Securing Your Little One’s Financial Future: What Jude Offiah Wants Parents To Know
As a new parent, you want to do all that you can to take care of your little one. Working to ensure their financial well-being is key for giving you peace of mind and protecting their future. When you’re exhausted from the early days of having a baby, it can be hard to stay on top of your finances, but it’s vital for your child’s well-being. Financial advisor Jude Offiah is sharing his top financial tips for new parents.
Immediately, you’ll want to add your baby to your medical insurance. You’ll have a month to do this, but don’t put it off – otherwise, you could find yourself responsible for hefty medical bills. You’ll also want to add your child as a beneficiary on your life insurance, according to Jude Offiah. Even if you already have other children, you may want to revise your policy now that you have another child and make your new child an equal beneficiary to his or her siblings.
Jude Offiah also recommends amending your monthly budget. If you haven’t already been budgeting, Jude Offiah says that this is the perfect time to start. Diapers, child care, clothes, wipes, medications, and more can add up. If you can start saving for these expenses before the child is born, even better, according to Jude Offiah.
It’s easy to think that these expenses will fade over time, but according to Jude Offiah, children only tend to get more expensive. Swimming lessons, preschool tuition, music equipment, and more will add up fast. Jude Offiah recommends revisiting your monthly budget every six months to ensure that you’re fully considering your child’s needs, and not falling into a mountain of unexpected debt.
Jude Offiah also recommends opening a college savings account sooner rather than later. The earlier you start your child’s college savings account, the more time there is for the money to grow. Even if you can’t afford to put much away right now, something is always better than nothing. A college savings 529 account grows tax-free, and the money will be there for your child when it’s time for them to begin their journey through higher learning. Each parent can contribute up to $15,000 annually, providing them with a tax break and providing the child with a huge boost when it’s time to go to college.
