Expanding Your Family
There’s no doubt about it – adding a new family member is an incredible, life-changing event. The earlier you begin planning for the financial impact of your growing family, the more prepared you’ll be when it happens.
There are so many things to think about when planning for your new addition. Luckily, many of the financial choices can be made very early. Consider starting with the tips below.
- Start a college savings plan as soon as possible. The earlier you begin, the easier it may be to accumulate a significant amount of money thanks to compounding interest. Consider opening a 529 college savings account or prepaid tuition plan in the state where you live. Many states offer income tax incentives for state residents, such as a tax deduction for contributions or a tax exemption for qualified withdrawals. To search for your state's available plans, click here:
- Carefully evaluate all of your insurance coverage including health insurance. If your employer offers a flexible spending account, consider taking advantage of this.
- If you haven’t already, either draft or revise your will to ensure your wishes will be followed in the event of your death.