Financial Considerations for Expectant Parents
With a new baby coming into your life, there are many financial considerations to take into account. Here are a few things to keep in mind:
- Do I/we have life insurance?
- How much life insurance will our family need?
- Which kind of life insurance is best for us: universal, variable, or term?
- How do I/we add a child as a beneficiary on existing insurance policies?
- What is my or my partner's family leave policy at work?
- What benefits am I entitled to under the law?
- How long could I or my partner afford to miss work while on family leave?
- Are there other things I/we can take advantage of at work (education assistance, on-site day care, etc.)?
- Do our employers offer flexible spending accounts?
- Does my employer offer a disability plan? If not, how/where can I get one?
Home and Car
- Is my/our home large enough for a family?
- If not, how much home can I/we afford?
- How long will it take to save to buy a new home?
- Is my/our home insured?
- Do I/we need to purchase a different car to accommodate the new baby?
- Do I/we have enough car insurance?
Spending and Saving
- Do I have a budget for baby clothes and furnishings?
- Can my partner and I afford to live on one income?
- If I'm adopting, how will I/we pay for the adoption costs?
- If we need fertility treatments, how will these be financed?
- What are my/our child-care options?
- How much does child care cost in my/our area?
- How much will I/we need to save to send my child to college?
- Do I/we have six months of living expenses set aside in case of emergency?
- Do I/we have adequate retirement funds?
- Do I know how to claim the new child and child-care credits on my taxes?
- Do I and/or my partner have a will?
- Who would I/we want my/our child's legal guardians to be?