While every new parent is probably aware that their household expenses are going to increase exponentially once they begin a family, they may not realize the extent of the financial decisions that they need to make. Before you start the journey of parenthood, you must make crucial financial decisions to ensure your family’s security. Here are three things to consider before you become a parent.
Life Insurance
Life insurance is designed to protect you and your family from a variety of worst-case scenarios. There is no better time to buy into a life insurance plan than when you are young and healthy, making this the ideal time to start building security for your family. There are a number of life insurance calculators that can help you discern how much coverage you need to purchase. In addition to life insurance, primary breadwinners will want to look into purchasing disability insurance to protect against loss of income. Be sure to shop around for the best pricing and policy parameters.
Creating a Will
It is never easy to think about setting up a will when you are just starting this exciting journey in life. However, it is critical to have these plans in place in the event of an untimely death. Setting up a trust can help you avoid costly court proceedings to determine where your wealth goes in the event of your death. In addition to setting up the guide for your finances, you also need to appoint somebody as a guardian of your child. You do not want to take chances with these important matters.
Start Saving for College
It is hard to think about saving for college when your precious bundle of joy is just starting out in life. However, the college years will be here before you know it. Even if you do not think you can afford to save for this expense now, keep in mind that the smallest amount will grow exponentially over the years. There are numerous 529 plans to choose from, making it easy to find the best route for your personal needs. As a bonus, you will also see the tax advantages of putting this money away now.
Do not take risks with the financial health of your family. Taking these steps before you start your family will give you peace of mind so that you can fully enjoy becoming a parent for the first time.
If you need help planning for your financial future, contact us so we can help you make the best plan for you and your family!
