Family Financials

Big-Picture Items New parents Should Handle Quickly

by Jenna Sherman


Photo Credit: Pixabay

Preparing for a new child can feel like a whirlwind of responsibilities and to-dos. From gathering essentials like diapers and bottles to designing the nursery, expecting parents have a lot on their plates. One area of importance that parents can’t afford to ignore is finances. With so many things happening at once, it can be easy to forget about the bigger picture. However, financial security is something that will continue to ensure your child has a stable life without lacking basic needs. Here are some tips to help new parents take care of important financial aspects.

Life Insurance

Life insurance helps to ensure your family’s financial security in the event of a sudden death. To determine the cost of your coverage, LifeAnt explains providers will perform a blood test that will provide information regarding your cholesterol and glucose levels, your blood pressure, and other aspects of your overall health.

These indicators provide companies a rough idea of how risky a client you would be. The healthier you rank on the test, the more affordable your premiums. Since you want the best coverage for your new family, you might want to cut out some bad habits such as drinking and smoking before the exam to improve your health.

Healthcare Coverage

With every major life transition, you should double-check your healthcare policies to ensure the coverage is sufficient. When you got married, you may have combined your policy with your significant other. Now that you have a child on the way, you’ll have to adjust your coverage. Most policies cover kids for the first 30 days following their birth. This gives parents extra time to decide whether they’ll switch plans or add their child to their current policy.

Having a child counts as a qualifying life event, so you’ll be able to work outside of normal enrollment periods. Get into contact with the HR department of your healthcare coverage and they’ll let you know what documents are needed to add the new member of your family.

Home Buying

For many families, purchasing their first home is a major financial goal. But before you can take this step, Experian points out that you’ll need to save for a down payment. With a myriad of different loan products available, a 20 percent down payment is no longer the standard. If you’re not able to make such a substantial commitment, it’s possible to buy a home with a much lower down payment. Just know you’ll pay private mortgage insurance, and your monthly mortgage payments will be higher.

Small Business

If you’re a new parent who is in the process of starting a small business, make sure you have all of the legal paperwork covered early and as quickly as possible so that you can begin to focus on other aspects of your venture. Addressing things in a professional manner sets you up for success.

For example, make sure you’ve registered your business with the state so that you can legally operate your business. You’ll also need to create a strategy for managing your finances on a regular basis so you can stay on top of things like paying your quarterly taxes. Getting the small stuff squared away can make juggling parenthood and a business a little easier.


Parents want the best for their children. For many people, this means investing in a good education to increase the number of opportunities available down the road. Whether this means paying for a private school or helping pay a portion of college tuition, parents should start thinking about their education finances right away. As the prices of higher education continue to rise, many parents are adjusting their expectations as many only expect to cover 62 percent of their child’s college tuition. Regardless of the amount you can or plan to contribute, it’s important to start saving as soon as you’re financially capable of doing so.

According to NCIOM, financial security is a prime indicator of a child’s health and overall well-being. The sooner parents can create a stable environment for their children, the more likely the kids will lead a happy and secure life. Taking care of the big-ticket financial items is a great way to kick off parenthood in the right direction.

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