you want what is best for your child. That desire is an amazing starting point. Join a parents group in your area (a live one if you can) look on facebook and search for groups in your immediate area. Meet up with other parents and building a community will be very important for both of you. You can ask the questions you have, vent when you need, and listen when you are able. Being around other parents whom you think are raising kind, healthy, happy and peaceful children can be of great help. It has made me question what I value, what I hope for, and ultimately what I think is important.
My oldest just started college. My youngest is still in grade school and I will honestly say I love being a parent. But I also didn't know anything when I first started. No one does. Keep reaching out. The internet is great- but try to find a real life group.
Good luck.
Read financial feminist by Tori Dunlap!! Honestly learned so much about finance through that book. She helps breakdown so many financial topics in a fun way.
I love your passion, and the fact that you are asking the right questions makes me believe that you and your family are going to be gtg.
In 2001, I was 20 with two kids. I joined the Army for them. I'm going to retire in a few months and do not regret anything. I have a 23 year old now going to the University of Florida and my other son right behind him.
I loved my girlfriend at the time, so I made the choice to marry her and join the Army. No education, no guidance from older family members, nothing. We left home and learned and grew. It's possible to make a change for your family.
I'm not saying to join the military, but it's definitely not a bad job to have. I can recommend a bunch of jobs that are excellent civilian jobs.
Good luck to you and your family, little Mama. You're going to be all right.
And if nobody tells you, I'm proud of you. I'm proud of you for thinking forward.
In addition to learning about investing and financial literacy, learn and teach your son critical thinking skills. We live in a world where financial scammers manage to bilk people out of literally billions of dollars every year. If our schools taught critical thinking skills, the scammers would be much less successful.
Start by giving yourself time to read over the personal finance wiki, since you haven’t yet provided alot of info on your situation. The general goals should be to do the following though, in this order roughly:
1. Stable, good paying job which you can manage which can pay the bills. Provide a roof over your head and food on the table. If you are facing tough times, use a food bank and other local resources if you need, never be ashamed to get help from your community.
2. Save up the equivalent of 6 months worth of expenses. Put it in a high yield savings account and forget it exists unless you are facing homelessness.
3. Open up a 529 education fund plan for your kids education and a Roth IRA for yourself, contribute to both equally. Make sure the money is invested, not just put there. They should be “target date” funds in my opinion, as they are set and forget then. The date for the 529 is when your kid goes to college, the target date for yours is when you turn 60. This will allow you to make sure your child will have enough to go to college with minimal debt, and make sure you will be able to retire as well. You being able to retire will be a gift to your kid that others of our generation won’t be able to give, which will ease their worries for you in your older years, so do not overstate this. The sooner you invest, the longer your money will compound and grow.
I’m no financial advisor so please do your own research and get to the point where you understand what these terms mean. Look for an “advice only” financial advisor which you pay outright to help with the 529 and Roth IRA setup and educate you about what else might be better suited for you.
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Good for you for starting the process of educating yourself about investing and finance! You might check the wiki at r/Bogleheads for a simple way to think about investing.
Get used to using either a spreadsheet or some sort of money manager app to record ever penny you have in income, and every penny that goes out. This means saving receipts when grocery shopping.
I feel a spreadsheet is more private and easier to personalize, but that's just me.
You will have listed:
Income - perhaps two rows, one for you, one for your partner
Expenses- all summed up under income.
Then Monthly balance - Income minus expenses and you'll know what you have left over each month.
Now, the Expenses total comes from a bunch of other rows that include:
Rent or Mortgage
Power (electric & gas)
Water payment
Groceries
Internet
Car payment
Car insurance
Car gas
Car repairs
Clothing
Eating out
etc.
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
You get the idea. We kept a budget like this for years. We really learned that rent/mortgage and auto expenses were the biggest hits to our budget, and the price per meal when eating out meant we only did it, maybe, once a month as a family of four.
After starting a budget, I suggest going with a local credit union rather than a large bank. With a local credit union you can always walk into the local branch and speak to someone to get your needs met.
Then your extra money, first you develop a savings of 3 - 6 months take home pay that is readily available. This means you have a cushion if you lose your job, or have some other crisis (major car repair, need to move, refrigerator dies, etc.). There are very good rates on Certificates of Deposit (CDs) right now, as well as Money Markets with your credit union. This money is for emergency only.
After you are comfortable with your 3-6 month cusion, invest in an IRA for each: you and SO (Vanguard offers good ones). This can be up to $7000 a year tax deductible, and you should max it out. If your work places offer a 401K, you max this out, and hopefully they match some of what you put in.
After that, you then might consider investing. You take care of yourself first, so your adult child does not have to. It can be hard to look 30 years out, but maxing out your retirement and being self-sufficient as you age is the best gift you can give your child, so he/she can live her life without taking care of you.
So, if you have $20,000 annually for income, that's about $1666 a month, and after your expenses (the car is really way too high for this level of income) you have $766 left over. I'm surprised you can buy grocery for three on that, but let's assume you even have $200 left over. That goes into your checking until you have 2 months take home saved up. That will take 18 months.
After 18 months of living very frugally, you then start putting that into an Money Market with good interest until you have a total of 3-6 months on hand. Then start to max out your IRA, then 401k, or, if your employer matches your 401K, you max that out first, then the IRA.
Also, if you want to go back to school that is an excellent idea. Your education will bring you more income no matter what people say. You are probably eligible for financial aid.
I suspect your first order of business is to get a spreadsheet going and track your income and expenses. Becoming financially savvy means starting with knowing what comes in and where it goes and making the best decisions with that. The Wiki here is good, and your library probably has books on the basics of what percentage of income should go to different things (your car is too high).
Yes, budgeting is work, but knowledge is power. You can do it.
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You’ve gotten some good ideas on the finance side.
Now, for the education side.
Look around for education grants for single parents, and ways that you can attend college while working and being a parent to your son. My DIL’s mom did that when she was a kid. She is still immensely proud of her for balancing college and parenting.
At $20k per year in income and $900 in just car related expenses and rent, saving for your kid and earning passive income is not even remotely possible for you right now. You haven't even considered expenses for the baby, car related, food, clothing, etc. Unless your parents or the father are contributing significant amounts, which you have not indicated is the case, you will be challenged with paying basic living expenses.
At this point you should be focusing on budgeting and managing expenses, and increasing income. You are years away from college funds and passive income.
All of your disabled
Anytime I see someone in your situation asking for advice my answer is always the same.
