Baby-ready In Nine Months
Parenthood demands special financial care
A baby will change your life - and your finances. Take a deep
breath and take heart:
Here are nine ways to prepare financially
MONTH 1: Ready, set, save Pay down debt and start an emergency fund with three to six months’ worth of living expenses.
MONTH 2: Budget, baby Your post-baby budget will depend on
many factors. To figure out how the numbers shake out based on
your parenting decisions, check out BabyCenter.com’s First-Year
Baby Costs Calculator (baby-center.com/baby-cost-calculator). And
don’t forget to talk to your financial advisor, too. Having a baby is a
major life change that could impact your goals and financial plan.
MONTH 3: Take care of childcare Investigate your childcare
options early. Perhaps a family member could care for the baby while
you work, or you could share a nanny with another couple. To
increase parent-baby bonding time, you and your partner might both
consider taking leave under the Family Medical Leave Act, or paid
family leave if offered. Fill out the FMLA paperwork as soon as you
know the estimated dates of leave and return.
MONTH 4: Break the news at work Many women wait until
after the first trimester to tell their boss about their pregnancy. Others
wait until their baby bump calls attention. Just make sure to communicate in a professional way and expect to answer questions about
your return to work after delivery. Think about telecommuting or
job-shar-ing options, and remember, federal law protects mothers
from unfair hiring and firing practices.
MONTH 5: Gather diapers and wipes The amount of baby stuff
pitched to new parents can be overwhelming. All you really need is a
new car seat, diapers, wipes, clothing and a place for baby to sleep.
The rest is optional, and you can save money (and the environment)
if you buy some gear secondhand. Just be sure to do your research
and check for recalls.
MONTH 6: Get savvy about insurance Put a plan in place for
the unthinkable. Review the life insurance offered by your employer,
then consider supplementing it with a term or whole life policy.
Disability insurance is also a good idea - between the ages of 35 and
65, you’re more likely to become disabled than die. Your advisor can
help guide you toward coverage that best fits your situation. One last
thing: Make a reminder to add your baby to your health plan as soon
as possible after birth.
MONTH 7: Make a will You’ll need to plan for the care of a
minor child in the event both parents die at the same time. Work
with your financial advisor and qualified estate attorney to make sure
your bases are covered. And if you already have an estate plan in
place, be sure to review and update your documents with the appropriate beneficiary information.
MONTH 8: Sock away money for education You’ve been saving
since the start, right? If you’ve got surplus dough in the bank when
junior arrives, you can use it to start a college savings account.
Choose from a 529 savings plan or a Coverdell Education Savings
Account, among other options. However, don’t divert funds from
your retirement account to the college fund.
MONTH 9: Reap the tax benefits In 2014, you can claim a
$3,950 exemption for having a child, as well as a refundable child tax
credit of up to $3,000. You also may want to adjust the amount withheld from your paycheck for taxes. The first year of baby’s life is hectic - checkups, first smile, first teeth, first steps - so it’s a good idea to
get as much done before delivery day as possible. When your little
one arrives and your to-do list is checked off, you’ll thank yourself
for baby-proofing your finances. Parenthood demands special financial care A baby will change your life - and your finances. Take a
deep breath and take heart: Here are nine ways to prepare financially.
9MO. CHILD-RELATED EXPENSES AVERAGE $12,600 $14,700 EACH YEAR
U.S. Department of Agriculture
The information contained herein has been obtained from sources considered reliable, but we do not guarantee that the foregoing
material is accurate or complete. Raymond James is not affiliated with any other entity listed herein. You should discuss any tax
or legal matters with the appropriate professional. (c)2014 Raymond James Financial Services, Inc., member FINRA/SIPC.
Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC, and are not insured by FDIC, NCUA,
any other government agency or any other financial institution insurance, are not deposits or obligations of the financial institution, are not guaranteed by the financial institution, and are subject to risks, including the possible loss of
principal. Raymond James is not affiliated with the financial institution or the investment center.
Investment Advisory Services offered through Raymond James Financial Services Advisors, Inc. 14BDMKT-1487 CW 7/14
Kathy Greeneway is a Certified Financial PlannerTM located at First Dakota National Bank, 225 Cedar
St., Yankton, SD, 605-665-4943. Securities offered through Raymond James Financial Services, Inc.,
Member FINRA/SIPC, and are not insured by FDIC, NCUA or any other government agency; are not
deposits or obligations of First Dakota National Bank; are not guaranteed by First Dakota National Bank;
and are subject to risks, including the possible loss of principal. First Dakota National Bank and First
Dakota Brokerage Services are independent of Raymond James Financial Services.
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