If you’re adding a child to your family, it’s an exciting time, but you’ll want to be prepared - especially in terms of your finances.
So, consider these moves:
First, estimate what new expenses you’ll incur and plug these figures into your budget.
And look at what support you might get, such as paid family leave, for taking time off work.
As early as possible, look around for a child care provider.
Child care can be expensive, but you might find low-cost options from local community centers, religious organizations, and nonprofits.
You may want to build an emergency fund to cover six months of living expenses, with the money kept in a liquid, low-risk account.
And contact your tax professional to learn about the dependent care credit and the federal child tax credit.
Also, think about education planning.
Among other options, consider a tax-advantaged 529 education savings plan.
You’ll want to add your new child to your health insurance plan or obtain a new plan.
You might also need to add to your life insurance and get disability coverage.
Bringing a new child into your life is joyful - and by being financially prepared, you can make the whole experience even more rewarding.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor John Dickerson, and Hawes Dickerson. Members SIPC.
