Preparing ahead can save your budget! In this episode of The Motherhood and Money show, we talk about sinking funds and how they can help you not tank your budget. In this episode we cover:
What is a sinking fund & how it works
The 2 ways you can save in a sinking fund
Why you should use sinking funds
Sinking funds to use in your budget:
Logistics: how to set up and use sinking funds
To find out more about setting up a sinking fund as you start saving for a baby, listen to Episode 4: Preparing Your Finances for Having a Baby
To find out more about setting up a sinking fund for monthly baby expenses, listen to Episode 6: Saving on Monthly Baby Expenses
We also read a letter from one of our listeners asking the difference between a 529 Plan and a UTMA account. Here are the articles we referenced:
Difference Between UTMA and 529
Ask Merrill