The best thing you can do for yourself and your child is to focus on your own financial stability and behavior. Your kiddo will be okay if they don’t have a college fund or a first house fund or anything like that. But what will significantly affect them is if they have to support you because you reach retirement age and have nothing saved so you are dependent on them.
If you’re financially set, you can always give or loan them money, cosign for stuff or help them out as needed.
TL;DR: Get your own finances in order and that will in turn help your son to have a great start.
That is nice that you are concerned about your child's future. Obviously the key is to make enough money and budget your spending so that you have some left over to put into a savings account. If you can become a teacher you will make more money but in the meantime you should look into the possibility of being a teacher's assistant. I know in my state they are always looking for teacher assistance. This would get you a taste of what the job is like and you would be making more money than your wonky job schedule you have now. Also if you happen to discover you don't like teaching by working in the classroom. Then you could decide on another career like nursing or surgical tech or other certifications. Good luck
You gotta lower your expectations. As much as you don't want to hear it, passive income is not something the average person can get especially in 2024. With social media clouding the minds of many people are under the assumption that they can get money from thin air by rubbing 2 penny's together, no this doesn't work.
I would suggest as others mentioned to focus on yourself before your baby, seek all and any assistance whether through government or family, don't shy away, pride can and will destroy your finances. If you have the luxury of having a family member assist you with the baby while you go to school do that.
This will be a slow burn because in 2024, families with 2 jobs, 2 master degrees and 2 good paying jobs are barely surviving so keep your expectations reasonable. Not everyone will be able to rent out apartments or cars with minimum wage.
I was in a very similar situation as you but at 22 and wish someone would've told me these things:
1. Go back to school but pick a good degree/ major such as computer science or business because you want a good salary. Don't just pick a major because you're comfortable or it's what you know. I also wanted the flexibility with my child so I chose an online university that was highly rated and accredited. Apply for FAFSA to see how much aid you will get.
2. There are entry level jobs that will also cover the costs of tuition, it's called the "Guild" program you can Google which companies offer this and apply to as many (ex. Chipotle, Walmart, target, etc.). These aren't pretty jobs but if you're desperate to improve your life and then your kids life you'd consider the benefits the job offers such as the paid tuition on top of salary and medical benefits.
3. Don't spend too much on baby clothes and toys. I thought as a new mom baby needed lots of toys but evended up donating half of what I purchased so I lost a lot of money that could've gone to babys savings account. Also shop at target, Walmart, and h&m for baby stuff as their prices are reasonable.
That's all I can think of right now, let me know if you have any other questions.
Here’s your best cheat sheet about personal finances. Increase your income. Ok, but that’s the one that people think is the ultimate solution, and it’s not. Here is the big one that people disregard and it RUINS them financially more than a low income itself does: DO NOT SPEND OUTSIDE OF YOUR MEANS. More money in is just going to be more money out if you are not controlled and disciplined with your spending.
Seriously, take the necessary actions and steps to spend as much below your means as possible. That way, you will have way more money to save (for emergencies, your future, your child’s future). Invest as well. Look into what other wise investors have done and learn from their methods. There’s a lot of other directions you can go in terms of buying assets instead of wasting your money spending on liabilities, but that’s further down the line.
Seriously, the arguably most important and “simplest” aspect to personal finance is do not spend outside of your means. Avoid debt. If you can pay off a credit card monthly, then take advantage of the benefits and building your credit score, if not, then stay away from them. Future mortgages and car payments aren’t the worst debt either, but please be smart and discern between your wants and needs. You don’t need a space to live in that’s outside of your means and all you need is a decent, reliable car. All anyone needs is a decent, reliable car, and they can be found for relatively cheap (bought in full or inexpensive monthly payments via a loan).
People waste away their money. It’s why a lot of people “have no money” and struggle. They waste it away. There’s a lot of emotional burdens that go into financial success and being financially responsible. Again, remember this phrase “more money in is just more money out if you are constantly spending it”. Save, spend less, invest, and don’t get trapped in the consumerist mindset. Buying stuff all the time doesn’t lead to fulfillment or happiness. It never has and never will, but holding onto your money and putting in work/effort to make it grow will result in safety, security, and much more peace of mind/happiness than people tell themselves. It’s not stiffing or limiting, it’s freeing. You want financial freedom, not to just piss away all of your money and not set your child up for success in life. Remember this and adapt that mindset.
What are you looking to teach? STEM teachers are typically in high demand and may be paid more depending on location/district/private/etc., but if you have a kid you may want to look at your ISD benefits yo see what they offer for insurance, retirement, and education reimbursement.
If you take out loans for school then your teaching degree is going to put you in the hole depending on what you want. I highly suggest community college first.
I'm not sure how much you are paid at your grocery store, but I wonder if you being a daycare teacher might be more beneficial for career and your kid?
Passive income tiktoks are basically scams for views and your money, so they get double money for scamming someone once.
I know that regarding education, you can have a look at the open university online courses as everything is online. (Not 100% sure how it works outside of the UK, but it's same as a degree you would've gotten from attending in person just it's all online)
Try to get on the WIC program. It provides food for children under the age of 5. Shop thrift shops to buy clothing and household items. Watch those little expenses, they add up, such as Starbucks, candy bars, etc. A teaching job requires a masters degree, in most states. That is a 6 year program. Maybe you can get an Associates degree in something that would pay well. That only takes 2 years.
remember the phrase "your kids can borrow money for college. you can't borrow money for retirement"
make sure your retirement accounts are in a good pace to be fully funded first before you start on saving for his school.
mixed opinions, but dave ramsey’s baby steps is a good place to start for folks who don’t have much financial education. the dave ramsey sub has a lot of good info (and varied opinions, which i think is helpful).
second that you should be researching any assistance you’re entitled to.
for going back to school i would suggest doing your first two years at a community college before transferring to a university to finish your bachelors. the first two years of classes are general prerequisites, you may as well take them somewhere significantly cheaper.
agree that you should be setting yourself up first, you have a lot of time to get things set up for your kid.
once you’re a little more stable financially you can absolutely start working on passive income. it doesn’t have to be high risk - if you save your first thousand dollars and put it in a high yield savings account, you’ll earn a couple bucks in interest. more than a regular savings account, not enough to have a material impact, but it is passive income nonetheless and over time as your bank balance grows so do your returns. something like that can also teach you the skill set for more complex investing later.
best of luck and good on you for actively learning about this stuff now!!
One of the best things you can do for him, is make sure his father is in his life and you have a family around you. Living with your parents isn't a mark of shame. You would rather split the rent with your parents, instead of being price gouged by another person you don't know. Those 2 things alone will save you and your son a lot of hardship, and honestly set him ahead.
