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While parenthood can't be fully planned for, preparing for the financial impact can help ease some of the stress. Here are the essential financial questions to ask as you prepare for your first child.
The Simple Dollar highlights nine important financial factors to consider before officially becoming a parent. For instance:
How will we handle child care?
If both of you plan to return to work, unless your schedules are exceptionally unique, there will be several times each week when you'll need someone to look after your baby. Who will be responsible for child care? It's important to find that solution as soon as possible.
What expenses will we cut to manage the added costs?
Whether you like it or not, some sacrifices will need to be made to make the finances work. While your tax burden will decrease slightly with your new dependent, it won't be nearly enough to cover all the expenses you'll face.
Do we have a valid will, durable power of attorney, and/or health care proxy in place?
These documents are crucial for everyone, but they become even more essential once you have a child. They will ensure that your wishes are followed should you become unable to care for your child. Without them, the state will decide what happens, and that decision may not align with what you want.
Each question also comes with recommendations for specific topics to discuss. Be sure to read the full article for more details.
Image courtesy of Daisha Jackson.
