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Clear & Simple Home > Families > Starting a Family
Starting a Family
Having a baby or adopting a child is perhaps the most rewarding undertaking of our lives. We nurture our children, worry about them, love them, and protect them. We want them to grow up in a stable world, one in which they are safe and financially secure. Achieving this can be a challenge-even before you start paying for a college education. Take steps to protect your child's financial well-being, and your own, by doing the following:
- Start building a college fund now. College costs are expected to keep rising, but you have years to save and invest.
- Revise your will, making sure to update your beneficiaries and name a legal guardian for your child.
- Update your budget to account for new costs, such as diapers and childcare, and to be sure you have adequate savings for emergencies.
- Consider buying a new home for more space or a better neighborhood, or take advantage of a home equity loan to make improvements in your current home.
- Think about your life insurance on you or your children. If you die while your children are still young, the insurance proceeds can replace your income and help them-and your spouse-meet their dreams and achieve their goals.
- Consider disability insurance. If you become disabled and cannot work, disability insurance can pay benefits so you can continue meeting your financial obligations.
- Consider life insurance on your child. Some life insurance policies accumulate cash values that can be borrowed to cover, for example, education expenses or a down payment on a first home.
- Remember to think about the tax implications of the new addition to your family. Adoptive parents can potentially claim a federal adoption tax credit.
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