Adding to your family is a joyous occasion. Whether through birth or adoption, parenting is an adventure! For new parents or seasoned veterans who are adding another child to the mix, it is important to take a look at your fiscal toolbox as well as your parenting skillset. FED Benefits Center is excited to support you during this new adventure. Here are 3 financial tips to consider when adding to your family.
Costs & Budgets
Having a child or adoption can be an expensive journey even before your new family member arrives. Take a moment to review your health insurance and consider upcoming costs (prenatal care, labor and delivery, etc). Make sure you know what’s covered by your insurer and what is not. Knowing these costs should help shape your monthly budget as well as determine how much you can spend on the basics for your child such as crib/bed, furniture, clothes, etc.
After the happy day arrives, go back and reevaluate that budget. Your health Insurance will be changing as well as your day-to-day expenses. Make sure you account for this so you can enjoy all those ‘firsts’ that are coming your way instead of worrying about ends being met.
Review your Insurance
Making changes to your health insurance is part of the equation most parents account for. However your insurance needs extend a good bit further now that your family is larger. Review your life insurance to ensure you have enough coverage not just for yourself, but your spouse/partner and your children. Ask yourself if something happened to you or the other adults in your children’s daily lives, what is the impact on childcare needs, housing, income, and many other financial factors. While reviewing insurance coverage amounts, make sure to review beneficiaries as well – – not just on your life insurance but also bank accounts and retirement assets to be safe.
Insurance is also crucial in times that are not as drastic as a death. Short-Term Disability coverage is essential for parents. If the wage-earner(s) in the house have to miss work due to illness or injury, consider if is there is protection in place to replace that lost income or cover additional childcare costs.
Look at the Long-term
One trap that many parents fall into is borrowing from the future to cover the present. Ensure your budget is built to allow you to continue contributing to your retirement savings. The earlier that money goes into your retirement account the longer it is at work for you! Same goes for future education expenses for your children. The sooner you start putting aside funds for those needs, the more resources your children will have to tap into for higher education and reduce your stress down the road
Remember, your FED Benefits Center team is here to help you. Hopefully, you’ve come to rely on our expertise, service, and experience to guide you from career start through retirement and we are here for everything in-between. We are excited to share in your joy and are honored to help you protect those that matter most! If you have any questions or want to explore your options call, email, or schedule your review online.