What's in Your Future?

Does going to college or a vocational school guarantee success? No…but it does increase your chances that you will earn more money and have less chances of being unemployed over the course of your lifetime.

Look at these statistics:

As you can see, those persons with less than a high school diploma fare worst, in unemployment and in earnings. If you think a high school diploma or GED isn’t important…think again, it is very important!

If you are interested in going to college, there are ways to do this, even if you come from a low income background. College tuition can be paid with methods such as: financial aid, school loans, and scholarships. If you apply for financial aid and qualify for a Pell grant, this is money given to the school from the federal government to help pay for your tuition—this is not money you will have to pay back! (The school loans however, do have to be paid back).

It’s not unusual for someone to pay for all of their college tuition with one of these methods, or even a combination of them (such as receiving a pell grant & a loan). Everyone’s situation is different, just remember that if you have a desire to go to college…..it is possible!

If you are not interested in going to college, the good news is that a clear career path and the learning that results in increased earnings, can be gained with a small investment of time (usually less than a year) and money (as little as a few hundred dollars to, in most cases, under $2,000) by pursuing a technical certificate. Short programs in everything from business and finance to health care, automotive technology, computer technology, digital media (graphics and video), cosmetology, construction trades, and many more can prepare students for entry level positions. It is also possible to get financial aid for these technical programs.

THE COST OF HAVING CHILDREN

Let’s make one thing clear: Having children is expensive!!

Things you need to buy for children include: bigger houses/apartments, diapers, formula, daycare, medical expenses, food, clothing, transportation costs (i.e., doctor appointment, soccer games, and so on!)

Teenage pregnancy is the #1 indicator of poverty. When you begin to understand the costs associated with having children, and how you would have less time to complete schooling and/or training, it is easy to see why this statistic is true. Does this mean that if you are a teenage parent you are doomed? No of course not, but it does mean that it will probably take you longer (and will require more effort) to get ahead with your schooling, and in turn, your finances.

Note: If you are not the custodial parent, you will still be responsible for the following: Child support, which is based on your gross earnings (before taxes are taken out) but taken out after your net earnings (after you pay taxes on it.) If you think this doesn’t make a big difference, you would be mistaken. In addition to child support, you are also responsible for: 50% of all daycare costs and 50% of all medical & dental bills. See how all this can quickly add up?

The table below shows the estimated annual costs of raising a child, based on a survey by the U.S. Department of Agriculture. The table shows costs based on a family with two children on a per-child basis. The data comes from the Consumer Expenditure Survey by the U.S. Department of Labor, conducted from 1990-92.The figures have been updated to 2001 dollars using the Consumer Price Index.
The USDA ends its cost survey when a child legally becomes an adult at age 18. It does not include any estimates for sending your children to college nor does it offer any cost estimates if your child remains in your home as a dependent after the age of 18.

Single-Parent Family

Before-tax income: up to $39,100

Age of Child	Housing	Food	Transportation	Clothing	Health	Child care Education	Miscellaneous	Total
0 to 2	2,240	1,010	730	330	220	530	380	5,440
3 to 5	2,550	1,060	640	350	330	720	500	6,150
6 to 8	2,710	1,340	740	410	390	650	670	6,910
9 to 11	2,600	1,550	530	420	490	310	540	6,440
12 to 14	2,600	1,550	620	710	520	400	520	6,920
15 to 17	2,760	1,690	970	830	520	300	600	7,670
Total	46,380	24,600	12,690	9,150	7,410	8,730	9,630	118,590

Before-tax income: $39,100 and up

Age of Child	Housing	Food	Transportation	Clothing	Health	Child care Education	Miscellaneous	Total
0 to 2	4,820	1,560	2,220	470	510	1,290	1,580	12,450
3 to 5	4,820	1,650	2,130	500	690	1,620	1,690	13,410
6 to 8	5,290	1,980	2,240	570	790	1,510	1,870	14,250
9 to 11	5,180	2,380	2,030	580	950	880	1,740	13,740
12 to 14	5,190	2,380	2,110	950	1,000	1,260	1,720	14,560
15 to 17	5,340	2,470	2,290	1,090	990	1,030	1,800	15,010
Total	92,850	37,110	39,060	12,480	14,790	22,770	31,200	250,260

Dual-Parent Family

Before-tax income: up to $39,100

Age of Child	Housing	Food	Transportation	Clothing	Health	Child care Education	Miscellaneous	Total
0 to 2	2,500	910	780	370	460	840	630	6490
3 to 5	2,470	1,010	750	360	440	820	680	6,630
6 to 8	2,380	1,300	880	400	510	560	680	6,710
9 to 11	2,150	1,560	950	450	560	340	720	6,730
12 to 14	2,400	1,640	1,070	750	560	240	900	7,560
15 to 17	1,940	1,780	1,440	660	600	400	660	7,480
Total	41,520	24,600	17,610	8,970	9,390	9,990	12,720	124,800

 

Before-tax income: $39,100 to $65,800

Age of Child	Housing	Food	Transportation	Clothing	Health	Child care Education	Miscellaneous	Total
0 to 2	3,380	1,090	1,160	430	610	1,380	980	9,030
3 to 5	3,350	1,260	1,130	420	580	1,530	990	9,260
6 to 8	3,260	1,600	1,260	470	660	980	1,030	9,260
9 to 11	3,030	1,890	1,330	520	720	640	1,250	9,190
12 to 14	3,280	1,900	1,450	870	720	470	1,250	9,940
15 to 17	2,820	2,110	1,840	780	770	810	1,010	10,140
Total	57,360	29,550	24,510	10,470	12,180	17,430	18,960	170,460

Before-tax income: $65,800 and up

Age of Child	Housing	Food	Transportation	Clothing	Health	Child care Education	Miscellaneous	Total
0 to 2	5,370	1,440	1,630	570	700	2,090	1,630	13,430
3 to 5	5,340	1,630	1,600	560	670	2,270	1,650	13,720
6 to 8	5,250	1,970	1,720	610	770	1,560	1,690	13,570
9 to 11	5,020	2,290	1,800	670	820	1,090	1,720	13,410
12 to 14	5,270	2,400	1,920	1,100	830	840	1,900	13,170
15 to 17	4,810	2,530	2,330	1,000	870	1,470	1,660	14,670
Total	93,180	36,780	33,000	13,530	13,980	27,960	30,750	249,180