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Money Minute
Quick Tips
Financial Tips for New Parents
Money Minute
Take some basic financial steps to prepare for a new baby.

Having a baby is an exciting milestone. But did you know that it costs about $233,610 to raise a child?! That is not even taking into account college expenses. Here are a few tips for all those new parents and parents-to-be as you embark on this exciting new life chapter.

  • Consider opening an investment account for your child. Instead of relatives buying a lot of clothes and shoes that your baby will grow out of in a matter of months (or even weeks), ask them to contribute to your child’s investment account. This will give your child a head start with investing so they can reap the benefits of the compound growth associated with the stock market.

  • Consider making significant revisions to your monthly budget; if you do not have a budget, this is an optimal time to create one. Plan for at least a 10% increase in expenses. To help prepare for those additional expenses, cut back significantly on unnecessary expenses such as streaming platforms and cable television.

  • Review your estate plan. Be sure to appoint a guardian for your child in the event something happens to you. The guardian is the person who will have legal custody of your child and control over any assets left to them. Speaking of assets, this is also the time to make sure you update the beneficiaries on your 401(k) plan and life insurance policy.

A strong financial foundation will go a long way toward helping you support your new child.

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