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With parenthood comes a new financial responsibility. If you’re a first-time parent, it may be tough to navigate your new lifestyle. Here are 13 tips you should include on your financial checklist to make the transition as a new parent easier.
1. Update Your Health Insurance
Your health insurance does not update automatically to include coverage on your new addition. You must contact your insurance provider. According to the U.S. Department of Labor, you have 30 days from your baby’s birth date to enroll.
2. Create A Household Budget
Prior to your baby’s arrival, your budget more than likely included a rent/mortgage payment, water bill, electric bill, food, etc. Now that there’s a new addition, things like diapers, formula, and baby wash should be added to the list of necessities. The website thebump.com has a checklist of baby essentials for new parents.
3. Add Employee Benefits
You could be missing out. Contact your human resources department to find out what employee benefits are available.
4. Draw Up A Will
When you have dependents, it’s important to have documentation stating what will happen in the event that you pass away. A will provides piece of mind and can help protect your baby’s financial future. Marine FCU values the importance of financially protecting your loved ones, which is why we dedicated an entire day to helping our members work through this difficult process. Join us for one of our Wills Day.
The benefits of life insurance are priceless when you have a family that depends on you. It can cover funeral costs, replace your family’s income, pay off debt, and so much more. The last thing you want your loved ones to worry about is finances in the event of your passing.
Don’t forget about your financial future when you start a family. It’s important to put money away for when your kids leave the nest and you purchase your dream RV to travel across the United States.
It’s never too early to start saving for your child’s education. With college tuition increasing each year, it doesn’t hurt to get a head start.
8. Create A Fun Budget
Budgeting money for date nights or any fun activity is essential. Being a parent is hard work and you deserve to relax every now and then.
9. Find Free Entertainment
Having fun doesn’t have to cost money. A trip to the beach is a fun, no-cost way to have a good time.
10. Establish An Emergency Savings
If life hands you a little oops or a big oops, you’ll be prepared with an emergency savings. The recommended saving is three months’ worth of financial obligations.
11. Tax Credits
Starting a family can come with additional tax benefits. Consult a tax professional to find out if you qualify for tax credits.
12. Automate Your Savings
Setting up an automatic deposit to your savings will give you one less thing to worry about; that’s more time you’ll have to play with your baby and, change diapers, and maybe squeeze in time to catch up on sleep. You can also set up an automatic bill pay.
13. Have The Money Talk
Money will be allocated differently after your baby’s arrival, so it’s important for you and/or your partner to assess your money situation.
Follow these 13 tips for a happier account and less stress during parenthood. Congratulation on your new bundle of joy!