These financial tips for new parents can help get you started.
Create a family budgetAnyone can create a budget, but as your family expands, it becomes even more important to stay on top of your finances. You can use it to track everything from the costs of diapers to your savings for childcare. Since a budget is the foundation of a good financial future, it's also a good practice for your kids to learn as they grow. Smart money management and building a small savings account are great ways to have your kids learn about finances from an early age.
Think about saving for collegeWhen your baby is just a few weeks old, the idea that someday they'll head off to college seems so far away. Ask any parent, and they'll tell you time flies and that day arrives much sooner than you think. That's one reason why it's important to consider how you're going to pay for higher-education now. Costs of college will continue to rise, and starting a 529 college savings plan is one way to help you save for the big day.
Consider life insuranceA lot of young parents think they don't need life insurance. After all, if you're young and healthy, what's there to worry about? Unfortunately, the unexpected is always lurking around the corner. With children in the picture, many parents want to make sure they are taken care of in case something happens to them. Your life insurance death benefit can help your family pay for your funeral expenses, as well as any debts, your mortgage and college expenses.
Explore disability insuranceYour life insurance policy is there to help protect your family after you pass, but what happens if you're injured in an accident or get ill and can't work for a few months? That's where disability insurance can help. With disability coverage, you can still get a percentage of your income over a set period. So, if you can't work, you won't completely lose your income — which could be financially devastating for many families. It's important to note that qualifying conditions will apply to a disability insurance policy.
Review your estate planning
As your family expands and new big life moments, such as marriages and kids come into the picture, it's always a good idea to review your long-term estate planning. If you have a plan in place, you might want to update your will and beneficiaries to include your newest family members. If not, now is a good time to start the estate planning process. Creating a will is one way you can help protect your family even after you've passed.
Parenting is one of the most rewarding things you can do in life — focusing on your family's financial future can help give you peace of mind that they'll be protected now and into the future. Ready to start planning? Check out this financial checklist for having a baby.