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Becoming a parent

Having a child can have a major impact on your financial situation. Granite Wealth can help you develop a plan as your family grows.

Plan a budget for:

  • Groceries. New expenses, like diapers and formula, will add up quickly.
  • Housing. You may need more space as your baby becomes mobile.
  • Transportation. A larger, safer or more reliable vehicle may be something to consider.
  • Clothing and household items. Stocking up on baby essentials, such as furniture, bedding and clothing can be costly. Your monthly budget will increase as well as your child's needs (and sizes) change.
  • Medical. Higher insurance premiums, doctor visits and prescriptions should be considered.
  • Child care. Compare the cost of professional child care against what you'd lose in annual income if one parent quit working to stay home.
  • Education savings. There are a variety of investment strategies that allow you to make monthly contributions into a savings fund. These can include Coverdell Education Savings Account (CESA), a 529 plan or buy Series EE or Series I savings bonds. A UTMA custodial account could also be used to save for college.

A helpful calculator is: http://www.calcxml.com/do/bud02?skn=73

Additional things to consider:

  • Review your employee benefits to consider your new baby, including health care, life and disability income insurance options? Do you need additional insurance protection?
  • Do you have a plan to review and update your beneficiaries?
  • Have you executed or updated a valid will? Should you designate a durable power of attorney or health care proxy?
  • Have you discussed ways to resolve competing needs to save for retirement and education?
  • How might your federal and state income tax situation change? (e.g., child credits, exemptions, use of flexible spending accounts)?

As you begin to plan for your new child’s education, a helpful planning calculator is here – and can help you determine how much you should be putting away for college. Go to: http://www.calcxml.com/calculators/saving-for-college?skn=73

Contact the Granite team to see how a comprehensive financial plan can help your family plan for the future: Contact the Granite team.