Financial Planning for New Parents
Preparing for a child involves significant financial adjustment. Creating a financial plan early helps ensure your family’s security and peace of mind during this exciting transition.
Step-by-Step Financial Checklist
- Build an Emergency Fund: Aim to save 3 to 6 months of household expenses to cover unexpected medical bills or income loss.
- Get Life Insurance: Ensure both parents have adequate coverage to protect the family’s future financial needs.
- Review Health Insurance: Add your newborn to your health insurance plan within the enrollment window (usually 30 days from birth).
- Start College Savings: Open a 529 plan or college savings account early to let compound interest grow over 18 years.
Use our College Savings & Growth Planner to estimate your savings goal and establish a monthly savings plan.