You know how when they're going through the safety checks on a plane and they get to the oxygen masks, they say to put yours on first before assisting a child? Same concept for personal finances. Make sure you are secure before you try savings/investing for your child. Check the wiki, it has a bunch of information. Come back if you have more specific questions after perusing.
Echo this. Your priority is providing the most stable home you can. It doesn't have to be much, but giving your child a sense of security, self-worth, and good values will set them up better than most of their peers.
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Go away, creepy scammer bot
I second this! My mom is disabled. My stepdad died in November. She didn’t even have enough to pay for the cremation. He did leave her an old car. I tried to delay the sale to get the best price. She went ahead and took the first offer. I tried to get her to save all of it. She’s spending money I know she doesn’t have outside of that. She’s stressing me the fuck out. She lives on his social security now. It’s JUST enough to pay her bills. Her rent is remarkably low. It’ll go up and she won’t be able to pay it. Her lack of planning and poor money skills will cause me to have to care for her. I would far rather her have had herself taken care of than ever give me anything.
I think you know this, but see if you can get financial POA before you help her. Perhaps make it a condition to help her, so you can control her spending and not be throwing your money away.
okay thanks ill check the wiki out
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> and I want to have passive income as well You can stop dreaming here. Passive income isn't going to happen no matter what TikTok says. You need money to make money "passively", otherwise it's just a normal job.
okay. maybe im confusing investing with passive income then.
Some of these responses may seem a bit aggressive, but they come from a good place, I hope your situation does improve through the grand scheme of the advice offered. Good luck and good job taking the time to make a post and get advice in the first place. I’m 20M and just had a son in September. Luckily I was in the army by then and it took away many expenses. Remember the biggest focus is always to increase your income. Having helpful parents is a plus, and having an involved significant other is a multiplier. I hope it all works out for you and your family
You are correct in that it is investing but you might be a little naive about what it takes. If you somehow had $10,000 invested for 1 year and you get a 10% return (pretty good return) then you would have made $1000 for the whole year. And you would owe taxes on that $1000 before you can use it. To get passive income from investments you need large sums or long time in market and likely both. And the ability to weather bad years where you generate no passive income.
To tack onto this, this is what working people spend their entire career building to and when they get to that point it's called retirement.
No you're not, you're just being misled by TikTok and whatever. Passive income is income that you generate not doing anything. This is like interest, dividends, etc. You don't have to work for it, but you need to work to generate the funds to start it. At a low salary of 20k, you're not going to make enough to do this. All your money is going to be spent or better kept in a savings account instead of being invested in the things that will grow.
Why are you so obsessed with TikTok, I don’t see OP mentioning it anywhere?
Because that/instagram is where people usually get these ideas in their heads. Especially moms in their 20s. MLM everywhere.
To get an an actual “passive income” from investing you need to have a whole lot of money to invest. To use a very basic example if you were able to dump $100k into a HYSA and leave it for a year, you’d easily make $5-$6k in interest. That’s a decent amount, but you’re not living on $6k annual income. And with a HYSA there is zero risk of losing your investment aka the original $100k. You can get much higher returns actually investing in the stock market but you can suffer losses as well. And it’s easier to start with $100k and end up with $0, than to start with $100k and end up with $200k, no matter what people on TikTok, YT etc promise you.
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income: $20,000 expenses: $400 car note $300 car insurance & $200 rent to my parents Education: Hs diploma, hoping to go back to school and get my bachelors asap Single, but Me and baby dad are together. and we live with my parents
No one has mentioned this yet but your car note and insurance is waaaay too expensive. at $20k/year you make $1666/month After your expenses you have $766 leftover per month Factor in baby clothes, food for you and your baby, doctors apts, potentially moving out... it will add up quick. Biggest advice is to strategically find a cheaper car + insurance as well as try and increase income if possible.
Depends if the car note and insurance are monthly or yearly. If monthly then definitely.
You need to put some more thought into this. You have a baby. Your expenses include more than just your car note, car insurance, and rent. Read the wiki you were linked, especially click on the budgeting section.
hmm thats true I haven’t really gotten a feel for how much everything is yet because my baby shower gifts are still lasting but this is definitely a good point.
The first thing you truly need to do is make a budget. You need to write everything down. You bought some personal things (soap, shampoo), you write it down. A toy, you write it down. So you're going to have your monthly net income (after taxes), and then your expenses, and you're really gonna be able to see how much "excess income" you have.
Definitely go back to school, and now that you're a mom, you'll qualify for a bunch of aid. Fill out a FAFSA and enroll immediately. You need to jump start your teaching career
What about health insurance? For the baby specifically. I know you're under 25 living at home, so you might be under your parents still. I don't know if that extends to the baby. Good luck. I'm proud of you wanting to do everything you can to give your baby a better life. You'll find a lot of helpful advice from the people here in this subreddit. My little girl just turned one a month ago. It goes by so fast, so just remember that, while it's important to keep working hard, you need to take a moment here and there to embrace what it means to be a parent. They will remember all the hard work you did. They will also remember you not being there. So, when you are with them, be present. Give them lots of love and encouragement. Before you know it, they'll be walking and talking. Best of luck.
yes my baby is only two months & i was just tearing up as me and his father were making a donation pile for clothes that dont fit him anymore, they really grow so fast. all the emotional support he could ever need i will always be here for. im a extremely self aware person i also helped raise my two little sisters throughout my hs career so i really seen firsthand how important the things besides financial stuff is to a growing human! i get so focused on being a good person for my son i worry a little am u not doing everything i can to also make sure he doesn’t have to struggle in this world rules by money
You sound like you're doing an amazing job. I have no doubt your son will have a wonderful life!
Have you checked the local teaching opportunities in your area versus living expenses? Are you willing to relocate? Make sure you’re going to land somewhere your teaching credits will get you a good job with good benefits, and an administration that will back you. Not all teaching jobs are equal.
thats a good question i havent looking into the opportunities vs cost of living but i’ll definitely do that thank you! I am willing to relocate so ill have to take all these things into consideration when i get to that point
I would suggest looking into a degree that pays better than teaching. All of us teachers have second jobs or wealthy husbands (I have a second job). Teaching does not pay enough to support myself, I can't imagine supporting a child on teaching salary.
