Adding a new member to the family is a joyous, and truly amazing, life-altering event. The sooner you begin thinking about – and planning for – all of the additional financial considerations that come with a growing family, the more prepared you'll be.
- This is a good time to carefully reevaluate all your insurance coverage, including health insurance, to make sure that it appropriately accommodates and protects your new addition.
- Start a college savings plan before or with the arrival of your new addition. The earlier you begin, the easier it may be to accumulate significant funds, letting compound interest work its magic.
- Many people draft their first will or revise an existing will upon adding dependents to their family. A will helps ensure that your wishes – regarding guardianship, inheritance and other issues – will be followed in the event of your death.
- If your employer offers a flexible spending account for child care expenses, you may want to take advantage of this benefit. It allows you to pay up to $5,000 in child care expenses with money that is exempt from federal income, Social Security, and Medicare taxes.