When parents welcome a “typical” newborn into their family, it is important for them to take time to evaluate their finances.  

Areas to evaluate and make changes to include the following:
  • Manage Cash Flow and Budgeting – where does your money come from(income), and where does it go (expenses/savings/spending)?
  • Create an Emergency fund in case of job loss, unexpected expenses, etc.
  • Save for own retirement(401(k)/403(b)/IRA), should maximize employer matching contribution.
  • Utilize Flexible Savings(FSA), and Health Savings Accounts(HSA) for health and child care costs?
  • Determine savings vehicle for College Education Expenses – UGMA/UTMA/529/Life Insurance.
  • Risk Protection - purchase Life Insurance(Term) and Long-Term Disability for parents – “what if?”
  • Estate Planning – set up a Will, Trust, Health Care and Financial Power of Attorney, Guardians