The cost of raising a child has increased by 25% in the last 10 years. Yes, you read that right, we’re talking tens of thousands more.  “The government’s most recent annual report reveals a middle-income family with a child born in 2010 can expect to spend roughly $227,000 for food, shelter and other expenses necessary to raise that child – $287,000 when you factor in projected inflation,” stated the folks at CNBC in an article from earlier this month.

These experts exclaim, and many agree; the decision to expand your family has much to do with dollar signs. I hear my husband often telling his male friends, “If you wait until you’re ‘ready’ you’ll be waiting forever.” I think this is true, but I also feel there is some ‘getting ready’ that can take place at a minimum during pregnancy. The CNBC folks chime in, “Plan early.”  Get your finances in order, think about childcare – or consider one parent staying home, think about your car and home, and maternity and paternity benefits. And most importantly, start saving today. Beginning a SmartyPig goal for your new addition can help you cover your labor and delivery costs, a place for that bundle to sleep, and the many accessories that will accompany your new family member.

And after they arrive? Well, then it’s time for an emergency fund. While we hope you never need it, there’s a decent chance you will, for at least something small. And that goal will surely help you sleep better at night. Even if you’re new addition isn’t.

Wishing you successful saving.

Sarah Foss, SmartyPig’s Media Mad Woman
SFoss@SmartyPig.com

Today’s twenty-somethings hold an average debt of $45,000. This astounding number includes everything from cars to credit cards to student loans. On top of that debt, this demographic is facing a 12.4% unemployment rate.  Many experts say this financial misfortune is due to lack of financial literacy.

What does this mean? For those of you with children, it’s an opportunity to teach them fiscal responsibility today. For adults, it’s all the more reason to use a system like SmartyPig to help you save and spend responsibly. Eliminate the spend now, pay later mentality that a credit card offers and instead save for the items you want or need and reap the benefits of a debt free lifestyle.  We also recommend sites like Mint.com to help make your financial management easier.

It’s a learning process, one that you can start today by creating a new goal with SmartyPig. Watch it grow and reap the rewards!

Wishing you successful saving.

Sarah Foss, SmartyPig’s Media Mad Woman
SFoss@SmartyPig.com

Or, at least, I was not before.

Saving is hard. It requires will power, determination, foresight, and thought.

So, I say I’m not good at it. But I do it anyway. And that, my friends, is how I know I’m on the right path.

I can say that as the months pass, saving money gets a little easier. I’m especially proficient as saving for “extras.” As the wife of a medical school student, money is tight, and our bank account is filled with large sums of “fake” money from student loans that would make you wake up in the night screaming if they belonged to you.

However, we’re not the type to live a boring life. We love to travel. We’re obsessed with fine food (and pretty much any other tempting, shiny thing this beautiful world has to offer.)

Yet, spending loan money on these things, however grand, just feels wrong. So we use our loan money and my income to cover our living expenses and school tuition as they were intended, and I work several writing gigs on the side to save up for fun things.

The trick – and my secret weapon – is putting my extra money from these gigs in my SmartyPig account the second I get it. As a writer, I typically get paid by my employers throughout the month. Before I can even think about using it, I’ve sent it to live in the belly of my “Macbook Computer Fund” Pig, who I’ve affectionately named Peggy. It takes a few days to get deposited in Peggy, and by that point, I’ve had time to remind myself that my long term goals are more important than my short term goals.

Many financial experts might disagree with this method, urging us to pay off our student loans before traveling or buying nice things. But, I say everything in moderation. Medical school loans are so extensive, if we waited to pay them off before doing anything enjoyable, we’d be 50 years old with kids in college before even thinking about doing something nice for ourselves.

Instead, we have eliminated the debt we can at this point, paying off three credit cards in full over the last two years. Now, we’re chipping away at student loan interest all while saving for the future and getting excited about our next steps.

Saving in this way has dramatically changed the way I live. No longer do I buy something and feel that twinge of guilt about not actually having the funds on hand. Instead, I force myself to be patient, stay focused, and stay organized so that we can reach our long-term goals.

Like I said, I’m not very good at saving.

But, I’m getting better at it every day.

Catherine Alford is a writer and a blogger who writes about “spending less and living more” on her blog www.BudgetBlonde.com. Follow her on twitter @BudgetBlonde.

Congratulations to Hope Stephens! Thanks for playing!

Many financial experts think that when it comes to saving 10 is the magic number – 10 percent of your income that is. And while some Americans think that number to be a lot, it’s recently being thought to be not enough. In fact, “the average savings rate really should be 16 to 20 percent of household income… not 10 percent,” says John D. Buerger, Certified Financial Planner. “I believe true wealth is built out of cash flow management (not investment management.)” Having paid close attention to the successes and failures of various saving strategies, Buerger advises us on what works best for his clients.

It won’t surprise you that this finance guru emphasizes trimming the fat first and cutting unnecessary expenses and understanding the value of others. Buerger also highlights many expenses being a feeling of necessity when in actuality a mind shift of what’s a “need” and a “want” would significantly enhance your monthly savings. You’ll be spending less money on things that don’t matter anyway and watching your savings percentage grow by leaps and bounds at the same time. In the end, Buerger notes how much happier his clients are with this significant increase. It’s not just cutting back on cable or a dinner out, it’s a feeling of security, striving for a goal and a huge sense of accomplishment. And it’s what we at SmartyPig encourage each and every day.

We challenge you to cut a few extra expenses this week and donate to a new goal. Will you feel happier, more secure, accomplished? We bet you will!

Wishing you successful saving.

Sarah Foss, SmartyPig’s Media Mad Woman
SFoss@SmartyPig.com