Welcoming your child into the world is one of life’s most transformative moments. It also brings a list of responsibilities that can easily feel overwhelming. Here are some actions to take as you have time — it doesn’t all need to be done at once. But you’ll feel better knowing you’ve taken action.
Tasks for First 30 Days
These are essential and time-sensitive tasks. Missing the deadlines may have financial or legal consequences, so complete these as soon as possible.
• Add your child to your health insurance: You typically only have 30 days from the date of birth to enroll your child in your healthcare plan.
• Apply for a Social Security number: You’ll need this number to claim your child as a dependent on your taxes, open financial accounts in their name, and more. Most hospitals offer this at the time of birth certificate filing.
• Order your child’s birth certificate: Request multiple originals — you’ll use these for passports, insurance, school enrollment, and more. There’s no limit on how many you can order.
• Update your estate plan: As a new parent, you’ll want to take the following actions: 1) Add custodial provisions in your will — it may also be time for you to upgrade to a trust-based estate plan. 2) Add your child or your trust as a contingent beneficiary on retirement accounts (401(k)s, IRAs, Roth IRAs, etc.). 3) Update your life insurance beneficiaries.
Tasks for First Year
These tasks are important for protecting your child’s future and getting your household financially prepared for the changes ahead.
• Review and adjust your financial plan: 1) Revisit your budget to account for new expenses: diapers, childcare, medical costs, etc. 2) Update your tax withholdings to claim your new dependent. 3) Reassess your life insurance needs to ensure adequate coverage for your growing family. 4) Re-evaluate your employer benefits (e.g., dependent care FSA, HSA contributions, or child life insurance).
• Start a 529 College Savings Plan:This tax-advantaged account can grow with your child for their expected education costs. 529 plans grow similar to a Roth IRA, as the gains can be realized tax-free for tuition and education expenses. In some states, you can receive a state income tax deduction for your contributions. Share the contribution link with family and friends for birthdays and holidays — people love gifting meaningfully.
• Freeze your child’s credit: Unfortunately, identity theft can start early. Freezing your child’s credit with Equifax, Experian, and TransUnion prevents fraudsters from using your newborn’s Social Security number to apply for credit lines.
• Order your child’s passport and passport card: This is essential if you plan to travel internationally. The card also serves as a handy form of identification.
Non-Urgent Tasks
Although these next points aren’t high priority, they’re valuable ways to provide peace of mind for your family and long-term advantages for your child.
• Register baby gear for recall notifications: This is especially important for items like cribs, strollers, car seats, and bassinets. Hold onto instruction manuals and proofs of registration.
• Create an email address for your child: Besides being required for things like Global Entry, it’s a way to send them photos, stories, and letters over the years.
• Carry copies of key documents while traveling: Birth certificate and immunization records may be required for certain flights, day care enrollment, or medical visits.
Katie Stephenson, JD, CFP, is a Private Wealth Manager and Partner with Creative Planning. Creative Planning is one of the nation’s largest registered investment advisory firms providing comprehensive wealth management services to ensure all elements of a client’s financial life are working together. For more information or to request a free, no-obligation consultation, visit CreativePlanning.com.
