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How To Include A Baby In Your Financial Plans
Posted By Jim On 09/11/2008 @ 7:21 am In Family | 8 Comments
This is a post by Connie Brooks, a new mommy in Louisville, KY.
Having a baby is a huge life event, and your entire financial outlook will change because of it. As if the initial cost of having a baby  weren’t enough, you also have to ensure you’ve included your new addition to your overall financial plan. Here’s a quick guide on how to include your new baby in your long term financial plans.
Let’s start with your baby’s paperwork:
Once you have your baby’s paperwork in place, then you are ready to begin adding them onto your financial accounts. It will take up to a month for your baby’s social security card to arrive in the mail. Wait until you have it to do the things below because you will need their Social Security number for each of your next steps.
The next step from here is to decide how you want to teach your child about money as they grow up. In our case I opened a savings account , a Coverdell ESA account, and a general investment account for our daughter. All accounts are jointly in my name with my husband as the beneficiary if anything happens.
I chose to open these accounts for my daughter because I want to teach her that saving and investing are mandatory, not optional. I want her to grow up using them, and understanding them. My husband and I did not learn how to manage our money until relatively late in life. I do not want things to be that way for my daughter.
When she is older, I am going to jointly open a couple of credit cards with her and teach her how to use them. I do not want her to go off to college like I did, sign up for a credit card just to get a free t-shirt, and proceed to ruin her credit. I want her to know that her available credit is there to protect her in an emergency and not something you use just to order a pizza.
Now, I’m not even going to tell you that what I plan to do with my daughter is the only way, or even the correct way to teach a child about money. It’s just what I believe is best right now. If I change my mind as she grows, we will alter our plan.
Some other things you will want to consider:
You have a unique opportunity with your child – if they grow up learning a thing to be true, then they are likely to continue doing it when they get out on their own.
The most important thing to do right now is to sit down and talk with your spouse about how you want to raise your child. Discuss which types of accounts you will need to do that, and then work together to make it happen. There is no “catch all” strategy for how to plan your future to include your child. But you can be very sure of one thing: Once you have your baby your life will never be the same again, and neither will your money!
How about you? How do you teach your children about money? What did you do to work them into your long term plans?
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 initial cost of having a baby: http://www.bargaineering.com/articles/babies-are-expensive-total-cost-of-having-a-baby.html
 visit the CD’s National Center for Health Statistics: http://www.cdc.gov/nchs/howto/w2w/w2welcom.htm
 click here for more information: http://www.ssa.gov/pubs/10023.html
 savings account: http://www.bargaineering.com/articles/top-5-online-banks-savings-or-checking-accounts.html
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Thank you for reading!