Do you remember the first big item you saved for? For most people it’s a vehicle. I’ve heard of parents who have matched the amount their kids saved for their first vehicle. So if their kid saved $5000, they would add $5000 to their savings and purchase a car for $10,000. I think this is such a great idea. I’ll most likely do this when I have kids.
Check out this interesting chart below. I don’t know how many people spend $33,000 on a new car for their first vehicle. That seems like a lot! I would never recommend someone who is buying their first car to go into debt, especially since it depreciates in value. A cheap car that will get you from A to B and is paid for in cash is a much smarter route to take.
What about the cost for your wedding. The average cost is $20,000. Now that I am currently planning my own wedding, I can totally understand how $20,000 can be easily spent. Especially if you do everything your family and friends suggest. We’re not spending close to $20,000, but that’s just because we rather spend our money on our life together versus one day.
Buying a new home can be so exciting. The chart is bang on with the average condo price in Toronto. A lot of first time home buyers in Toronto purchase a condo because it’s more affordable than a house. It’s also recommended that if you can put down 20% as your down payment to avoid mortgage insurance, do it. Your payments will be lower, which will increase your cash flow.
Spending $10,000 in a baby’s first year is a lot! Wow! I have so many friends that have recently had babies and they have given me a whole lot of stuff they no longer need. I don’t know if they’re trying to tell me something, but I have no problem taking the baby stuff they no longer want. I am pretty sure I have a whole nursery by now. So hopefully, I can cut that $10,000 to maybe $5,000. I’ll keep my fingers crossed.
How much did you spend on your firsts?