Having a Baby? Here Are 5 Financial Moves to Make If You’re Expecting
There’s plenty to think about and plan for before baby’s arrival. However, some parents are not sure what they need to do about money and finances before their child arrives. A new child brings new costs, but also the need to save more and invest wisely. Your local bank can provide you with help every step of the way. Here are five ways to focus on first.
#1: Get Insurance Straightened Out
The first step in the process is to have your new child added to your health insurance plan. You can do this ahead of your child’s arrival, though you may need to take additional steps later after the child is born. Talk to your insurer about any added costs this may create for you, too.
#2: Invest in an Emergency Account
Having a well-funded emergency account is important now. It can provide you with the financial support necessary if you need to take some time off from work for your new child. And, it can help in case there are concerns such as job changes, illnesses, or extended time off.
#3: Consider College Savings Accounts and Investments
Your financial institution can help you with this, too. If you establish a college account now and contribute to it each month, it will cost less to fund than you may realize. That is because interest compounds over time, building value you can count on. There are numerous tax advantages to these accounts as well.
#4: Get Disability and Life Insurance in Place
As a parent, you now have a dependent relying on you for financial support. But, what happens if you get sick? What if you cannot be there with your child throughout his or her life? This is where disability insurance and life insurance can help you.
#5: Create a New Budget and Stick to It
Diapers, new foods, and plenty of toys will keep your budget constantly under strain for the first few months and years. But, if you have a budget and you work towards maintaining it, you may be able to avoid some of the hiccups or relying on credit too much.
With the help of your local bank and insurer, you may be able to overcome some of the financial worries you have before your child arrives. Creating a plan like this can give you the incentive you need to continue to work to build your financial health.