parent and baby grizzly bears against grass background

Financial Decisions & Tips When a Baby Arrives, a podcast recommendation

Motley Fool Answers, March 12, 2019 episode


Grandparents, richer relatives, the best baby gift is to help new parents find and pay for a financial planner.

Summary

Kids cost an average of $250,000-$300,000 total, from birth-age 18, as calculated by the U.S. Department of Agriculture.

Update your will and estate plans

Choose a legal guardian to take care of your kid and a different person to manage the kid’s money who gets along with the legal guardian.

Life insurance

  • 20 years of term life insurance
  • $500K-$1 mil. costs less than $200/year
  • update your beneficiaries

Health insurance

Add the new baby ASAP

Revisit emergency reserves

Take care of yourself FIRST, think retirement.

Don’t overspend

Baby grows out of stuff fast. You need less than you think. Accept hand-me-downs.

Other resources

UPromise: cashback on purchases can use for college

Use a budget tracker to keep spending inline with plan
Work with a fee-based financial planner

Listen or read the podcast yourself. Hope I didn’t miss any of the main ideas. Good luck!

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