Financial Planning for the Parenting Journey

Planning for growing a family is such an exciting time in life – and it can bring up all sorts of emotions. I remember the cyclical wave of emotions I was constantly going through as we were preparing to welcome our first child, our daughter, Nora, into the world in 2021. I was thrilled – I’ve always wanted to be a mom. I was terrified – how would I have any idea what to do or how to know if I was doing well or all the things that come along with parenthood (like everything below).

It’s a journey, and they say it takes a village. And while we won’t necessarily be in your house with your kids (though we’d love to be and they’re always welcome to join our meetings and social events!), we hope we can be together with you on the journey and help navigate all the financial planning considerations that come up on this adventure of parenthood. From first steps to first cars, we’ve mapped out some of the financial steps that come with each phase of your growing family.

At Birth

• Add baby to your health insurance plan. This typically needs to be completed within 30-60 days of birth.
• Update your estate plan to include baby (think guardian(s), ultimate beneficiary, etc.).
• Update your beneficiary designations on your retirement accounts and life insurance.
• Review and consider increasing your life insurance.
• Plan and budget for any hospital bills you’ll expect (you can usually get an estimate through your insurance company website).
• Open a 529 account (determine if it might make sense for a grandparent to open and own as these are no longer included as child’s asset for FAFSA and financial aid purposes).

• Weigh childcare options and costs (nanny, nanny share, au pair, daycare (in-home vs. large center), preschool, stay-at-home parent, etc.)
• Read books about money concepts to your kid(s) – it’s never too early to start teach financial literacy!
• In the later toddler years, start thinking about school options – public, parochial, private, and any associated costs and potential financial aid options.

• Continue encouraging and fostering financial literacy and learning about money. Invite your kid(s) into discussions around money and, if you chose to give an allowance, have conversations about how it can be used.
• Budget for sports, hobbies, interests, summer camps, school supplies, vacations, etc.

• Prepare a driving contract as they approach driving age.
• Encourage budgeting and using their own money from any hourly jobs.
• Consider opening a Roth IRA once they have earned income (they can contribute some of their earnings and you can gift money to them to contribute (up to how much money they earned for the year or the maximum annual contribution, whichever is less)).
• Continue having money conversations and introduce more complex topics – could be around allowance, working, or college planning and financial aid options, to name a few.
• Help your child get their own estate planning documents in place at 18! Once an adult, they are legally their own and any financial or medical assistance you may want to be involved with will need a legal document (being parent no longer grants you that access automatically after 18). Consider getting a will, general power of attorney, medical power of attorney, and HIPPAA releases (whatever the attorney recommends – they are the expert here).

• Make sure they have insurance coverage through you (up until age 26) or on school policies, if offered.
• Have conversations about…
  • Debt
  • Student Loans
  • Credit Cards
  • Good Financial Habits
• Encourage them to think about their future and where they may be headed.

Parenthood is a lifelong journey. It is filled with joy, challenges, and constant change. As your family grows and evolves, so too will your financial needs and priorities. Whether you’re preparing for your first baby or planning for college and beyond, we’re here to walk alongside you. No question is too small, and no moment is too early or too late. We’d be honored to support you at every step along the way – please don’t hesitate to reach out whenever you’re ready.