Annie Idea's: 4 Financial Things to Get In Order When You Have a Baby on the Way
When you find out you have a little one on the way, there are a million things you start thinking about in terms of preparing. Clothes and baby items, an updated living arrangement, work situations, and decorating a nursery, all come to mind. However, at the top of your list should be organizing these three things so that your child comes into the world with a solid financial foundation in place.
Create a will. No one likes to think about dying, so chances are you’ve avoided thinking about what would happen if you were to pass away. However, as soon as you have children, having planned for this becomes as essential as your will, which is the instrument in which you determine a guardian to raise your children in the unthinkable event that you and your spouse were both to die. It will also determine to whom your assets will be transferred. Get this set up before you have a child because you’ll be so busy once he or she is here that you may put it off indefinitely.
Get life insurance. Life insurance is another thing that people like to put off planning for, but in the event that you or your spouse dies, you want to make sure whoever is raising your child is not worrying about money during such a stressful time. Life insurance can help you pay off your mortgage, fund childcare for a working spouse, and put some money away for your child’s education.
Investigate your health insurance. If you plan to continue working, it’s worth spending some time looking into whether your or your spouse’s health plan will cover your family better. You may have done this already, but with a new baby, you’ll have more medical expenses so it’s probably worth taking a second look.
Open a 529. If you have some extra money in your budget, it’s never too early to start saving for your children’s education. You can open an account in your name before your child is even born. Start contributing this year (to take advantage of the tax benefit) and then transfer the account to your child’s name once he is here.
Annie Idea is a freelance writer focused on how to live large on a little living. She writes financial savings tips for QuickQuid, which provides short term loans. She enjoys taking any idea and making it easier or cheaper to complete.
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