3 Simple Financial Resolutions for New Parents
As a new or expecting parent, there’s always a lot on your mind. Is your baby eating enough? Are his needs being met at daycare? Is she hitting standard developmental milestones? Sometimes it seems like it’s a struggle just to get through the day, let alone the year or anything further in the future. But when you’re a parent, you have to provide for your child’s day-to-day needs and his or her future. Get off to a great start in 2017 by considering the following three financial resolutions for new parents.
Create an Estate Plan
If you don’t already have the basic estate planning tools in place, the new year is a great time to cross this off your new parent to-do list. Carefully thought-out estate planning documents help to make sure your children are both physically and financially cared for if the unthinkable were to happen and you passed away. Considering a will and a trust will help give you peace of mind, knowing your kids would be cared for no matter what. Lastly, while you’re updating your planning documents, make sure your powers of attorney are up-to-date as well.
You probably added your new bundle of joy to your health insurance right away, but have you thought about how having a child affects your need for life and disability income insurance? Now more than ever, a temporary or long-term loss of income could affect your ability to cover your own expenses and provide for your child. Ensuring you have adequate disability income insurance will help protect your income and lifestyle in the event you’re unable to work due to disability.
And if you haven’t purchased life insurance in order to protect the financial future of your growing family after you’re gone, now is a great time to consider doing so. Fortunately, the monthly cost of life and disability income insurance, especially while you’re young and healthy, is probably less than you think and worth the peace of mind knowing your family is protected from the unexpected.
If you’re expecting or have just welcomed a baby within the past few years, college may be the last thing on your mind. But believe it or not, in about 18 years, college may become a reality for your little peanut. If you plan to help your child with college, starting to save early can help minimize the financial strain. Consider these five steps to help make saving for college more manageable.
While there’s never a shortage of things you “should do” as a parent, tackling these three financial resolutions in 2017 will help give you peace of mind and your kids a solid financial start. Your kids can thank you later.