Michael Joyce recently shared with Rachel DePompa of NBC12 his suggestions for financial planning when starting a family.
Starting and raising a family is more expensive than ever these days. So, while may be fun to figure out a nursery and buy new baby gadgets — there are some financial steps you should really take when you learn you’re expecting and right after the baby arrives.
Budget for Baby
Michael says to begin with a financial plan. He says, “Start budgeting early for all the things you will likely buy once baby arrives.”
Update Beneficiary Designations
In addition, Michael says to “Update your beneficiaries on all your accounts and your will in case something ever happens to you.”
Start Saving Immediately for College
And finally, he suggests starting a college fund as soon as your child is born. “We started saving for my sons when they were 30 days old. I mean, as soon as we got a social security number for them we start saving at least a little bit every month,” said Joyce.
Experts say if you set aside $25 a month– to start. That will add up over the 18 years. And if you have a 529 account, the money you add will accrue interest.
Financial Implications Are Long-Lasting
Michael says, “Don’t just think about the baby clothes and diapers when you start to plan for a family. Consider the financial implications that will last 18 years or longer.”
For more information about starting a 529 college savings account for your child, contact Virginia529 or PA529. And, of course, you can reach out to your financial strategist any time to discuss education planning.