Creating A Better Financial Plan

Posted on: 23 June 2018

It makes sense to keep regular appointments with your OBGYN when you're pregnant to ensure you and your baby are healthy, but have you considered visiting a financial planner sometime in the next nine months, too? After all, it's not just your financial future on the line now, it's also your child's. While everyone can benefit from sitting down with a certified financial planner, it's especially important to you right now, and to your baby.

Some Of Baby's Care May Be Tax-Deductible

Ask a financial planner about deducting your expenses for childcare. Although you're probably going to take as much time together as possible after the baby is born, you may have to return to work eventually. When you go back to work and enroll your child in any type of formal care environment, you could very well be able to deduct a good portion of those expenses. Knowing what and how to do this beforehand is very useful.

Upgrading Your Home Requires Diligent Saving

If you're hoping to eventually move into a larger home to accommodate your growing family, that's likely going to require a little budget-shifting. Saving for a down payment can be a tricky feat, especially if you're already on a tight budget. Any "extra" money you may have in the works now is destined to be spent on diapers and adorable outfits, among other expenses, so you're really going to have to do some fancy financial footwork to get ahead. Ask a certified financial planner (CFP) to help you figure out how to save money for your future without sacrificing too much in the present.

College Tuition Costs Are Sky-Rocketing

As your child grows and learns, impressing you with clever skills and rapid progress, you're going to start worrying about future education costs. Students are graduating college with staggering debt, and you probably don't want that burden on your child. Ask a CFP how you can start preparing for that expense now, before your baby even enters the world. You could discuss the advantages of a qualified tuition plan (IRS Section 529), where you're given a tax break, along with the opportunity to start a growth fund for your child's future college costs. Solving the problem of paying for college now will lift the burden off you and open a potentially unlimited number of doors for your child later on in life.

As joyful as your pregnancy and the thought of your baby's arrival is, be practical, too. Beyond the love, snuggles and laughter, there are a lot of serious expenses to consider, and most people never truly plan for them. Take an afternoon to chat with a CFP and learn how to navigate your baby's financial future now. It should give both you and your child a significant advantage moving forward in the world. None