Small Child, Big Decisions: What to Plan Beyond the Little Things
Here are some of the most significant matters, such as child care, education and life insurance, that you should prepare for when getting ready for your little one.
BABY’S FIRST YEAR
Plan for some of these common first-year expenses as you budget for your newborn. As you take on these costs, a great way to help financially protect your family is by purchasing life insurance.
Potential cost of baby’s first year for a family with $200,000 annual income: $51,9851
$26,870 Child care
$6,368 Miscellaneous (diapers, clothes, toys, stroller, etc.)
$5,783 College savings
$1,490 Health insurance
$762 Life insurance for two parents
$607 Healthcare (out-of-pocket costs)
CHILD CARE OPTIONS
Budget for and confirm your plans for who will be your child’s daytime caregiver from infancy through pre-K.
Average cost of full-time care per month2
Daycare center: $972
*Income may drop if parent was previously employed
FUNDING HIGHER EDUCATION
While college may be many years away, it’s never too early to start saving.
Average cost of yearly college tuition3:
Public two-year (in-district): $3,440
Public four-year (in-state): $9,410
Public four-year (out-of-state): $23,890
Private four-year: $32,410
You’d do anything to help protect your loved ones, but do you know how to best financially protect your newborn?
70 percent of Americans said that “help[ing] to provide for my children” was one of the top three reasons they purchased life insurance.4 Now is the perfect time to look into getting life insurance or review your current coverage to ensure you have enough to help financially protect the dreams you have for your new addition.
1 Study: Would-Be Parents Unprepared for Potential Cost of Raising a Baby, NerdWallet, 2017.
2 Childcare Options: Pros, Cons, and Costs, BabyCenter, 2018.
3 College Costs: FAQs, CollegeBoard, 2017.
4 2016 Amica Life Financial Peace of Mind Survey, 2016.
If you’re expecting an addition to your family, you may need additional life insurance coverage. Not sure how much you need? Use our needs calculator to easily find out if you have enough life insurance.
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