It’s a big moment when a new addition comes into the family! Along with the happiness and cuddles, some critical decisions must be made regarding your financial planning. Insurance can be a great tool to help with that.
When you decide to have a baby, your life changes–a lot. You now have to take care of someone else!! And not just physically – you have to consider a long-term and safe plan for the well-being of this new little person! That’s a lot of responsibility! But it’s also really great. Along with the new baby comes some new financial decisions to make.
Adding your child to your health insurance plan is an excellent way to make sure they are covered in case of an emergency. You can usually add them to your plan online or by calling your insurance company.
Other Insurance and Financial Decisions to Consider
Do You Need A Bigger Home?
If you’re cramped for space, now is the time to look for a bigger place. You don’t want to put off this decision as babies will grow quicker than you expect. It’s best to get the process started early. Top considerations to think about:
- How many bedrooms you’ll need.
- Whether you want a yard.
- What kind of neighborhood do you want to live in.
Also, note what school district areas you are in, as this will decide where your child(ren) is educated. You’ll also want to consider all the safety features in your home to keep your growing family secure.
Insuring Expensive Gifts
Now that you have a baby, people will want to buy them gifts! It’s great to have generous friends and family, but you should also be aware that these gifts can sometimes be quite expensive. Things like keepsake jewelry or other valuables are common gifts for newborns, so you want to ensure these treasures are protected. You may want to consider getting insurance for these items in case they are lost, stolen, or damaged. This way, you can replace them without worrying about the cost.
Upgrading to a New Vehicle
If you’re still driving around in your old hatchback, now might be the time to upgrade to a bigger and better car. With a baby on board, you’ll need something more spacious and practical.
Look for a vehicle with plenty of room for all your baby gear, and make sure it has good safety ratings. You may also want to consider getting a car with automatic doors and windows, so you don’t have to worry about fumbling with them when you have your hands full. Also, consider your seating arrangements and the ease of getting car seats in and out of your vehicle.
Make a Plan for College
It may seem like your baby just arrived, but believe it or not, they’ll be off to college before you know it. It’s never too early to start thinking about how you will pay for it.
There are a few different options when it comes to college savings plans. You can open a 529 plan, tax-advantaged savings account for education expenses. You can also start saving in a regular investment account, like a Roth IRA. Talk to a financial advisor to see what college savings plan is right for you and your family.
Whatever you do, it’s essential to start saving for college as early as possible. The sooner you start, the more time you have to let the money grow.