The vibrant community and family-friendly atmosphere make the City of Roses a wonderful place to start a family. No matter where you’re planning to lay down roots, one of the biggest obstacles you may encounter is planning for the added financial responsibility of raising children.
Recent studies report that the average cost of living for a family of four in Pasadena, CA, is $92,294 per year. By planning for costs like daycare, housing, education, and living, you can lay the foundations to help your family live comfortably in Pasadena for years to come.
Cost of Living
The first cost you’ll need to consider when thinking about starting your family is the cost of living. These are the basic necessary expenses such as housing, utilities, food, transportation, and more. In Pasadena, the average cost of living is 57% higher than the national average according to the Economic Research Institute.
That means you’ll need to bring in more income to meet your family’s basic needs. In fact, the median household income for Pasadena is $85,129 per year. If you’re planning to live a more luxurious lifestyle, you may need a larger income to accommodate.
Housing Costs
Housing costs make up a significant portion of the expenses for any family. Whether you rent or own a home in Pasadena, you’ll need to account for housing costs that outperform the national average. The cost of buying a home varies depending on market conditions, and the type of home you choose to buy. For a single-family dwelling or townhome, the median home price in Pasadena is $822,100.
If apartments are a better fit for your budding family, make sure your budget can fit the $2,990 average monthly cost of a two-bedroom apartment in Pasadena. With either option, you must also plan for the cost of utilities, insurance, and other household necessities.
Daycare Expenses
During the first few years of their lives, you may need to send your children to daycare while you and your spouse are at work. The younger your child is, the more expensive their daycare bill could be.
For example, the average cost of daycare for an infant in California is $1,412 per month, according to the Economic Policy Institute. The daycare cost for a four-year-old in California decreased slightly at an average of $956 per month. These costs also depend on the type of facility and number of hours needed.
Over a full year, that adds up to $16,945 for an infant and $11,475 for a four-year-old. With daycare costing as much as college tuition in some cases, it’s smart to involve a financial advisor to help you plan and budget for these major expenses.
Private School
You want to give your children the best start possible, and for many parents, that means enrolling in private school. Although Pasadena has well-regarded public schools, private schools tend to offer specialized programs, higher quality, and smaller class sizes. However, you’ll have to budget a significant portion of your income again, similar to daycare costs.
Private school tuition can vary widely depending on which school you choose, but the average K-12 private school tuition in California is $16,072 per year. Researching different private schools may help you find the most cost-effective option, but it’s still important to involve a financial planning professional to help you plan for this expense.
Give Your Children a Head Start
When you want to grow your family in the City of Roses, you have to plan for the financial thorn that is the high cost of living. Choosing to plan ahead for these major expenses in advance allows you to invest in your children and their future. We at Favor Wealth are here to help you plan for the costs of starting your family. Start your family planning with a personalized financial plan by contacting us at 626-529-0445 or emailing Ricky directly at info@favorwealth.com.
About Ricky
Ricky Biel is founder, wealth manager and Chartered Retirement Planning Counselor℠ professional at Favor Wealth, an independent financial advisory firm serving individuals and families near Pasadena, California. Ricky Biel founded Favor Wealth with a desire to provide unbiased, client-centered, community-based financial advice. Ricky and his team of caring, smart professionals want their clients to feel like they’ve done them a favor, making it easier than ever to accomplish their financial goals by blending proven investment methodologies with creative financial technologies. He is on a mission to help his family of clients feel both a sense of relief and excitement about their future. Favor Wealth takes care of their clients’ needs first and foremost and goes the extra mile to make their clients’ finances grow. To meet and see how the Favor Wealth team may be able to help, contact them today at 626-529-0445 or email Ricky directly at info@favorwealth.com.
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