Having a baby is an exciting time for new parents, but important financial advice is necessary to help them through the first months of parenthood and to protect their financial future. New parents should plan for a budget that prioritizes saving money versus paying off debt and that balances saving for college and retirement in the first few years of their newborn’s life. Another important financial decision is whether one or both of the parents should cut back time in the workforce to stay home for childcare. It is important for new parents to understand the benefits of continuing to work versus staying home. Accordingly, if the decision is not to stay home, then new parents will need to grasp the financial impact of paying for daycare. Further, life insurance coverage will vary depending on the situation, but with such heightened costs, life insurance will be an important financial asset. And finally, new parents will want to make sure their estate plan is properly managed for the benefit of their newest family member.
See Kevin McKinley, Six Financial Planning Steps for Expecting Parents, Wealth Management, March 31, 2017.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
