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Our $1,200 tax "rebate" going to...

February 8th, 2008 at 04:22 pm

Well, looks like the stimulus plan is going to make it through. I'm really not a fan of the idea, but I guess it's time to at least entertain the idea of what to do with the money.

Bush won't be happy. It won't stimulate the economy.

Looks like we're in line for $1,200 as a couple.

With a new baby due April 4, we've decided to put all of it into junior's 529 college savings fund. We'd planned to contribute $2,000 this year (that's the max for the state income tax deduction). So we'll only need to put in $800 after that to reach our goal.

Hey, I don't know how expensive having a baby is going to be, so it does feel good to not have to think so much about scraping together the money for that future college education!

9 Responses to “Our $1,200 tax "rebate" going to...”

  1. DeniseNTexas Says:

    That's a good thing to do with the money, I think! As for how expensive a baby is, well I'm one who believes they can be as expensive or as 'cheap' as you like. I've had four and not one of them cost me the arm & leg I was told they would. But then I breastfed, used cloth diapers, bought most of their clothes at thrifts and such and was just generally pretty frugal. Anyway, your plan for your 'rebate' sounds like a good one to me. Smile

  2. thriftorama Says:

    That makes me feel better. I'm planing to breastfeed, have a drawer full of cloth diapers and bought almost everything for the nursery used. I don't know how, but we've managd to buy most of the baby gear and we've only spent $300! Maybe folks just don't know about all those good baby second-hand shops out there. Who can argue with $1 onesies and $12 strollers? Certainly beats new.

    I think our big concern cost-wise are things like college. With a 529, we're looking at about $200 a month in contributions for the next 18 years. And, likely, sports. But, if I keep him out of equipment sensitive sports, maybe he'll be cheap. Looks like hockey is out!

  3. DeniseNTexas Says:

    Yep, college is the big expense, I'm sure. Unfortunately, I didn't save for college for my sons so they're dealing with it themselves. Bless their hearts! I hate to see the debt the oldest will have when he graduates! I hope to be able to help him pay some of that debt. And yep, watch the sports! My sons played football and wrestled and the oldest got a back injury his junior year of high school that *still* gives him trouble. Frown Keep the medical bills in mind, too!

  4. JanH Says:

    If I haven't told you before...congrats on the baby! I agree with Denise...babies don't have to be really expensive. Our biggest expenses were medical (lots of ear infections--a different pediatrician helped us finally solve that) and especially college educations. Sounds like you are on the right track!

  5. JanH Says:

    LOL. Our son is a musician and his musical stuff cost a whole bunch of cash! It's not only the sports that will get ya. But it's all worth it!

  6. thriftorama Says:

    I'm paying off $40,000 in student loans right now, that's why it's very important to me to pay for some or all of my own child's college. I worked 50 hours a week as a bartender on Bourbon St. to make my tuition and I missed out on a lot of opportunities because of it. And, still managed to get into debt.

    Medical stuff scares me too. I don't know how much more we'll have to pay for insurance once the little one is added to the policy. Plus Dr. visits, co-pays, etc. Ugh. So much to think about.

    I'm guessing it will be sports because both I and dad are sporty. And I can't really say no, considering I have a $400 pair of roller skates! (for speed skating and roller derby). Don't want to be a hypocrite.

    Then there is babysitting and childcare. Luckily, we won't need much in that arena right away, but if I ever want to go back to my full-time gig, it will be a problem...

  7. Broken Arrow Says:

    Heh. Seeing as how my financial plans consists of largely saving and investing, I guess Bush won't be happy with me either.

  8. koppur Says:

    I have over $100,000 in student loans, but it was worth it. I does however, make me aware that when I have kids, I want to star a college fund for them. I think it is a fab way to spend the "rebate".

    And congrats on the baby!!!!

  9. monkeymama Says:

    Um, I understand what Denise and Jan are saying (we did all the same - breastfeeding, clothe bought second hand) but it is the $750/month health insurance (up from $200 when my 4-year-old was first born) and the lost wages (lost $40k/year) that make kids so expensive. College certainly doesn't help. Those are all some pretty HUGE expenses. But I have to say, kids are so WORTH it. Big Grin So I can't complain much.

    But I think that is a great way to spend your $1200. It's important to you and helps defray the costs a little. Yay!

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