成为父母为成长中的家庭做好财务准备的10个步骤

ForecastYour Expenses Review YourEmergency Evaluate Lifeand Disability YOUR WE ALTH JOURNEY—NAVIGATING LIFE’S FINANCIAL MILESTONESBecoming a Parent: 10 Steps to Financially Prepare for a Growing Family Update YourBeneficiaries Tips for making sure your loved ones Assess YourHealth Insurance Welcoming a new child is one of the most exciting and transformative eventsanyone can experience. It can also have significant, long-term implicationson your finances. It is worth considering how your financial needs and goalswill change once your child arrives and ways you can protect and strengthen Look IntoEmployer Benefits Review YourEstate Plans If you or a loved one are preparing to welcome a child, here are 10 financialsteps to consider. Consider Whether aTrust Makes Sense Start Saving forEducation Research Tax Breaksfor Parents Review Your Emergency Savings NeedsIt is generally advised to keep at least three to six months of Forecast Your ExpensesYour ongoing expenses may rise considerably once your new child arrives—both in the near term and over the nextseveral decades potentially. It is important to understandhow a child will affect your overall financial picture, so you living expenses in a low-risk, very accessible account, suchas a money-market deposit account or savings account, in Recalculate how much you will need to set aside foremergencies based on how your spending patterns willchange after factoring in the additional expenses described Questions to ask as you consider how having a childcould affect your family finances include: Do you and/or your partner expect to keep workingand generate the same amount of income as you did Will you be paying for childcare either in or outside As the child gets older, will other expenses—such aseducation or extracurricular activities—become a Private WealthManagement A wealth advisor can help you review your insuranceneeds by asking questions such as: Evaluate Life and Disability Insurance NeedsYou may already have life and disability coverage, but you may want or need greater protection once a new child is inthe picture. Your or your co-parent’s employer may let youadd or increase your coverage to account for a child, but itoften makes sense to get a policy that is independent from How much income would your family need to maintainyour living expenses and other spending needs if one (or Over what time period do you need coverage? (Many newparents, for example, want to ensure that they are at least What future expenses would you want coverage for?For example, do you want enough coverage to ensure that Assess Your Health Insurance CoverageYou will want to make sure that you have the right level of Update Your BeneficiariesMany financial accounts, including retirement accounts, and insurance policies have designated beneficiaries—the people you elect to receive those assets when you passaway. It is critical to review and update those beneficiarydesignations after major life events, including after having healthcare coverage—both for yourself and for your child. If you are newly pregnant—or ideally before you becomepregnant—check whether your current health plan offersmaternity care and labor and delivery coverage. It is alsoa good time to coordinate coverage with your spouse orco-parent to determine whether to have all family members Private WealthManagement Check to see if your or your partner’s employer offersthe following benefits: Look Into Employer BenefitsMany employers offer benefits that can help reduce the costs of caring for a child. Health Savings Account (HSA):This lets you set aside pre-tax income to pay for your family’s healthcare. The funds do not have to be used in theyear in which the contributions are made, so the money canaccumulate year after year. The money remains tax-freeif you spend it on qualified healthcare expenses. And onceyou reach age 65, you can use the savings to pay for non- Medical Flexible Savings Account (FSA):Similar to an HSA, an FSA allows you to save pre-tax money for qualified healthcare expenses. Unlike an HSA, though,you typically must spend most or all FSA contributions in theplan year you made them—or you may have to forfeit them. Dependent Care FSA:This type of FSA allows you to set aside pre-tax money for childcare expenses, such as paying for daycare, a nanny,summer camp, or before- and after-school care. Generally, Adoption Assistance: Some employers will help their employees cover the costsof adoption, such as agency fees, legal fees, and travel costs. Review Your Estate PlansYour estate plans become more important when you have Consider Whether a Trust Makes SenseIn some cases, you may want to set up a trust to control how the assets are distributed to your child if you were to passaway. A trust allows you to set the conditions and timing forwhen your beneficiaries get access to your money and assets,and for what uses. For that reason, trusts can be ideal for kids, a