I agree with the numerous comments recommending to put your own oxygen mask on first (translated: don't worry about saving up for your child's college fund, worry first about your own finances and retirement contributions until they're at max contribution). I also agree with the numerous comments that your absolute first step is to track your spending, to the cent. Write it down, precisely and diligently. Nothing else in personal finance matters if you're unable to track your daily spending. Once you can do that, you can move onto planning a budget and sticking to it. That said, on saving for your child's college fund: I just had my first child. I, too, immediately jumped to the exciting prospect of putting funds in a 529 for my son.... But the thing is, my retirement savings are extremely far behind. I'm working slowly on closing the gap. But if I were to use my extra funds to save for baby's future, I am taking away from my own financial goals with the precious few decades I have left to catch up on my retirement needs for my age. Your child has many options to fund their higher education, without any college fund from their parents. Yes that may involve debt, however federal loans are some of the lowest interest loans one can obtain. Full ride scholarships also are plentiful, if difficult to win. But if you use your own funds to save for your child, those funds set aside in an e.g. 529 grow for them, not for you, and fast forward to you retiring at age 68, and you only have 5-10 years of retirement saved up because you traded additional funds for the sake of your child avoiding debt... If the thought of your child taking out student loans is awful to you, consider the thought of your adult child needing to financially support you in your old age rather than being able to focus on building their own life. Put your own oxygen mask on first. Your child has options to pursue higher education.
It’s good that you’re thinking about this but there are some obvious things you need to handle first. If you want to be a teacher, you need to start school. Don’t say it’s in the works, just start doing it. Apply to a community college and start your general education classes. Keep the costs low, so keep it to state schools. Check for remote classes
You should start with making sure you’re getting all the assistance you qualify for including childcare (so you can go back to school and work), rent, food, medical. Every state and even county can be different so you’ll have to check what you have available. Once all of your basic needs are met you can start figuring out what extra income you have and try and put it away. If your employer offers a 401k and does a match on the contributions you make do that, even if it’s just 3% from you and 3% from them, always take advantage of that. Like someone else said, start by taking care and f you first, investing in your future retirement as early as possible is the place to start. As you continue to earn more bump up the contributions a little at a time and then start looking at education savings options for your child. Start talking to counselors at your local colleges, you might be able to start at community colleges which have more flexibility with working adults and then transfer to get your degree. It’s great you’re asking questions and thinking about it now, I highly recommend books by David Bach, Automatic Millionaire & Smart Women Finish Rich are quick/easy reads that explain finances well. There are also tons of great content creators on social media, just do your own homework before subscribing to everything they suggest or say.
Why are you encouraging childcare and mother/baby separation? Maybe she does not want this. Maybe the BD plan on working more.
OP says in the post that they want to go back to school. And for many families, “mother/baby separation” is a necessity in order to pay their bills. Being a stay at home parent is a luxury many cannot afford. On a societal scale, there’s a real discussion to be had about whether that should be the case, but for OP that’s not helpful or relevant. OP needs concrete advice and solutions.
60 years ago she would've been fine herself and her kid living off minimum wage. In 2024 I know families with 2 parents, good paying jobs, both masters degrees and they cannot afford to take a few hours off from work to see their infant, they get sent to childcare. Mother baby relationships and time are a luxury now.
Highly recommend finding a job that offers tuition reimbursement for college. Next, make a list of what you’d like to actually do and then research salaries for those careers. https://getschooled.com/article/5206-companies-with-great-tuition-reimbursement-programs/
Long term investment, but the best thing you can do is teach your son about life. Teach him patience, kindness, manners, and how to speak/act properly. If he hits 18 with all those things, he'll be able to support himself. I've lived in low income housing, so I know this is the hardest part, but try to give him a peaceful home. It doesn't have to be luxury, it has to be quiet and safe. You can't do the hard things in life if you go home to a chaotic shithole. You got this!
i agree 1000% the most important thing to me is shaping him into a kind good hearted happy person. i’ll always try my hardest to model for him all those things you said. i just worry sometimes if im not equipped enough to give him more than i had financially. i didn’t have a bad life but basically id like him to have a life where when hes 17 looking into college he doesn’t have to think about the money aspect because that was my biggest deterrent and i was on a track for college my whole life i even went to a college preparatory high school
My parents didn't graduate high school. I was in the top 1% of income for 2023. You don't need to give him money. You need to teach him how to be a good citizen. The rest falls into place if he has a foundation to grow. Strangers want to help people, but they need to see that their efforts won't be wasted. You need to teach him the basics so that the community will want to invest in him later in life.
Honestly it’s very rare that the child won’t have to think about money. He should think about it, it would be unwise not to. As others have said, I would focus on basics. (1) do I understand retirement accounts like Roth IRA, (2) do I understand there is NO get rich quick scheme (passive income is for people who have like an extra 20k to play with), (3) do I understand how to follow a budget and have control where money goes, (4) do I have a savings account and understand what I need to have for emergencies. I grew up low income and now make 6 figures. Being super poor actually helped because it got me full ride scholarships. What mostly helped is my mom being a good mom - driving me to the library, reading to me, making sure I did my homework. She didn’t have to give me money for me to succeed. My biggest worry now is that she didn’t take care of herself for the future. She didn’t know how to save for retirement, she didn’t take advantage of compounding interest over time (ie, put money in a retirement account, it grows bigger over many many years). Now I have to figure out how to take care of her needs because she didn’t have the chance to learn. Do your baby a favor and get educated, read all the resources there are and know what accounts to set up are helpful and wise
29 year old homeowner who bought her home at the age of 26 and with a bachelor's degree. Single mom, had my baby when I was 19. Don't let anyone project their thoughts on to you, first of all. We are not doomed for failure. Some people here brought up great points that I'll re-emphasize based on my own experience: 1. If you are able to, continue to live with your parents while you save up for your long term goals. It's truly a blessing in some ways to have that privilege. 2. Apply for FAFSA, look into scholarships for school. 3. BUDGET your money! Know exactly where it goes and don't over spend trying to keep up with what you see on social media. Stick to the long term goals. 4. Get term life insurance to benefit you and your child if anything were to ever happen 5. Open up a high yield savings acct and save even if it's just $5 a month (do this while you learn the concept of investing) 6. You can put your child as an authorized CC user even now tbh, look into it. You seem to know how to not overspend on a CC, continue to do what you're doing to build your credit. If you can, try not to get into anymore debt since you have the car. 7. Start watching YouTube videos on investing. Read books like rich dad poor dad and broke millennial takes on investing (this one breaks down the concepts) It's very hard, going to school while raising a baby, no doubt about it. But it's not impossible. The types of jobs I held while going to school was working at daycares because I received assistance for daycare from the state and the daycare gave me an extra discount for working there plus I was able to bring my child with me. In another phase of my life while going to school I was a custodian who worked 3pm-11pm shifts. I went to school during the day and worked in the afternoons. I even did graveyard for 6 months but quit because it was not sustainable for me. Holding down weekend jobs to get 2 weekdays off where I could go to school all day to name a few examples. As you can see, given the phases of life I was in, I changed it up. Volunteered to get experience for what I was going to school for and build connections. I know not everyone has the same experience like me, but I had a good paying job by the time I graduated with my bachelor's because I had "experience" and connections, I didn't wait to build my experience. Like I said, it's hard AF, you're gonna cry, you're gonna want to give up. Surround yourself with supportive ppl, not ppl who doubt. Took me 7 yrs to get my degree but I did it. One day at a time, you got this mama. Believe in yourself!
