How to Financially Prepare for a New Baby

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Nothing compares to the joy that is finding out you're going to be a parent, but after a few weeks of feeling like you're on cloud 9, it's time to buckle down and start preparing. When we say prepare, we're not just talking about designing the baby's room, shopping for clothes and reading baby books - we're also talking about money (babies are expensive!).

Below, take a look at some of the top tips on how to prepare for a new baby:

Start an emergency fund. 
Even if you already have a savings account for emergencies, start another one that is 110% dedicated to your future child. From pre-baby doctor visits to post-baby doctor visits and everything in between, you'll feel a lot more comfortable knowing you have some cash tucked away if you get hit with a bill that was larger than expected.

Review your budget.
It shouldn't come as a shock that raising a child is expensive - The Wall Street Journal reports that the cost of raising a child (until they turn 18) that was born in 2013 is $245,340. That said, it's only obvious that you're going to have to rearrange your budget to account for the added costs you'll have on a weekly, monthly and yearly basis once the baby arrives - you won't just be preparing meals for two anymore or buying clothes for just yourself!

Speak with your employer.
What are your employer's maternity and/or paternity leave policies like? This is extremely important for you to know, as it could certainly impact how much income you take home the year your baby is born - especially if something unexpected comes up and you are required to stay home for a longer period of time.

Find the right doctor.
Medical bills are probably going to be one of your biggest expenses before and after the baby arrives, so take the time to research doctors in your area to ensure that you're finding one within your insurance network. Speaking of insurance, you'll also want to review your policies to see what costs (prenatal care, delivery, etc) are covered, and you'll want to find out how much your premiums will change once you add the baby.

If you're in the process of planning for a new baby, first we'd like to say congratulations and wish you and your family all the best! Then, we'd like to offer a bonus tip:

Find a Financial Planner
In addition to going through your budget with you and discussing strategies to keep your own finances in check, a financial planner can also help you start to plan a secure financial future for your child - did you know that there are certain savings accounts available to help parents save money for their children? Take a 529 Plan that helps you save for their college, for example! There are a ton of opportunities out there, and a financial planner can help you figure out what's best for you and your growing family.

That said, are you looking for a financial planner to help you prepare? Look no further - we at American Investment Planners LLC have you covered!

To learn about the services we offer and how we can help you during this time, please give us a call at (516) 932-5130 or send an email to info@americaninvestmentplanners.com.

How to Teach Your Children About Money at Home

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Understanding money and being smart with money are two of the most important things people should strive to do. However, trying to get on top of this as you get older can be a lot more challenging than if you begin to get a good grasp on things while you're younger. 

Although children will learn about math as they go through the education system (in fact, they'll probably even get a dose of economics at some point too), some state standards don't necessarily translate into class offerings or individual requirements - that said, it's important for parents to take on the role of teaching their children about money at home. Here are a few things that can be done:

Work together on budgeting. 

You'll need to create a budget for yourself in order to keep your family in good financial standings anyway, so why not let your children sit in on the process? After they watch you tackle your budget, it's a great idea to work with them on their own budget, especially if they have an allowance or if they've just started their first part-time job.

Encourage savings.

The sooner children start saving and understanding the importance of saving, the better. The best place to start is by opening up a savings account so that you can stash away money they receive from certain milestones such as graduations or major birthdays - from there, you can further encourage them to save a portion of their allowance or a percentage of their paycheck if they have a job.

Show examples of interest.

Once children are introduced to topics such as percents and fractions, it's time to apply it to money by teaching them about interest. Since it may be confusing just to talk about, you'll want to come up with some examples, such as having your children borrow something of yours and then have them give that same item plus something else back to you.

Be willing to talk about it.

Children are going to have a ton of questions about money - especially as they get older and start to become responsible for things such as buying their own clothes or using their own money to go out to dinner with friends. So, you need to be prepared to answer them, and most importantly, be willing to offer advice and insight before they even approach you.

As financial planning professionals who have been in this field for quite some time, we truly understand the importance of getting your children familiar with money and the best financial practices as soon as they are able to understand them. That's why at American Investment Planners LLC, we help the entire family with their financial planning efforts.

To learn more about our services and how we can help your family next, please give us a call at (516) 932-5130 or email info@americaninvestmentplanners.com.

Above information courtesy of Emerald Connect, LLC.

How To Prepare Financially For The Birth Of A New Child

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Whether you're a first time parent or a grandparent to-be, there's nothing like planning for a baby's birth - you get to pick out a name, clothes, furniture, and of course, the stuffed animal they'll carry around with them for the next several years of their life. But aside from all of the fun stuff that comes with preparing for your baby's birthday, there are also some pretty serious topics that need to be addressed, starting with money - according to an article from MarketWatch, recent findings suggest that the average cost of raising a child is over $245,000, and that's without college tuition or considering a child's needs after age 18.

Knowing that a child can be pretty costly, we are providing a few tips to help you prepare financially:

Find The Right Health Insurance: The cost of being pregnant alone is something that mustn't be overlooked - medical bills that result from multiple doctor appointments and the birth of your child itself will certainly add up before or right after your baby arrives. With that said, you need to do some serious thinking when it comes to the health insurance you currently have, and if it isn't going to help much with the costs, consider looking into any other plans you have available to you.

Talk To Your Employer: Even if your company offers maternity/paternity leave, you have to remember that this won't last forever, and there may be circumstances where you need some additional time off. Unless you have additional sick or personal days that you can use to spend time with your new baby, it would be in your best interest for you and your spouse to talk to your employers to learn if there are any other parental leave policies in place.

Re-evaluate Your Budget: The budget that you and your spouse once followed is likely going to have to change, but the time to figure that out is not after the baby is born - you need to start implementing new spending and saving habits well before then. With baby food and baby supplies about to be on your shopping list, you may find that you need to cut back in other areas or add more to your savings accounts while you still can.

Start Thinking About Opening Accounts: To ensure that your child has the funds they need as they get older (for college, for instance), you may want to consider opening a savings account or two in their name right after they're born. Some possible accounts include a 529 plan, a UGMA or a UTMA. Saving from a young age is extremely important, and since your baby won't be able to do so on their own just yet, it's helpful for you to give them a head start by opening an account like these as soon as you can.

Welcoming a new baby is certain to be one of the most exciting times in a parent's life, but it can also be overwhelming if the proper planning isn't done. But we want to help! Here at American Investment Planners LLC, we help families plan for all of life's greatest events and milestones, and we would love to be a part of your pre-baby planning experience.

For more information about our financial planning services, please visit us on our website or call (516) 932-5130 today.