Babies have no idea how much paperwork goes into bringing them home. Their little brains are too busy growing to care about prior authorizations, referrals, and deductibles — let alone Social Security cards, life insurance, and 529 plans.
While their new humans roll around like little potatoes, new parents need to burn the midnight oil doing things such as:
- Better anticipating the out-of-pocket cost for your hospital stay by talking to a live human at your insurance company.
- Understanding the family leave policy at your or your partner’s job, including the bottom line: How much will you be paid?
- Creating spending plans incorporating your new arrival.
- Evaluating insurance products and researching the right doctors within the insurance network you choose.
- Strengthening your emergency fund.
- Requesting a Social Security card.
- Adjusting the beneficiaries on your bank and brokerage accounts.
- Updating your will.
- Establishing a 529 college savings plan. A $5,000 opening balance + $100/month = $68,000 in 18 years. You can punch in your own numbers here.
I associate reactive financial decisions with late fees, overdrafts, and higher interest rates. Following the steps above will help you be proactive rather than reactive. Another way to avoid being reactive is to bring in an extra set of eyes to give your household books “the once-over.” At Judith Heft & Associates we help you establish self-sufficient systems of organization and will check in with you about all of your vital documents. To learn more, contact us.