Saving For Life’s Firsts!

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?

How much to save

20 comments

  1. Michelle says:

    I bought a lot of "big" items when I was younger, but my first couple of cars weren't in my name. I bought one car brand new, and that was in my name. Definitely way too expensive. Dumb mistake for an 18 year old to take on so much debt.

  2. The first time I really saved money for anything was back in 2006. I wanted to quit my job, without finding a new one, so that I could move from Orlando, FL to Washington, D.C. The savings were to hold me over until I found a job in my new city. Fortunately, I found a job two weeks after I started my search. I didn't receive a paycheck until I'd worked an entire month, so the money definitely came in handy.

    If I ever get married, I'll probably get married at the courthouse. That should save me tens of thousands of dollars.

    For a baby, I'll find clothes, toys and other essentials from yard sales and Freecycle. I plan on breastfeeding so milk will be free. For items I'll have to buy new like a car seat, diapers, etc., I doubt I'll spend anything close to $10K in the first year.

  3. bogofdebt says:

    The first thing I ever saved up for to buy is our current $500 car. Which is still running albiet a little banged up! It was rough as we were both barely making more than minumum wage at the time.

    The wedding we are saving up for and we aren't doing a lot of the bigger fancier stuff because a) it costs a lot and b) I'm more of a lowkey person.

    For the first baby, I plan on saving up starting when we want to start trying so that it's not so expensive. I'm hoping for sales, garage sales/yard sales and hand me downs as well.

  4. I saved up for a trip to Europe — saved every babysitting dollar I had so I could go to six countries in two weeks with a group from high school.

  5. I haven't spent $33k on cars total! I've bought 4 now for a total of $5k. The first one was $2k and I saved up the entire amount myself. I've never expected any financial help from my parents because I've always known there weren't in a place to be able to offer it. Usually, they "borrow" (it's never paid back and I've never really expected it it be) money from me instead.

  6. cmwywec says:

    You purchased 4 cars for $5000. How did you do that? That would be a great blog post.

  7. The first thing I saved for was my wedding. My husband and I scraped together $7500 to pay for it. I"ve never bought my own car. I turned 16 right as my single uncle wanted to get a new car so I got his old one as a gift. I'm hoping that it would last another 5-6 years before I have to think about purchasing a new one

  8. This is a great topic, worthy of a futher look. My short answer here is that I don't think I was out of line in spending on "firsts" compared to mots people. That being said, I think most people in general (including me) don't have a big-picture view when spending on firsts.

    Spending massive amounts of money on a wedding or car simply reek of life inexperience. There are far more practical things to be spending on, and one doesn't need expensive things to be happy, with the right perspective.

    As for kids, I view them as FAR more worth the expenses than one event or a vehicle. Even then, however, I think some parents get "first child syndrome" and go crazy with spending for their child. If a 2nd one comes around, many discretionary expenses come down because the parents now realize what they truly need to buy vs what they got carried away in buying the first time.

  9. I like the chart. I watched some wedding competition show on cable with three brides who compete for who's wedding is the best. On the episode I watched the winner actually spent the least amount ($6,000). I don't think it's how much you spend, but what you make of it.

  10. cmwywec says:

    I think that show is four weddings. I've seen it a few times, but didn't see the episode where the bride only spent $6000. Did she win?

  11. […] Do You Save For? Call Me What You Want Even Cheap presents Saving For Life’s Firsts! posted at Call Me What You Want Even Cheap. “Do you remember the first big item you saved […]

  12. Parex says:

    Saving is good habit for a person. Everyone should try to save money at the time of buying any product. One should be conscious at the time of buying a vehicle by which he can save money. This saving can be used for future buying. Try to minimize expenditure and expenditure should not exceed over income.
    Audi Repair Portland

  13. Very informative read.in life savings are very important. If you save well you will plan your golden years (Retirement Life) better.

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