Financial checklist for new parents
Couples expecting a little bundle of joy are often overwhelmed by the sheer excitement of it all. In the midst of all the action, some important details may be overlooked, so here’s a simple financial checklist that all new parents should consider!
Tick off this financial checklist for your family
In case of an unexpected emergency, you’ll need to sort out individual life insurance for you and your spouse so that the family is left with some resources to raise your child.
Take into consideration any debts, school fees and housing when picking out a life insurance plan. Will the payout be enough to help your family along in a time of need?
New parents should take some time to think about who they would want as a guardian to raise their child if both parents were to pass away unexpectedly.
You should also ensure that this individual is trustworthy and responsible enough to handle whatever money you leave behind for your child’s upbringing.
If you doubt the guardian’s ability to handle finances well, you can also appoint a financial guardian who will specifically take care of money matters and assets for your child.
Savings plan
If you haven’t already started, start up a fund for your child’s future needs.
If you don’t know where to start, your top priorities should be healthcare and education. You never know what complications may arise in the future, so it’s always best to have some money saved for an emergency.
After your baby is born, call up your insurance provider within 30 days to add your child to your insurance policy.
Most insurance providers are required to cover a newborn for only the first 30 to 31 days of life under the parent’s policy.
Assess your income situation
Take a look at the current income situation and discuss how that may change once the baby comes along.
Will you be extending your maternity leave to spend more time with your baby, or will you be hiring a babysitter once your maternity leave? Do you intend to breastfeed or formula-feed your child?
Try to do a rough calculation of how much you’ll be spending on diapers, formula and other important necessities each month to see if this amount fits comfortably into your budget.
Here are related articles on money management that you might like:
5 common savings mistakes to avoid