Watching your family grow is an exciting time in life, however a growing family leads to growing financial needs. Metlife states, “On average, each child adds $12,980 to the annual family budget — and that’s not counting college expenses.” It is important to sit down with your partner and financial advisor to develop a game plan for your growing team.
Talk to your HR
It is important to check with your employer’s Human Resources department to inform them of your new child. If you have insurance through your employer, make sure your health and dental policies are updated so your child is covered. It is also important to confirm your amount of paid and unpaid time off to plan accordingly.
Evaluate Life Insurance
While you are ensuring your child has proper insurance coverage, take a look at your life insurance policy. You want to protect your loved ones, so ensuring your insurance policy covers you and your family’s needs is important.
Plan for College
While you may not be thinking about your child’s education when your baby is born, it will be here before you know it. With the power of compounding interest on your side, start investing into a college fund as soon as possible.
Consider Long-Term Costs
You may find that your home and car fit your needs right now, however those needs change as your family continues to grow. Planning ahead for these expenses can help you be more prepared when the time comes.
Its important to have a plan for who will watch the child on a daily basis. If a spouse plans to stay at home, there are financial implications that should be considered. If you plan on placing your child in daycare while both parents work, that expense needs to be accounted for when planning for baby.
Welcoming a new baby into your family is a very exciting time. Financially preparing before birth can help reduce stress and allow you to spend time with your new bundle. Our team of financial advisors can help you navigate finances for a growing family.
The information provided here is for general information only and should not be considered an individualized recommendation or personalized investment advice. All investing involves risk including loss of principal. No strategy assures success
or protects against loss.