Thursday, January 19, 2017
Important Financial Steps You Should Take After Welcoming A Newborn
It’s so important that you think about your finances when you welcome a child to the world. After all, you now have a responsibility to take care of the baby until it reaches adulthood. And you need to ensure you have the funds to be able to do this. Therefore, here are some important financial steps you should take after welcoming a newborn.
Set up a will
You will be surprised how much you start thinking about the future when you are expecting a child. After all, you want to be around for as long as possible for the child. And you want to ensure that even if something does occur, your child is protected financially. Therefore, you should enquire into setting up a will when you have a baby. Go along with your partner and make you put clearly what you want to be passed on to your child. You should also talk about what will happen if you and your partner pass away unexpectedly. After all, you might want a friend or family member to look after the child until they are old enough. And you might want money to put aside for them to have once they have become an adult. It’s best to get a will sorted sooner rather than later as you don’t want your child’s future to be unclear.
Get life insurance
Another important thing you should do once your baby has arrived is get life insurance. After all, you need to ensure your child has funds to live if something happened to you. And they should get a good payout which will ensure they have a good life in the event of your untimely death. You might want to get one which is specific for a particular term. For example, you could get one for 20 years, and then reassess what you require after this. You can find out about the best term life insurance by looking online on comparison sites.
Set up a savings account
You also need to ensure you have a savings account. After all, there will be many things you will need to put money aside for your child. For one thing, you will need to put money away so that you are able to buy things like clothes for your child. And you will want to put money aside for their education. After all, if you want to send them to a private school, it can cost you a small fortune. And then further along the line, you will need funds to send them to college. As we said before, a four-year course can cost around $19,000 a year! So it’s best to put money away as soon as possible to ensure your little one has the best future. And if you want to ensure the money doesn’t get confused, you could make a separate account for the baby. That way, you know it’s specific for your child. And you could even put money in there for them to use when they are old enough.
And don’t forget to keep putting money aside for your retirement fund. As this article says, it will stop your little one having to fund you in old age!