Whether it’s your first child or your fourth, there are some financial matters to think about and plan for before and after your child arrives.
Check your health insurance
If you're married, you and your spouse may both be eligible for employer-sponsored health insurance. When you have a qualifying life status event such as the addition of a family member, you may have the opportunity to re-evaluate your health insurance choice. If so, compare plans to see which spouse's policy offers the best coverage. Along with comparing deductibles, co-payments and premiums, don’t forget about dependent care options. You typically have 30 days in which to make changes based on the life status event.
Typically, your baby will be covered under your policy from the time of birth, though you'll have to contact your insurer to officially add your child to the policy. If you're adopting a child, make sure you know when your policy will begin coverage.
Rethink your budget
Some expenses typically increase when you add a child to the household, including:
If a move is in the cards but you aren't able to do it before your child arrives, don't worry. Plan as best you can ahead of time. Request a free copy of your credit report and clear up any issues, compare mortgage rates, request a preapproval, look at real estate listings to get an idea of the inventory available in your price range, get estimates to remodel your existing space (if that's a possibility) and so on.
Will you go back to work?
The decision to go back to work after welcoming a child is a personal one, and often depends on many factors. Maybe you want to work because you enjoy your job, or you need to for financial reasons. Or perhaps you want to stay home and you've spent the past few years shoring up your finances. You may even need to move in and out of the workforce.
If you know you don't plan to return to work, things to consider include:
If you plan to go back to work, take the following into consideration:
When you return to work, try to keep everything in perspective. Working outside the home with young children requires a significant amount of mental and physical stamina. Make sure you and your spouse or partner are sharing household responsibilities and that neither of you is trying to "do it all."
Build a solid financial foundation
You've taken parental leave, gone back to work and things are going smoothly for the most part. Here are some additional things you need to consider:
Planning for a new arrival can be a stressful time and requires careful planning. The team at Busey Wealth Management is here to help clients prepare for the future with tailored solutions. To learn more or find an advisor near you, visit busey.com/wealth-management.
This is not intended to provide legal, tax or accounting advice. Any statement contained in this communication concerning U.S. tax matters is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties imposed on the relevant taxpayer. Clients should obtain their own independent tax advice based on their particular circumstances.
This material is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities.
This presentation is for general information purposes only. It does not take into account the particular investment objectives, restrictions, tax and financial situation or other needs of any specific client.