Financial Planning Tips for New and Expectant Parents

March 23, 2018

The arrival of a new baby can be an exciting time for any family, but there are some steps you should take to be a responsible parent. While you can make relationships with medical professionals to arrange proper care of your son or daughter, you shouldn’t let your financial health suffer. By doing some careful planning today, you’ll be better prepared for many situations that could pop up in the future. You can always turn to your local Los Angeles tax preparation services to get a larger refund by adding dependents to your return, but here are a few other things you should do to plan financially.

Prepare for Emergencies

While you hope nothing bad ever happens, it’s your duty as a parent to prepare for the worst by investing in life insurance, disability coverage and creating an emergency fund. You might already have a rainy day account for you and your spouse, but children can quickly eat into those reserves with unexpected illnesses and injuries.

Use Tax Breaks to Your Advantage

Claiming your child as a dependent is a good way to free up extra money, but your tax advisors will be able to help you realize additional savings by taking advantage of policies. A savvy accountant can find all sorts of deductions to reduce your liability to the government:

Child care credits
Contributions to flexible spending accounts
Prepaid college tuition programs

Plan for the Future

These are just a few strategies you should use as an expectant parent, but let the professionals at Wallace & Associates take a look at your finances to see if you’re doing everything within your power to prepare. We have experience working as Encino tax consultants for people from all walks of life, and we’re ready to help you get the most out of every dollar. You can contact us online for an appointment, or call our office today at 818-995-2928 if you have any questions.