5 Things Every New Parent Should Consider

If you are a new parent, or if you’re about to become one, there is a lot to think about. Some of your priorities might include reading parenting books and making sure the baby’s room is all set up. There are other things you should consider as you become a new parent. 

Saving for College 

You might not want to think about college if you have a new baby. You might be thinking that college is about 18 years away. While this is true, it’s never too early to begin saving up for your child’s education. 

The College Board says that tuition was an average of $34,740 for the 2017-2018 school year at private colleges. If your child is going to college in 18 or so years, that average is only going to grow. It’s best to start saving early so that your child has the opportunity to get a great education. A 529 plan is a common way of saving for college. A 529 plan can also be used for private education for grades kindergarten through 12^th grade. 

Life Insurance 

Life insurance is important because it gives your family what they need in case the sole provider of the family passes away. Life insurance provides your loved ones with the lost income in case of the provider’s death. This means that your family can spend time grieving and not have to worry about finances. They can rest assured that they have the income they need to survive for a little while before finding extra work. 

The best type of life insurance for this purpose is term life insurance. When you get term life insurance, you are getting it for a set term, such as 10 or 20 years. You should choose a term that will last until your children are no longer financially dependent on you. 

Creating a Will 

A will is something that many people don’t like to think about or discuss. It’s another important part of making sure your family is taken care of. In your will, you should name who will be the guardian of your child in case of death. It’s important to let the potential guardians know that you are putting them in the will.  

Be sure to update your will as needed. If you have more children, you will want to add them to the will. All of this will prevent legal battles and other difficulties in case of death. 

Building an Emergency Fund 

Emergencies can happen at any time. They are difficult to manage, even without a child. It’s even more important that you are prepared for an emergency if you have a child. Emergency funds are often used in case of unemployment. 

It may take some time to build up your emergency fund. Put away as much as you can to build it up. In the end, you should have 6 to 12 months of living expenses saved up. 

Budgeting

When people have kids, they begin to realize how costs begin to add up. It costs about $233,610 to raise a child from birth to age 18, according to the Department of Agriculture. By having a budget, you can track your spending along with your earnings. 

When a baby is born, you will have all kinds of new expenses to take care of. Some items, like strollers and cribs, are investments so you might take a big hit when you buy those. Other items, such as diapers and bottles, will begin to add up too. 

That and More 

Being a new parent is hard to navigate. Especially when you realize most people you thought were experts in your life, are just winging it. The best you can do is just get the necessities and the rest