3 Essential Financial Planning Tips for New Parents of Children with Special Needs
Expecting a child can leave parents with a wide range of emotions. Of course, you are excited to meet your new family member, but you also may be worried about providing the care your little one will need. This anxiety can be even more intense if your child will be born with special needs, but proper planning can help soothe some of those fears. Financial planning can be helpful for new and expectant parents, and you can use these savvy tips to get started.
Having Insurance Can Ensure a Stable Financial Future
As a new mom, you likely understand the value of health insurance. However, did you know that there are additional insurance options that can help protect your little one now and in the future? For instance, if you want an economical and practical way to ensure that your family will not be adversely affected by your death, you can consider buying burial insurance. The purpose of burial insurance is to offset funeral costs but this sort of coverage can also help families cover leftover medical bills and other financial obligations. Before you commit to a burial insurance plan, do your homework to see what funerals cost in your area. This can vary by state, but the minimum families can expect to budget for funeral and viewing services is $7,360. By adding burial insurance for each parent, you can make sure that your family will not be burdened by a sudden expense during an already stressful time. Thinking about your own death can be frightening, but estate planning is extremely important for new parents. Planning for the unexpected is one of the most responsible steps you can take to protect your new baby, and coupling a burial insurance policy with life insurance will provide your family with a financial safety net should the unthinkable come to pass.
Saving Can Take the Stress Out of Family Emergencies
Creating a plan that will protect your child’s access to care in the event of your death is a vital step for new parents, especially when your child is born with a disability. If you want to create a solid financial strategy for your new family, however, you also need to plan for other unexpected events. For example, if you own a home you should think about how an unexpected repair would impact your finances. On average, homeowners need $7,370 for emergency repairs, and there are a few financial options that can help during these stressful times of need. To avoid that immense stress and avoid having to scramble for a solution when you’re also caring for a child, you should create an emergency home repair fund. Having at least 1% of your home’s value saved in this account is a good goal but you can always add more to provide some added peace of mind. In addition to saving for home repairs, new parents should also save for other emergencies by tucking away three to six months’ worth of expenses into a separate account.
Planning for Care Can Create Peace of Mind for Parents
All of the financial steps above are applicable to any new family. When your child is born with special needs, you may need to take some extra steps to ensure that your family’s finances will not be overwhelmed. While having adequate health insurance can help out with any additional care expenses, you may be able to access other financial benefits for your little one’s care and well-being. If you plan on using Medicaid or Social Security Insurance, however, you may need to exercise more caution around estate planning. Another financial task that new parents of children with special needs should plan for is making home modifications. These modifications may vary depending on your child’s individual needs, but budgeting for any necessary updates or repairs can ensure a safe, comfortable home for your new family.
Creating a roadmap for a stable financial future should be a must for all new parents. For parents of children with disabilities, this task can be even more important, but addressing a few crucial areas can make creating a solid financial plan so much easier.
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Thank you,
Glenda, Charlie and David Cates
