New parents need to plan for the future of their baby.
You are expecting a baby.
It is your first.
You are new parents.
You are nervous and excited.
You want to set your baby up for success.
According to a recent U.S. News & World Report article titled “Financial Steps to Take When You’re Pregnant,” you need to plan further than the paint colors to accomplish this.
So, how do you prepare for the future of your child?
Start with the birth of your baby.
Check with your employer and its parental leave policy.
Is it paid or unpaid leave?
Finances are tighter with a baby and you will want all the financial help you can.
You will also be tired, so any support for you and your spouse will help as you care for your little one.
Review your health insurance.
Check what is covered for prenatal visits and pediatric care.
Once your baby is born, you have 30 days to add him or her to your insurance.
Do not forget.
Look over your budget.
If you do not have one, create one.
You will need to include expenses for the baby like childcare and diapers.
With a child, you have another person depending on you.
If you do not have life insurance, get some.
If you do, make sure it would be sufficient to provide for your family and minor child.
Create or update your estate plan.
You also need to select a guardian to rear your baby to adulthood in case your child is orphaned.
Depending on your situation, your estate planning attorney may recommend a trust.
If you have retirement accounts and insurance accounts, you should update the beneficiary designations accordingly.
Although you want to prepare for the unpleasant and unexpected, you also want to be ready for good things in the life of your child.
A first automobile, college, and a wedding can be expensive.
Trust me, I know this first-hand.
I am the father of three daughters.
Utilize a 529 College Saving Account.
This can be a tax efficient way to help your child pay for college.
It is never to early to set your baby up for success.
And being diligent with your time and resources now is the best way to start.
Work with an experienced estate planning attorney who can help recommend other professional resources from his or her referral network.
Reference: U.S. News & World Report (August 29, 2019) “Financial Steps to Take When You’re Pregnant”