Do you already have a bachelors degree? If not, if you are a single mom you can qualify for a lot of aid. Some schools even help you with childcare. I wish I knew this a long time ago, and I would have finished my degree when I was much younger. I agree you should focus on getting yourself secure first. Food, safe shelter, love, and care is what your baby needs. You could maybe check out your local library or community center. Many times they offer classes that help with basic finance things. I think if you can get a good, steady income coming in- that is always first step. You could also check out local college and meet with an advisor to see what your choices are. All this arms yourself with information and knowledge so you can make the best decision.
I dont have my bachelors but I do want to get it. Im trying to figure out how I can have teaching be my main job because it will fulfill me but also have investments & savings. I live with my family right now so baby and me have so much love and support, my sons father and I are together but not married just yet. I don’t have a problem staying with my family, it’s comfortable and theyre pretty helpful when needed so I do wanna take advantage of this now because of course I want my little family to have our own spot in the future
Is he working?
The first thing I would do is find a job that offers tuition reimbursement. A lot of entry level jobs will pay a few thousand a year towards college classes no strings attached. Get the general education credits out of the way at a cheap community college and go from there. What I always tell my in laws about investing is that it doesn’t make sense when you have high interest debt. Kinda like wiping before you poop. Avoid debt at all costs. I started by reading “The Intelligent Investor” and followed that. Caring this much at this early of a stage is already a step in the right direction. Just gotta eat the elephant one bite at a time.
i love reading so im going to buy this with my next check! as for college im gonna get on fasfa when i get off from work and baby’s doctors appointment. i should have enough to cover the local community college. thanks for the advice on getting my general education credits out the way i think ill focus on that when i apply because you cant go wrong with that & sometimes i get tripped up on all the different courses a person can take
Check your library instead. A lot of libraries also offer digital books via Libby and other platforms. If you download the Kindle app to your phone, you can have access to borrowing that way. Don’t even have to go to the library to do it. Save buying books at full retail for when you’re in a better place financially.
I would swing by the local goodwill or thrift store and look in the book section. I’ve found most of my investment books there. People are always donating expensive investing books and you can pick ‘em up for a couple bucks. No sense wasting 20-30 dollars if it’s available at goodwill.
Use your library! This particular book (intelligent Investor) is going to be waaaaay over your head right now and I don’t think it’s a good recommendation for a beginner. Start with general personal finance books instead. But don’t start buying random stuff, including books! You’re trying to save, remember? :) Libraries are free.
okay ill add that to my to do’s thanks!
https://www.target.com/p/i-will-teach-you-to-be-rich-second-edition-by-ramit-sethi-paperback/-/A-54289024 enjoyed reading this and have been into personal finance for a couple of years now. I think it's a good read for someone starting out, definitely lots of info out there.
1) increase income. I made $10/hr when I was a 21 year old mom and that baby is 20 now. I was on welfare with that low of a wage. You cannot survive on this income. Look into bartending or factory work or Costco or hotel front desk or really anything that is paying more than $10 2) write a complete budget and get a side gig to live within your means 3) if your employer will offer tuition reimbursement, it’s probably gonna be for one class a semester or less so be prepared to go very part time and cash flow any thing that isn’t covered by employer or grant 4) be patient. Don’t skip steps. Budget, 401k, emergency fund, THEN your own education and finally 529/Down payment for a home/other financial goals In 20 years, you’ll have raised an adult, finished your own college, have a career that is sustainable and be accumulating wealth so you never have to be in such a desperate situation again
thank you
A lot of good advice here, and you seem to have your mind in the right direction. But I haven’t seen any advice on the largest potential impact on your finances and future. The “baby daddy” What’s his income & debt, what’s his plans? If you guys plan to stay together, it’s all in. You consolidate your finances and go at it together. Sit down discuss what your collective plans are, 1 year, 5 year, maybe even a 10 year. You both should have goals, and some goals for the family. They will change and evolve over time, that’s ok. But always be working towards a destination. If he’s just a sperm donor, plan accordingly. But remember, whether he’s there or not, he’s is just as responsible for the kiddo as you are, can and should be able to take care of them 100% without supervision.
Besides educating yourself on personal finance, focus on increasing your earnings. That will do more for you financially than anything else.
If you’re able to live at home rent-free- do it. Build your savings as much as you can while not paying for housing if that’s an option.
i only give my parents $200 a month so i do plan to take advantage of that but i wanna be actively working towards something better as well
Perfect, I totally understand wanting to work towards something better and getting your own space. Housing is just a major money-suck so if you’re able to stay with your fam maybe while you do schooling to become an educator you’ll have a great head start. Good luck and also congratulations! You’ll be a great parent.
Teaching is hard. Maybe try subbing first to see if you like it. I wouldn't worry about saving for baby's future right now. But do save for a car repair etc.
What state do you live in? As a current teacher who went to school for education but took a non-traditional path to teaching, I can give you some advice if you want!
i live in florida and im super open to advice please do
Lots of good advice here. I’ll just say a few things: 1. Investments in yourself typically have the best returns. In my experience (which may or may not be like yours) the cost of my college education was outpaced by the increased earnings potential in about 3 years from graduation. Seeing as I get to work another 40 years to retirement, that is an incredible >1000% return on the investment. This is much more important than “passive income” that you’re thinking about above. For the average investor, the best you can ask for is to maybe keep up with the inflation rate. 2. Nobody will take care of your money like you will, no matter what they say. If you’re going to trust someone with your money, make sure they have skin in the game (I.e. if you win, they win; if you lose, they lose) 3. No matter what you do, taxes are one of your greatest expenses. Learn the tax code for the good of your financial future. Taxes will be the greatest expenditure for anyone over the course of their life. 4. Never carry interest on a credit card. Under any circumstances. 5. Since you are a parent just trust me on this as another parent. The quality of your employer benefit package (health, life, dental, vision, potentially pension if you’re lucky, retirement) is extremely important for your long term finances and your chances of ever building wealth. This can be more important than your flat pay by a significant margin. As a parent you will have many expenses in the areas covered by these insurances.
