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How to Financially Transition into Parenthood

| February 08, 2017
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Children are expensive —every Tom, Dick and Harry knows that. Thankfully there are several vehicles set in place that will help you lessen the financial burden of starting a family, should you implement them. When it comes to life planning, your best option is to start now —as in yesterday. Having a solid financial plan in place will grant you and your partner the peace of mind in knowing that whatever comes your way, it will be handled accordingly. There is no way to predict what bumps along the road may arise, but here are several ways to make the ride a tad bit smoother. 

Provide the proper health insurance

From the moment your child comes into the world, their health is a priority. Their first few years of life will be a delicate time, filled with more doctors appointments than you can imagine. You will be appointed 30 days after their birth to either add them to your or your spouse’s existing coverage. Take time with your partner to get familiar with the benefits each plan offers and make the decision of which plan will work best.

Secure a life insurance policy

Life insurance provides comfort to families because in the event of the demise of you or your spouse, your family will be able to continue to sustain themselves. Some parents choose to take a policy out on the child as well, should something unfortunate happen to the baby, but that is a precaution to be discussed between you and your spouse.

The typical coverages offered to parents are either a term life insurance policy, or a whole-life insurance policy. As their name suggests, a term policy offers coverage for a select period (or term) of time, while a whole life policy runs the entire span of the insured’s lifetime. To determine which policy will work best for your family, make sure to consult with a professional, and if you have an existing policy, be sure to add your child as a beneficiary.

It’s not a bad idea to plan for what happens to your property either.

Continue to save for retirement 

When you become a parent, your number one concern switches from you, to that of your child. However it is important to continue to reserve money for your future experiences because, not only will it relieve you of financial burdens when you are older, it will also relieve your child from the monetary responsibility of taking care of you and your spouse. Take a look at your employer benefits package and continue to pour into your plan knowing your family will indeed benefit from it in the future. 

Communicate with your spouse

One thing that is for sure about parenthood is that it will bring about a lot of changes. Some of these changes will be welcomed, while others will require discussion. If you and your partner had a strong foundation before the baby was born, you will want to continue to make the effort to build on that strong core. Having a baby will force you to see your partner in a different way, so when disagreements arise, it’s best to communicate effectively to iron out the differences to ensure that you both are raising the child in a healthy, stable and loving environment. When in doubt, always talk it out.

As you can see, there are  a lot of pressures that come along with starting a family. Finances play a significant role in the realm of parenting. While raising a child can be one of the most fulfilling experiences in your life, it is best to proceed with an actionable plan set in place to ward off any potential discord in the future.

Jackie Waters is a full-time mother and part-time farmer and writer. She lives with her family on their three acre hobby farm in Oregon. In her spare time, she writes for her blog at http://hyper-tidy.com/

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