Once a baby enters the world, parents want to freeze the moment in time. But like everything else, life goes on. After that first instant of exaltation in the delivery room fades, reality comes immediately into focus. Here are several financial tips for new parents.
Your family just got larger, even if it was technically only by a few extra pounds. Still, a new baby is a new person. Generally, health insurance policies allow for 30 days from their date of birth to add your child to your plan. The sooner you do it, the sounder you’ll sleep. Even if worrying is a perennial parental pastime, coverage is one thing you shouldn’t worry about.
Thankfully, day care doesn’t happen overnight. You have some time, but probably not as much as you think. Start looking into possible child care centers and home help during the first months. Begin early and don’t let this financial responsibility sneak up on you.
Your baby comes first. Parents understand that. Because the welfare of your child is so important, adjust your will to designate their guardians. Few things matter more.
Eye on Retirement
In the aftermath of a child’s birth, most parents throw themselves fully into every aspect of the newborn’s life. And there’s nothing wrong with that. But don’t lose sight of your own career goals and retirement plans. Ultimately, these decisions affect your children too. Your lives are interwoven and that’s why neither should be ignored.
Crib to College
Today they’re crawling, tomorrow they’ll be walking and talking and in 18 years, well, you get the idea. Kids grow up fast and even with lots of time, saving should start right away. Open a college fund for your little ones during their first year.
Are you a new parent or expecting the arrival of a child? Tell us what financial lessons you’ve learned or wished you knew. We’d love to hear from you on our Facebook or Twitter pages.