New Kids on the Block Pt.3

BCR Wealth Strategies |

If you haven’t read the first two installment of this series, you can find them here: New Kids On the Block, Part INew Kids On the Block, Part II

You are out of the hospital. Feed, Diaper, Sleep, repeat. Feed, Diaper, Sleep, repeat. Not always in that order, but hopefully you find a routine. After a few weeks you start to exit survival mode, if you are like me, coffee = life at this stage. Things start to settle down and you soak in those special moments, and ask yourself, what is my child going to grow up to be? What can I do financially to ensure his or her success? Let’s talk about it.

Replenish your emergency fund

Emergency Fund should generally be 3-6 months of non-discretionary expenses. Think mortgage payment, utilities, food, the stuff you must pay for no matter what.

Update your will

You will want to update your will. Big decision time. Who is going to care for your child in the event something happens to you and your spouse?

Heath Insurance

You can make changes for qualifying events, having a baby is one of them! Time to sit down and analyze the terms I mentioned in my previous blog. FOUND HERE. You will want to decide which spouse has the better plan to add your child to. Does it make sense for spouse and child to be added and have a family plan?

Life Insurance

There are tons of ways this can be handled. The textbooks will tell you 10-16x gross income. You want to replace your income for your spouse, but what about the cost of daycare or a nanny? Do you want to pay for college or rely on student loans? Pay off the house? Or expect the spouse to downsize? In this case the more coverage you have, the more options it gives your spouse. Life Insurance is exponentially cheaper at a younger age and premiums can range depending on several factors. I.e., Health history, family health history, tobacco use, extreme hobbies, etc.


Oh boy! Plenty to cover on this topic. Perhaps New Kids on the Block will hit the road on a reunion tour, and we can take a deep dive. Just know that, for now, there are numerous ways to save for the child’s future.

Custodial accounts, Tax Advantage Plans, Financial Aid, Prepaid Tuition. There are pros and cons to each of these and I think it deserves its own blog….