Besides the TLC, it is a parent’s responsibility to protect their child and that includes preparing for their ‘financial future’.
First, update your will, trust and designate a guardian for your child in the event that something should happen to you and/or your spouse. This is a pretty big decision, but it is much better to pick someone that you trust with your child’s well being than to have the courts decide.
Then there is the life insurance; when we add a new ‘bundle of joy’, it is time to increase our coverage to ensure that our child’s financial needs are met in the event that we cannot be there. Term insurance is the most affordable option, but to find out what option is best for your family, contact a local insurance agent for more information.
There will be a lot of added expenses, another mouth to feed and cloth, children can be very expensive. Although, there are some things that you can easily do to save money. You can borrow baby items from family and friends since your child will outgrow them rather quickly. Consignment shops are also great, from children’s clothing to furniture and toys at some really discounted prices. Another way to save money is to make your own baby food, jars and boxes are expensive and home made is always a healthier option.
College may be looking very far off into the future at this point, but once your baby arrives, it is the right time to start a college fund. But, keep in mind, mommy and daddy’s needs need to be taken care of first. Your local bank or financial representative can provide you with more information on budgeting for your child’s college savings plan.
It really is never too early or too late to start thinking about your child’s financial future.