Financial Checklist for New Parents: How to Prepare for a Baby
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Welcoming a new child—whether by birth or adoption—is one of life’s greatest joys. But alongside the excitement comes a big financial shift that you’ll want to prepare for.
- Budget and Cash Flow: What’s the Impact? Revisit your budget to account for new expenses and potential income loss if one parent stays home, and check for employer benefits like childcare subsidies.
- Savings and Insurance: Are You Covered? Consider using cash gifts for a 529 plan and review your HSA contributions and life insurance to ensure adequate coverage for your growing family.
- Health Insurance and Tax Benefits: Don’t Miss Out. Notify your health insurance provider to cover your new child and ensure your pediatrician is in-network; also, review your tax situation for potential new credits.
- Long-Term Planning: Time to Think Ahead. Use this opportunity to update your long-term financial plans, including saving for future expenses and ensuring your estate planning is up-to-date.