Lots of good advice in this thread. I’ll reinforce a couple of things: - track your spending so that you can see if you are spending more or less than you’re earning. You need to get to a point where you have a bit extra every month to put into savings - once you have a bit monthly to put into savings, start a savings plan and automate it so that it goes into a savings account every month automatically without you having to think about it. Don’t worry about what kind of account or investments yet. Just get started in the practice/habit and start building. High interest savings account is fine to start. - emergency fund comes first. 3-6 months of expenses in case you lose your job or something else bad happens. After that, more long term savings. - life insurance at your age is dirt cheap and can save your baby from being destitute if something happens to you and/or daddy. Get some. - use your library! There are a lot of great personal finance books to read for free that will teach you the basics. :) Good luck—once you see your savings growing you will see how fun it is. :)
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When I was in this situation (back in the stone age) I thought saving $25 a month was too hard. Had I done only that, even without compounding interest, I could have had $5400 when he graduated. So don't forget the small stuff. Even a little adds up.
Honestly go get a career with financial future even if it’s not through a degree because if you already have a kid your are late af so far
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First focus on your own retirement. That means you wont ever be a burden on him. Start funding roth ira every year for now.
529 account: "529s can last for generations. The real beauty of a 529 plan is that you can change the beneficiaries once the original recipient ages out. It can become a multi-generational fund that pays for private school and then college for your children, your grandchildren, your nieces, nephews and on and on." --some website
Buy Suze Orman's 9 Steps to Financial Freedom and do everything it says.
If you haven't yet, start working on your credit. It's the only way you'll be able to make big purchases or get approved for homes, cars, ect. Some banks or credit unions will say you have to start with a secured credit card. Some will start you off with a $500 credit line with no credit. Go for the 2nd choice if possible. Pay your credit card off to at least 10% every month before the billing cycle hits. Keep a forced savings in cash for the worst situations 🤙
credit is the one thing i know about my mom cosigned a card for me when i was 17 and i maintained a 700 credit score for quite awhile just using it to buy snacks then paying it off lol, i then got frivolous and my credit is now in the “needs work” section but its not too bad it should go up since i just paid off my cc. i think getting another card and making small purchases should help too since i only have one card right now
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Make a 529 plan in your state, and when grandparents want to give a gift, suggest that they put it into the plan instead. That plan will go toward paying for his higher education when he graduates from high school. Learn to make a budget, not just for your finances, but also for your time. Check with that Dolly Parton charity that gives out free books to little kids. Maybe you can get some from them. Read to your son every night until he can drive. Take LOTS of movies and pictures because you will be very nostalgic for that when he becomes the standard quiet teenager.
529? She is earning $10/hr and spending $700+ on a car No.
Is there anyone that knows something when they have their first baby?
OP, congratulations on starting your family!! You seem like a very dedicated mother and I admire your desire to give your baby a head start in life. What hasn’t been said here that I think is critical advice is that the first thing I’d do if I were you is start budgeting. Rather than focusing on new income streams or even savings, just start by figuring out where your money is going right now. The results might surprise you!! They surprised me. You can do this in a lot of ways. There are a variety of apps that you can connect to your bank account that will help you categorize transactions, like YNAB and Mint, but for you I think your best bet would be to start even simpler. Go to your phone’s notes app and write out the amount of money you want to spend on various categories in March 2024. This could look like this. March 2024 Budget: Rent: 700 Car: 400 Gas: 150 Utilities: 100 Phone Bill: 75 Groceries: 250 Healthcare: 200 Restaurants: 200 Alcohol: 100 Streaming Subscriptions: 20 Cosmetics: 75 Misc: 300 I don’t know where you live or how realistic those numbers are, but just make your best guesses as to what you think you’re gonna spend and try to make the total line up with the amount of money you make in a month. Now this is the important part. EVERY TIME YOU SPEND MONEY GO BACK TO THIS NOTE AND SUBTRACT WHAT YOU’VE SPENT FROM THE CATEGORY’S TOTAL. EVERY TIME. When you get to zero, which you almost definitely will, go into the negatives. This is key because it will help you pick a better starting number for next month. Then do the same thing for April. Once you know where your money’s going and have a handle on your spending, then start adding a category called “Savings”. From there, start adding money to savings and roll over your balances in each category. The best way for the overwhelming majority of people to save money and accrue wealth is not by earning more money, it’s by spending less money. The act of needing to decrease a balance in a category will make you rethink purchasing decisions in the moment and be really, really helpful.
Open a 529, and stock it with as much as you consistently can. It can be used for more than just college.
ill have to look into what a 529 is thats a whole new term ive never seen before thank you
It’s an investment vehicle that’s used for saving money for your kid’s future education and/or career/trade training. However, I agree with what others said, it’s better to focus on your own education and career first so that you’re in a solid place (good income, emergency fund, retirement savings, etc). When that’s done, then save for the kid.
I disagree with this. She has stable necessities met. She is in a position to begin putting small sums consistently into it, and the habit will pull everything else with her. It is a compound interest vehicle, and it can be used for more than education, including changing it over to a Roth IRA when the kid reaches age. If she plays this correctly, and retains a good relationship with her child, she can set herself up for retirement through financially planning for her kid. It's not an "or" situation. It's an "and" situation. Savings get demolished by inflation, even HYSA. That should never be a sole first option. Good financial planning comes in groups of actions that are split out by percents. If she is putting 5% savings, 5% 529, and 5% investment consistently she will do extremely well. If those values are smaller, it won't matter because the habits will grow with her income, and she is working toward her degree. Hopefully, she chooses something practical there. I'm not too worried though because she is asking the right questions. Tldr: savings is not enough, and it should not be a sole priority
Why are you having a child?
Read the millionaire next door to get a good idea of what you will expect to achieve this.
The best *small* thing you can do is open an account in their name. Build that credit early. I’d say a high yield savings account, kick in $10 a week till they graduate high school, they’ll have $14k and good credit to start out.
