Financial Planning For Becoming Parents
Apr 29, 2018 // By:admin // No Comment
In the Virgin Islands, couples who are expecting need a financial plan to cover common expenses. Medical requirements are managed through health insurance, but the parents face the full expense of the leftover twenty percent. As their child grows, the parents must also create a plan for their child’s future. A local financial advisor helps expecting parents plan ahead.
Setting Up a Savings Account
A savings account is beneficial for generating capital for expenses. The financial advisor reviews the income of both parents and determines how much they should save each pay period. A budget is set up for all household expenses, and all extra money is transferred into the savings account. The parents continue to contribute to the savings account based on the financial plan set up by the advisor.
Healthcare Savings Accounts
A healthcare savings account is established at the beginning of the pregnancy. It is used to accumulate savings to cover co-pays, deductibles, and additional expenses related to the child. By contributing to the account, the parents won’t face a financial hardship if the child has challenging healthcare requirements in the future. The parents contribute to the account tax-free, and deductions are acquired from their wages.
Whole Life Insurance Policies
Whole life insurance policies provide a beneficial plan that offers funds for expenses later in life. The contributions continue throughout the child’s life and offer funds for anything they need. Once he or she becomes an adult, the child could borrow from the policy to pay for an automobile or a home.
Reviewing Plans for the Child’s Education
College savings plans are started as early as possible. The parents contribute to the plan until their child becomes college age. The funds pay for tuition, books, and supplies that the child needs. The plans take the stress out of education planning and ensure that the child has adequate funds when they need them.
In the Virgin Islands, couples who are expecting need a financial plan in place to cover their expenses. When raising a child, it is beneficial to have a plan in place for the unexpected. A financial plan for parents offers savings for healthcare requirements and the child’s education in the future. Parents who need more information contact Kirk Chewning now.