Having a new baby is an exciting but stressful time, especially when it comes to your finances. In this Q&A session with CNNMoney’s Walter Updegrave, one mom-to-be asks how to best spend the $10,000 savings she has set aside for her new bundle of joy. Updegrave’s answer may be surprising to some: he says she should take care of her finances before spending any of that $10,000 on her baby.
The first step is to ensure she has a three- to six-month emergency fund set aside. Step number two is retirement savings — yes, new parents should save for their retirement before setting aside funds for their child’s college education.
Is Updegrave’s advice surprising to you? Would you make sure your finances are in order before setting aside funds for your child’s college expenses?