Children are a bundle of joy, but they also cost a lot – from diapers and clothes that quickly get too small to extracurricular costs and clothes that quickly go out of style. Avoid money surprises or crises by making sure you plan and save for the needs (and wants) that your bigger family will bring. Also, if you save up some emergency funds, you'll want to make sure to recalculate how much you need to save to account for the added family costs of a new child.
How Everence can help
Download our free budgeting guide and our digital cash flow plan template to get started with your budget. The guide will walk you through the details of making a budget and you can use the template to personalize it with your numbers. Each month, fill in your expenses to check if you're on track.
You can also download the Personal Financial Affairs Directory and use it as a guide to write down important information. There is a lot of detailed information, but it serves as a good one-stop resource for your family.
It's a good idea to prepare a will, especially when you're starting your family. A will helps you provide for your children if you die by ensuring that you appoint who cares for them and that they have enough financial resources for their care. Talk to a lawyer to get started.
How Everence can help
We offer a will preparation grant to reimburse Everence members for part of the cost of preparing a will or updating an existing one.
Preparing your family for the unexpected is important, so getting life insurance and even disability insurance can help. Life insurance provides your family with financial support if you die. This is especially important if your family depends on your income. Disability insurance provides tax-free income if an accident or illness prevents you from working and earning the salary your family depends on.
How Everence can help
An Everence representative can get you more information about these types of insurance and help you figure out which is right for you.
If you plan to help your child cover his or her college expenses, you may want to start saving now if you can fit it into your budget.
There are several types of education savings plans with investment options – hooray for compounding interest! Among them are Section 529 Plans (sometimes called College Savings Plans), Coverdell Education Savings Accounts, Uniform Gifts to Minors Act/Uniform Transfers to Minors Act (UGMA/UTMA) Custodial Accounts, and Traditional and Roth IRAs. Each has its pros and cons, and tax implications.
How Everence can help
An Everence representative can help you figure out which options is the best for your situation. You could also talk to your tax and legal advisors about the specific tax and estate planning considerations of the different plans.
