Atlanta Financial Blog

Four Financial To-Do’s for New Parents

Chris Blackmon, CFP®, CPA
February 12, 2019

We were recently blessed to welcome our second daughter, Elizabeth. This being our second, I think we are somewhat better prepared for how our lives would immediately change. These first few months are filled with joy and excitement (as well as exhaustion coupled with just trying to figure out what we are doing). While I have no advice on how to get your newborn to sleep on schedule, I can give you some advice on some financial matters all new parents need to address (and soon for some of these):

1) Add your new baby to your health insurance. Having a child qualifies as a life event, which allows you to make changes to your insurance plan outside of open enrollment. Most plans only give you 30 days from their birthday to add them to your plan. You will typically need a certification of birth from the hospital or a birth certificate.
2) Review current life insurance coverage and determine if it meets the needs of your growing family. If you lost one spouse’s income, would it be hard to continue your current lifestyle? Be honest with yourself – if you aren’t currently saving one of your incomes, you likely need more coverage. We generally always recommend term insurance for new parents, which can be quite inexpensive.
3) Update your will, beneficiaries, and withholdings. Your estate planning documents need to be updated to include your new baby. This will also involve updating any beneficiaries on current insurance policies and retirement plans. You also may want to consult your CPA to see if you should change your withholding elections as you likely will qualify for the newly updated $2,000 child tax credit (per child).
4) It is never too early to start thinking about college saving. Estimates range about what college will cost for a child born this year, but expect public, in-state college to cost $150,000 to $200,000 by the time your newborn reaches 18. I believe 529 plans are the best way to save, and starting early means you will need to save a lot less (and could help your child avoid burdensome loans later in life).

I can’t guarantee following these steps will help your child sleep through the night, but you should at least rest easier knowing your family’s financial future is on a solid foundation. Stay tuned for more tips on how to build the financial future for your family that they deserve. I would love to discuss my approach to each of the above or answer any questions you have!

Chris Blackmon can be reached at 770-261-5386 or [email protected]

Please email [email protected] to subscribe to the newsletter.

Share This:

Share on facebook
Facebook
Share on linkedin
LinkedIn
Share on twitter
Twitter
Share on google
Google+

Understanding Inflation in 2021: What Investors Need to Know

Following a year of economic instability, it appears that many of us are turning our attention to something that’s been around for decades, but has recently piqued national interest – inflation. In fact, a recent study found that people are Googling the word “inflation” at a rapid rate, with a peak not seen since 2010…

Read More »

Why Women Need to Plan for Long-Term Care

As mothers, sisters and daughters, women are often counted on to be caregivers for family members in need. Whether it’s something as small as a cold or as debilitating as a terminal illness, women are typically the ones to care for and help out when a loved one is sick. But what happens when the caregiver is in need of her own care? Too many women are stuck facing this dilemma head on, instead of preparing for it while there’s still plenty of options, resources and time ahead. Below are a few reasons why it’s so important for women to plan for their own long-term care strategies now.

Read More »