The baby’s on the way! You’ve got a crib, toys, and a rapidly approaching delivery date. So what else you do need? Kiplinger shares the four must-have financial tools that no new parent should go without…
1. A Budget: Yeah yeah, you’ve already read one of our numerous guides and written a budget, but a baby requires a wholesale re-write. Figure out how you’re going to pay for day-to-day necessities like diapers, while starting to save for long-term budget-busters like college.
2. Life and Disability Insurance: If something happens, you’re not going to be the only one to suffer. Take out life insurance worth four to eight times your annual salary, and consider disability insurance that can covers your whole salary in case of an accident.
3. Health Insurance: Make sure you have health insurance and don’t forget to add your new child to your policy! Check your spouse’s policy and see whose will best accommodate your new baby. Without insurance, delivering a baby can cost more than a semester at college.
4. A Will: Even if you have life, disability, and health insurance, you’re still going to die. Hopefully it won’t happen anytime soon, but if it does, you don’t want a court deciding who’s going to raise your kid. Hire a lawyer and name a guardian to raise your kids and manage your estate.
Crib? Check. Toys? Check. Don’t Forget a Budget, A Will and Insurance. [Kiplinger]