Bringing a new baby home involves both one-time and ongoing costs. Preparing early can reduce stress.

• Adjust your budget: Before the baby arrives, review your current spending. Factor in new expenses like diapers, formula (if applicable), baby gear, and childcare.
• Build an emergency fund: Aim for 3-6 months of living expenses in an easily accessible savings account. This acts as a buffer for unexpected medical bills or changes in income during parental leave.
• Factor in lost income: If one parent plans to take extended time off work, budget for that period of reduced income.
• Initial purchases: Big ticket items like a crib or stroller can be costly. Consider shopping second-hand or creating a baby registry to help offset these initial expenses. If a large, one-time purchase is necessary and you've exhausted savings, consider a personal loan with your bank, though it's generally best to save beforehand.

While college savings are often top of mind, consider broader financial security for your child's future.

• Custodial accounts (UGMA/UTMA): These accounts allow you to transfer assets to your child. They are flexible – funds can be used for any purpose benefiting the child (e.g., car, first apartment, startup costs) – but the assets legally become theirs at the age of majority.
• Investment accounts: For long-term growth, discussing investment options with a financial advisor at your bank can help set up a diversified portfolio.
• Consider life insurance: A life insurance policy on parents ensures financial protection for the child if something unforeseen happens. Your bank's insurance partners can help you explore options.
• Teach financial literacy: As your child grows up, involve them in age-appropriate money discussions. Consider opening a youth savings account for them to learn about saving.

Smart saving for your kids involves a clear plan and using the right tools:

• Create a savings plan: Define what you're saving for, how much, and when the funds will be used.
• Open dedicated accounts: Consider a separate savings account for each child to track progress. Look for low fees and good interest rates.
• Make savings automatic: Set up automatic transfers from your checking account to your child's savings. This "set-it-and-forget-it" method is highly effective.
• Boost savings with "extra" funds: Deposit proceeds from selling outgrown items, gift money for holidays/birthdays, spare change from a piggy bank, or financial windfalls (like tax refunds) directly into their savings.
• Utilize education-specific plans:
• 529 college savings plan: Offers tax-free growth and withdrawals for qualified education expenses. A powerful tool for college.
• Roth IRA: While for retirement, contributions can be withdrawn tax-free and penalty-free for qualified education expenses or a first-time home purchase.
• Include them in finances early: Involve your children in learning about saving and managing money. This prepares them to use the funds wisely in the future.

• Want more tips? Read "How to Save Money for Children" on our blog.