As a new parent, I wanted to share a list of ways that we're saving money on taxes.

@budgeters_anonymous

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Why it worked

The video provides high-value, actionable financial advice tailored to a specific demographic (new parents) and uses clear, on-screen math to demonstrate the tangible benefits of each strategy.

Summary

A creator explains six different tax strategies for new parents to save money, including tax credits, FSAs, HSAs, and 529 plans. He breaks down the potential savings for each method using on-screen text and calculations.

Structure

1Introduction to tax savings for parents
2Explaining the Child Tax Credit
3Detailing Dependent Care FSA benefits
4Discussing Child and Dependent Care Credit
5Highlighting HSA long-term growth
6Explaining child modeling income and 529 plans

On-screen text

Tax credits for parents Child tax credit $2,000 Dependent care FSA $1,582 Child and Dependent Care Credit $930 Health Savings Account (HSA) $2,712 4. After Age 65, Withdraws Are Taxed Just Like An IRA (No Penalty) Additional Retirement Savings $1.5m Paying kid for modeling $13,850 per year $3,324 529 Plan $12,000 $10,548 in taxes

Original caption

These are all the tax credits we’re using as new parents. #PersonalFinance #finance101 #finance

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Transcript

As a new parent, I wanted to share a list of ways that we're saving money on taxes. First off, we're taking advantage of the child tax credit. This is something that every parent should already be taking advantage of. It's $2,000 per year. Next is the dependent care FSA. This is an account that allows you to contribute $5,000 per year. You can use tax free towards childcare. This year we spent about $10,000 on childcare. We're going to use that $5,000 towards the childcare, which will save us about $1,582. Third one is the child and dependent care credit. This is a credit of up to $3,000 per year that again, you can use towards childcare. Because we're able to deduct this, we end up saving about $930 in taxes. Fourth one is that we're using an HSA instead of just putting money into a brokerage account. Each year a family can put in about $8,750, which is all tax free and would save you about $2,712 in taxes. We can use that money for health care expenses, but if we just wait to use that until we're in our 60s, we were to contribute $8,750 per year for the next 30 years, it would be over $1.5 million. Number five, we pay our kid for modelling in videos like this one that you're seeing right now. And by the way, there's ways to do it where you don't even need to show their faces. You can pay him $13,850 per year is completely tax free and we can even put $7,000 of that into his own Roth IRA. This saves us about $3,324 in taxes. Number six, we use a 529 plan again, instead of investing in a brokerage account for their college. Putting $150 a month into that account, by the time he's 18, he'll have around $90,000. About $51,000 of that would just be in interest, so that would save him about $12,000 if he uses that money for college. This isn't gonna be an immediate tax savings, but in the long run, it is going to save us money on taxes. Think of that one as more of a long term bonus. In total, we will have saved $10,548 in taxes by doing all these.