Welcoming a new child to your family is a joyous occasion, but it takes a little financial finesse. If you haven’t already, you will soon be receiving all sorts of information about how to save money on things you need. While information on diapers and formula generate the bulk of the mail you’ll receive, consider also what is required to adequately protect your child and your family financially.
Before your new child arrives—whether through birth or adoption—consult your HR department about how to make additions to your health insurance plan. You may also want to inquire about parental leave benefits so you know how many weeks of income you will lose. Remember that Family Medical Leave Act absences are not required to be paid.
If you are in the planning stages of expanding your family, now is a good time to work with your financial advisor to build up your rainy-day fund and a short-term investment account that can be used to supplement lost income while you are out on unpaid family leave. Such a fund can also help pay for additional expenses in the event your employer offers paid family leave.
You may also wish to begin a long-term savings fund for your child—for college, for future expenses, or even for their retirement. All of those are wise and kind decisions that can make your child’s future a little easier. There are savings options for every budget, so talk with us about getting started. It’s never too early…or too late.
