Married couple, one college educated, one not. “Good jobs.” Take home pay is $5,500 per month after taxes, family health care plan, and HSA contributions. There is nothing extra for retirement savings.
$1,900 Mortgage, property taxes, utilities on a 200k home (decent home but not great)
$900 Daycare for ONE child
$225 Student loan payment for the formally educated spouse
$200 Credit card debt
$80 Monthly payment on new furnace – luckily interest free
$500 Car payment, gas, and a repair costs for the family's SHARED car. (There is a paid off 2003 Chevy Impala sitting in the garage as back up, too. City has no public transportation.)
$800 Food (Cheap food mostly. Not steak and fruit)
$100 Home repair savings
$100 Toilet paper, soap, deodorant, etc.
$80 JUST diapers
$60 Expenses related to the cat
$100 Clothing for 3 people, including a rapidly growing baby
$60 Phone plan (Why is it so cheap? They are on their parents phone plan – most people are not so lucky to have this option!)
$20 Year round savings for child's birthday party
$40 Year round savings to give child a good Christmas
$10 Year round savings to be able to bring gifts to baby showers and whatnot (Mom and Dad do not give each other gifts for wedding anniversary, birthday, etc)
$15 Savings per month so Dad can get a haircut every 8 weeks.
$10 Amazon Prime membership – billed yearly
I understand there is money left over – but for this couple, having a second child is out of the question…along with many other things!