The average wedding costs $19,000. While you might get some nice gifts from friends and family, don’t expect to recoup the cost of your special day.
The average family spends $12,000 to $14,000 per year on their children, and newborns are even more expensive. If you don’t have some extra savings for child-related expenses, you may find your financial plan suffering in other aspects.
Depending on your plans, you may want to grow your cash savings significantly in your 30s to pay for those big expenses. Meanwhile, you should be regularly contributing to your retirement savings and investments.
By the time you’re 35, aim to have 1.25 times to two times your salary saved for retirement; and by the time you’re 40 you should have two times to 3.5 times saved.
41 through 50
You’ll enter your peak earning years in your 40s and 50s, and this is your opportunity to supercharge your savings. Most of your big expenses will be behind you, with the possible exception of paying for your children’s college education.
College tuition prices are getting more and more expensive every year. You may be able to get a state tax deduction by saving in a 529 plan. And be sure to apply for financial aid. Even if you have a big balance in your retirement accounts or a lot of home equity, the FAFSA doesn’t count those as assets, so you may still qualify for aid.