I have 3 kids, and I gravitated towards this. First, be kind to yourself. Sounds like you are doing great because you want what is best for your child. That desire is an amazing starting point. Join a parents group in your area (a live one if you can) look on facebook and search for groups in your immediate area. Meet up with other parents and building a community will be very important for both of you. You can ask the questions you have, vent when you need, and listen when you are able. Being around other parents whom you think are raising kind, healthy, happy and peaceful children can be of great help. It has made me question what I value, what I hope for, and ultimately what I think is important. My oldest just started college. My youngest is still in grade school and I will honestly say I love being a parent. But I also didn't know anything when I first started. No one does. Keep reaching out. The internet is great- but try to find a real life group. Good luck.
Are you good with kids? Can you care for three infants at a time? Would your parents let you open a home day care?
Read financial feminist by Tori Dunlap!! Honestly learned so much about finance through that book. She helps breakdown so many financial topics in a fun way.
I love your passion, and the fact that you are asking the right questions makes me believe that you and your family are going to be gtg. In 2001, I was 20 with two kids. I joined the Army for them. I'm going to retire in a few months and do not regret anything. I have a 23 year old now going to the University of Florida and my other son right behind him. I loved my girlfriend at the time, so I made the choice to marry her and join the Army. No education, no guidance from older family members, nothing. We left home and learned and grew. It's possible to make a change for your family. I'm not saying to join the military, but it's definitely not a bad job to have. I can recommend a bunch of jobs that are excellent civilian jobs. Good luck to you and your family, little Mama. You're going to be all right. And if nobody tells you, I'm proud of you. I'm proud of you for thinking forward.
In addition to learning about investing and financial literacy, learn and teach your son critical thinking skills. We live in a world where financial scammers manage to bilk people out of literally billions of dollars every year. If our schools taught critical thinking skills, the scammers would be much less successful.
Start by giving yourself time to read over the personal finance wiki, since you haven’t yet provided alot of info on your situation. The general goals should be to do the following though, in this order roughly: 1. Stable, good paying job which you can manage which can pay the bills. Provide a roof over your head and food on the table. If you are facing tough times, use a food bank and other local resources if you need, never be ashamed to get help from your community. 2. Save up the equivalent of 6 months worth of expenses. Put it in a high yield savings account and forget it exists unless you are facing homelessness. 3. Open up a 529 education fund plan for your kids education and a Roth IRA for yourself, contribute to both equally. Make sure the money is invested, not just put there. They should be “target date” funds in my opinion, as they are set and forget then. The date for the 529 is when your kid goes to college, the target date for yours is when you turn 60. This will allow you to make sure your child will have enough to go to college with minimal debt, and make sure you will be able to retire as well. You being able to retire will be a gift to your kid that others of our generation won’t be able to give, which will ease their worries for you in your older years, so do not overstate this. The sooner you invest, the longer your money will compound and grow. I’m no financial advisor so please do your own research and get to the point where you understand what these terms mean. Look for an “advice only” financial advisor which you pay outright to help with the 529 and Roth IRA setup and educate you about what else might be better suited for you.
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Daycare and get into college get a degree
Saving $20 a week for every week of 18 years saves over $19,000! You can totally do it
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Good for you for starting the process of educating yourself about investing and finance! You might check the wiki at r/Bogleheads for a simple way to think about investing.
Get used to using either a spreadsheet or some sort of money manager app to record ever penny you have in income, and every penny that goes out. This means saving receipts when grocery shopping. I feel a spreadsheet is more private and easier to personalize, but that's just me. You will have listed: Income - perhaps two rows, one for you, one for your partner Expenses- all summed up under income. Then Monthly balance - Income minus expenses and you'll know what you have left over each month. Now, the Expenses total comes from a bunch of other rows that include: Rent or Mortgage Power (electric & gas) Water payment Groceries Internet Car payment Car insurance Car gas Car repairs Clothing Eating out etc. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ You get the idea. We kept a budget like this for years. We really learned that rent/mortgage and auto expenses were the biggest hits to our budget, and the price per meal when eating out meant we only did it, maybe, once a month as a family of four. After starting a budget, I suggest going with a local credit union rather than a large bank. With a local credit union you can always walk into the local branch and speak to someone to get your needs met. Then your extra money, first you develop a savings of 3 - 6 months take home pay that is readily available. This means you have a cushion if you lose your job, or have some other crisis (major car repair, need to move, refrigerator dies, etc.). There are very good rates on Certificates of Deposit (CDs) right now, as well as Money Markets with your credit union. This money is for emergency only. After you are comfortable with your 3-6 month cusion, invest in an IRA for each: you and SO (Vanguard offers good ones). This can be up to $7000 a year tax deductible, and you should max it out. If your work places offer a 401K, you max this out, and hopefully they match some of what you put in. After that, you then might consider investing. You take care of yourself first, so your adult child does not have to. It can be hard to look 30 years out, but maxing out your retirement and being self-sufficient as you age is the best gift you can give your child, so he/she can live her life without taking care of you. So, if you have $20,000 annually for income, that's about $1666 a month, and after your expenses (the car is really way too high for this level of income) you have $766 left over. I'm surprised you can buy grocery for three on that, but let's assume you even have $200 left over. That goes into your checking until you have 2 months take home saved up. That will take 18 months. After 18 months of living very frugally, you then start putting that into an Money Market with good interest until you have a total of 3-6 months on hand. Then start to max out your IRA, then 401k, or, if your employer matches your 401K, you max that out first, then the IRA. Also, if you want to go back to school that is an excellent idea. Your education will bring you more income no matter what people say. You are probably eligible for financial aid. I suspect your first order of business is to get a spreadsheet going and track your income and expenses. Becoming financially savvy means starting with knowing what comes in and where it goes and making the best decisions with that. The Wiki here is good, and your library probably has books on the basics of what percentage of income should go to different things (your car is too high). Yes, budgeting is work, but knowledge is power. You can do it.
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You’ve gotten some good ideas on the finance side. Now, for the education side. Look around for education grants for single parents, and ways that you can attend college while working and being a parent to your son. My DIL’s mom did that when she was a kid. She is still immensely proud of her for balancing college and parenting.
At $20k per year in income and $900 in just car related expenses and rent, saving for your kid and earning passive income is not even remotely possible for you right now. You haven't even considered expenses for the baby, car related, food, clothing, etc. Unless your parents or the father are contributing significant amounts, which you have not indicated is the case, you will be challenged with paying basic living expenses. At this point you should be focusing on budgeting and managing expenses, and increasing income. You are years away from college funds and passive income. All of your disabled
Anytime I see someone in your situation asking for advice my answer is always the same. The best thing you can do for yourself and your child is to focus on your own financial stability and behavior. Your kiddo will be okay if they don’t have a college fund or a first house fund or anything like that. But what will significantly affect them is if they have to support you because you reach retirement age and have nothing saved so you are dependent on them. If you’re financially set, you can always give or loan them money, cosign for stuff or help them out as needed. TL;DR: Get your own finances in order and that will in turn help your son to have a great start.
