Step Three: Examine Your Will
Have you been putting off writing your will? Now is the time to write one or update an existing one. Make sure you’ve designated the individual that you and your spouse would like to raise your child or children in case something happens to you as well as how your assets should be handled. Do you want to create a trust for your children to access when they’re older? Do you prefer to hand over control of your assets to your child’s guardian? Make sure that your estate planning documents leaves your family with everything they will need.
Step Four: Update Your Insurance
Aside from adding your child to your health insurance plan, this will also be a good time to review your life and disability policies. As your family grows, it is more important than ever to make sure that your insurance plans are adequate to provide for the needs of your family in case of death or a disability.
Step Five: Revise Your Budget
Your budget is going to change significantly with the arrival of your child and some of your discretionary income may decrease. Make sure that you’re prepared for the changes to your budget, including:
- The cost of items the baby will need (clothing, crib, diapers, etc.)
- The cost of formula or baby food
- Child care expenses
- Medical expenses
Step Six: Start a College Fund
Many parents want to give their children the best possible start in life and that includes helping them pay for college. By opening a 529 or other college fund for your child, you can help make it possible without having to worry as much about budget constraints or taking out loans.
Getting your finances in line is an important part of preparing for a new addition to your family. By following these important steps, you’ll put yourself in a better place to deal with the new financial challenges that might be coming your way and set yourself up for better ultimate financial success on this new parenting journey. If you would like to speak to a CERTIFIED FINANCIAL PLANNER™ to learn more or for help setting up a financial plan for your family, please give us a call at 303-639-5100.