Financial wellness should be on top of your list as a new mom. There are simply many changes that are going to happen with how you handle your money now that you have a child under your wing. Without the correct planning, you put yourself and your child at risk of lack during emergencies and other unpleasant situations.
Believe it or not, there’s more to financial wellness than having emergency funds and sufficient savings in your bank account. There are specific ways to minimize the risks to your family and optimize whatever financial opportunities that already exist for you.
Check Your HSA Contributions
Presuming you have a health savings account (HSA), you want to consider increasing your contribution to ensure that your health emergencies are taken care of. While an HSA is most advantageous during trips to the ER or any case of hospitalization, you may also use it on health-related purchases for you and your baby. Think about how much breast pumps, infant formulas, and doctor’s fees are. Letting your HSA cover those is a great way for you to get whatever treatment and product you need without the added financial strain.
Any amount you weren’t able to use for this year will be carried over to the following year, making it a great savings opportunity for the health and wellness of your family. Just in case you don’t have HSA yet, consider opening one as soon as possible.
Use Employee Benefits
Owning an emergency fund or an HSA can make you overlook the benefits you get from your employers. If your Utah company took out excellent employee insurance, it’s important to understand your coverage and how to use it. Whenever applicable, tap on your benefits to get certain medical treatments done or reimbursed.
Never underestimate the impact that using your benefits will have on your finances. Even the smallest saving here and there can amount to a big sum in the future, and you can expect that raising a child warrants extensive preparation for every kind of emergency.
Take Advantage of Child Tax Breaks
If you weren’t keeping up with new laws implemented in the past years, then you could be hearing about the Tax Cuts and Jobs Act (TCJA) for the first time. Taking advantage of this is crucial for parents because it gives you a great opportunity to save money. The adjustments made to the child tax break and the income limit have made this favorable to more families in America. You can get as much as two thousand dollars of CTC for every child, which puts you in better financial standing as you handle the other financial aspects of parenthood.
Plan Your Will
Nobody wants to think about the worst-case scenarios, but as a parent, it’s your job to make sure that your children are taken care of should anything bad happen to you. This is why you need to plan your will now and set your assets in order. Without one, your children’s future could be compromised. It could take years for the court to settle your affairs, which could mean your children won’t have access to the funds they need for medical treatment and education funds when necessary.
It’s also a good idea to work with an estate planning attorney, as they have the means to set up a trust fund for your children. This guarantees that they’ll be well-taken care of until they reach a certain age.
Start Their College Tuition
It doesn’t feel like a priority yet, considering your child is just learning how to walk. You still have many years before college should be a concern, so placing it at the very bottom of your list won’t hurt, right? In truth, it actually might hurt more than you expect. The earlier you start saving, the less likely your children’s college education will catch you off-guard. You don’t have to set aside huge amounts of money monthly for it while they’re still toddlers.
Just commit to a certain amount and stick to it, slowly enlarging it over the years depending on your needs and capabilities. Once it’s time for them to go to college, you’ll have a fund that can cover their entire university fee, which can then save them from the dreaded student loan.
Small Things Add Up
Knowing how small actions, adjustments, and monetary contributions can add up will significantly improve your financial wellness as a new mom. Be confident that no matter what comes your way, you can protect your child in every way.