A few weeks ago Corey and Rachelle tackled teaching kids about money on Financial Clarity for Doctors. This week they dive into a few financial preparations that you can take on as a household when you are expecting. If this is you – get ready for some big changes!
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A financial checklist for when you’re expecting:
- Review your insurances.
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- Do you have enough life insurance? Protect earnings, but also economic value brought into the household by non-income-earning partners.
- Review health insurance options to decide on the best option for prenatal and postpartum care, but also well child visits.
- Do you have enough disability insurance to fully-protect your income?
- Review any short-term expenses including time off work and getting baby all set up.
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- If possible, pencil in some extra for help when baby arrives. Cleaning, food, etc.
- Walk through a hypothetical budget for after baby has arrived. Pencil things in like diapers, but also childcare and college savings if that is a goal.
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- Look into childcare EARLY. Waitlists can be long, and you don’t want to deal with that added stress later on.
- Discuss your goals for college savings, but don’t ignore your own goals. Your kids might be upset if you’re still working at Age 70, because you wanted to put them through school.
- Get a basic will and estate plan in place
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- Specify who you want to care for baby if you are not able to do so.
- Make it official, preferably with an attorney.
When you bring a little one into the family, everything changes – both financially and in every other way you can think of. Keep in mind that you cannot “save up” to support a child long-term. It will be an ongoing expense, likely for decades. We all want to do what’s best for our kids, but make sure to prioritize your well-being too (financial and otherwise). Best of luck to you all!
For more financial planning tips from Corey and Rachelle, find them on social media!LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter: @CoreyJanoffCFP and @RachelleFinance