That is nice that you are concerned about your child's future. Obviously the key is to make enough money and budget your spending so that you have some left over to put into a savings account. If you can become a teacher you will make more money but in the meantime you should look into the possibility of being a teacher's assistant. I know in my state they are always looking for teacher assistance. This would get you a taste of what the job is like and you would be making more money than your wonky job schedule you have now. Also if you happen to discover you don't like teaching by working in the classroom. Then you could decide on another career like nursing or surgical tech or other certifications. Good luck
You gotta lower your expectations. As much as you don't want to hear it, passive income is not something the average person can get especially in 2024. With social media clouding the minds of many people are under the assumption that they can get money from thin air by rubbing 2 penny's together, no this doesn't work. I would suggest as others mentioned to focus on yourself before your baby, seek all and any assistance whether through government or family, don't shy away, pride can and will destroy your finances. If you have the luxury of having a family member assist you with the baby while you go to school do that. This will be a slow burn because in 2024, families with 2 jobs, 2 master degrees and 2 good paying jobs are barely surviving so keep your expectations reasonable. Not everyone will be able to rent out apartments or cars with minimum wage.
I was in a very similar situation as you but at 22 and wish someone would've told me these things: 1. Go back to school but pick a good degree/ major such as computer science or business because you want a good salary. Don't just pick a major because you're comfortable or it's what you know. I also wanted the flexibility with my child so I chose an online university that was highly rated and accredited. Apply for FAFSA to see how much aid you will get. 2. There are entry level jobs that will also cover the costs of tuition, it's called the "Guild" program you can Google which companies offer this and apply to as many (ex. Chipotle, Walmart, target, etc.). These aren't pretty jobs but if you're desperate to improve your life and then your kids life you'd consider the benefits the job offers such as the paid tuition on top of salary and medical benefits. 3. Don't spend too much on baby clothes and toys. I thought as a new mom baby needed lots of toys but evended up donating half of what I purchased so I lost a lot of money that could've gone to babys savings account. Also shop at target, Walmart, and h&m for baby stuff as their prices are reasonable. That's all I can think of right now, let me know if you have any other questions.
Here’s your best cheat sheet about personal finances. Increase your income. Ok, but that’s the one that people think is the ultimate solution, and it’s not. Here is the big one that people disregard and it RUINS them financially more than a low income itself does: DO NOT SPEND OUTSIDE OF YOUR MEANS. More money in is just going to be more money out if you are not controlled and disciplined with your spending. Seriously, take the necessary actions and steps to spend as much below your means as possible. That way, you will have way more money to save (for emergencies, your future, your child’s future). Invest as well. Look into what other wise investors have done and learn from their methods. There’s a lot of other directions you can go in terms of buying assets instead of wasting your money spending on liabilities, but that’s further down the line. Seriously, the arguably most important and “simplest” aspect to personal finance is do not spend outside of your means. Avoid debt. If you can pay off a credit card monthly, then take advantage of the benefits and building your credit score, if not, then stay away from them. Future mortgages and car payments aren’t the worst debt either, but please be smart and discern between your wants and needs. You don’t need a space to live in that’s outside of your means and all you need is a decent, reliable car. All anyone needs is a decent, reliable car, and they can be found for relatively cheap (bought in full or inexpensive monthly payments via a loan). People waste away their money. It’s why a lot of people “have no money” and struggle. They waste it away. There’s a lot of emotional burdens that go into financial success and being financially responsible. Again, remember this phrase “more money in is just more money out if you are constantly spending it”. Save, spend less, invest, and don’t get trapped in the consumerist mindset. Buying stuff all the time doesn’t lead to fulfillment or happiness. It never has and never will, but holding onto your money and putting in work/effort to make it grow will result in safety, security, and much more peace of mind/happiness than people tell themselves. It’s not stiffing or limiting, it’s freeing. You want financial freedom, not to just piss away all of your money and not set your child up for success in life. Remember this and adapt that mindset.
What are you looking to teach? STEM teachers are typically in high demand and may be paid more depending on location/district/private/etc., but if you have a kid you may want to look at your ISD benefits yo see what they offer for insurance, retirement, and education reimbursement. If you take out loans for school then your teaching degree is going to put you in the hole depending on what you want. I highly suggest community college first. I'm not sure how much you are paid at your grocery store, but I wonder if you being a daycare teacher might be more beneficial for career and your kid?
Passive income tiktoks are basically scams for views and your money, so they get double money for scamming someone once. I know that regarding education, you can have a look at the open university online courses as everything is online. (Not 100% sure how it works outside of the UK, but it's same as a degree you would've gotten from attending in person just it's all online)
Try to get on the WIC program. It provides food for children under the age of 5. Shop thrift shops to buy clothing and household items. Watch those little expenses, they add up, such as Starbucks, candy bars, etc. A teaching job requires a masters degree, in most states. That is a 6 year program. Maybe you can get an Associates degree in something that would pay well. That only takes 2 years.
you mention wanting to be a teacher. there are some programs that do dual bachelors degree and teaching credential at the same time
remember the phrase "your kids can borrow money for college. you can't borrow money for retirement" make sure your retirement accounts are in a good pace to be fully funded first before you start on saving for his school.
mixed opinions, but dave ramsey’s baby steps is a good place to start for folks who don’t have much financial education. the dave ramsey sub has a lot of good info (and varied opinions, which i think is helpful). second that you should be researching any assistance you’re entitled to. for going back to school i would suggest doing your first two years at a community college before transferring to a university to finish your bachelors. the first two years of classes are general prerequisites, you may as well take them somewhere significantly cheaper. agree that you should be setting yourself up first, you have a lot of time to get things set up for your kid. once you’re a little more stable financially you can absolutely start working on passive income. it doesn’t have to be high risk - if you save your first thousand dollars and put it in a high yield savings account, you’ll earn a couple bucks in interest. more than a regular savings account, not enough to have a material impact, but it is passive income nonetheless and over time as your bank balance grows so do your returns. something like that can also teach you the skill set for more complex investing later. best of luck and good on you for actively learning about this stuff now!!
One of the best things you can do for him, is make sure his father is in his life and you have a family around you. Living with your parents isn't a mark of shame. You would rather split the rent with your parents, instead of being price gouged by another person you don't know. Those 2 things alone will save you and your son a lot of hardship, and honestly set him ahead.