Baby Financials
Five things to consider during your child’s first year.
Apply for a Social Security Number (SSN).
Around the same time information is being requested regarding the baby’s birth cer-tificate, you will be given an application for a Social Security Number. If you wait to apply at a Social Security office, there may be delays.
Add the child to your health benefits immediately.
If you and your spouse both have medical coverage and one of you will place the child on your policy, carefully review both policies to make sure you are getting the best price and coverage that fits your budget
Open a Share Account in your newborn’s name.
You will need a SSN to open a share account for your child. The best time to start saving is now. LGFCU designed the FAT CAT account just for children 12 and under. This account can be individual or joint with a parent. To save for college, contact the LGFCU Financial Wellness Staff to explore your options.
Child-related tax breaks.
A new member of the family can be included on the exemptions on your W-4 form. Regardless of when the child is born during the year, you get credit for the new dependent for the entire year. Be sure to speak with a tax professional for guidance on all tax concerns.
Consider a Will, updating beneficiaries and buying life insurance.
It is a good idea to have plans that provide direction when you’re not here to do it. One way to ensure this is to make a Will. Also, check your retirement accounts and up-date beneficiaries to reflect your intentions. Most new parents buy term life insurance to cover new interests. It is generally the least ex-pensive option and you can modify coverage as family needs change.
