-
Period: to
Youth
-
Obtain my driver's license
This is a short term milestone that I already achieved. It cost a flat fee of $48 and my parents and I used a savings account to afford this. -
Period: to
Young Adult
-
College
This is an important milestone, as it is the first time I will live on my own without my parents. The average cost of college is about $33,330 per year, or $133,320 for four years. This doesn't even include the cost of applications, so a large expense like this will require years of planning because it is a long-term goal. My parents are using multiple methods to save, including a Florida Prepaid account and a separate savings account. I also plan to apply for scholarships and loans. -
Purchase my first car
Cars are extremely important for life after college, as there isn't any free bus transportation anymore. The average cost of a car purchased in the United States is $33,560. Although I don't plan to pay for the entire car at once, I still need to save money to be able to afford the payments for this medium term expense. In addition to savings accounts, I would use money market accounts, CDs, and bonds. -
Rent my first apartment
After college I will need a place to live that is relatively inexpensive, so I can build up my savings from my income. The average cost of renting an apartment is $1,200. This is a medium term goal that I will need to save for during college and a little bit after I graduate, so I can afford an apartment after college. This is the span between 18 years old and about 24 years old. I would use savings accounts as well as mutual funds and stocks. -
Period: to
Adult
-
Marriage
This is one of the most important milestones in life because it is a huge commitment that sets up the rest of your life, but it definitely isn't cheap. The average cost of a wedding in the United States is $26,645. As a result, I would need to save long in advance in order to reach this milestone. I would invest in bonds, mutual funds, and CDs in addition to an individual savings account in order to prepare for this milestone. -
Have my first child!
This is arguably the most joyous milestone a person can reach and is one I definitely plan to reach. However, children are extremely expensive, as the average cost of a child over 18 years ranges between approximately $250,000 and $300,000. This is approximately $16,000 per year. This is definitely a long-term goal and one that will take careful and strategic investments that could include savings accounts, money market accounts, CDs, bonds, stocks, mutual funds, or even real estate investments. -
Period: to
Middle Age
-
Upgrade my home
Once I'm married with kids, I will need a larger home to satisfy my family's needs. The average cost of a home in the United States today is just under $200,000. This is another long-term investment that requires careful investing and saving. I would want to lock money away for a home so it will appreciate in value more quickly. As a result, I plan to invest in 10 or 20 year CDs or other types of long-term investments when I'm 25 or 30, so that the money will have significantly grown in value. -
Vacations
Vacations are extremely important for families to get away from the stress of their lives and relax. The first vacations with your family create memories that last forever. The average cost of a vacation is $4,580 for a family of four. I plan to take multiple vacations during my middle age life, so I will need to budget my money accordingly. This is a medium term goal that I would mostly use savings accounts for. -
Retirement
This milestone is extremely important, yet difficult for many people to save for. The amount of money I saved per year would depend on my salary and return on investments. Overall, I would want to have at least $500,000 saved when I retire. This is a long term investment that I would save for from my first job in my 20s until I retired around age 65. Over about 40 years the $500,000 would come to $12,500 per year. I would invest in IRAs and 401(k) plans as wells as mutual funds and stocks. -
Period: to
Senior
-
Medical Expenses
After retirement, I will need to be able to afford all of the doctor's visits and health insurance premiums I would need to maintain my health. The average health cost for a retired couple is $245,000, or about $122,000 for just me. This is a long-term investment that I would need to budget some of my money from retirement for.
