Growing your family

Prepare your financial life for the greatest adventure

You’re welcoming another member. Congratulations!

Having a child is a rewarding process of adding more personalities and lifelong memories into your family, but raising a child in today’s world is no small feat.

Families will spend anywhere between $12,350 and $13,900 annually on child-rearing expenses.

Source: USDA. (2020, February 18). The Cost of Raising a Child.

So, how do you and your family financially prepare for a new child?

Working with a financial professional is a great option to help cover all your bases and clarify the steps you may take.

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Financially preparing for a new child

Budgeting and common expenses

The arrival of another family member comes with significant changes to your household budget. Plan out if you will need to increase the expenses in your budget and how you will adjust to these changes. Develop your budget and start tracking expenses to keep your household on track in a busy time full of change.

Employee benefits and insurance

If you receive an employee benefits package, you’ll want to review and update your policies to reflect your newest family member.

For health insurance, you may want to check with your carrier on how or when to add the child, whether or not your desired pediatrician is within your coverage, what will be covered for check-ups, and so on.

If you have a life insurance policy, you may want to consider increasing your policy for the future, as well as adding in your new child to the policy.

Additionally, review your disability insurance policy to ensure you have an appropriate policy with the addition of another family member.

College funding

The idea of funding college for your child at this point may seem premature—however, with the costs of attending college on the rise, starting as early as possible could give you an advantage. Discussing your college funding options and how much you can set aside for college now with your financial professional can reduce stress later on.

Other financial goals and considerations

You may want to start saving for a down payment on a new home or consider changing beneficiaries on your accounts. Your financial professional can help you navigate these items, while considering your other financial goals.

How we can help

Preparing for the arrival of the child can be incredibly busy getting all preparations completed in time. Thinking ahead and getting organized can help you and your family to enjoy the company of your new member, rather than worrying about finances.

North Star Resource Group has over 160 financial professionals who are providing parents with guidance and encouragement.

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