Preparing Your Finances When You’re Expecting

Preparing Your Finances When You’re Expecting
Walter Wisniewski, CFP®

Walter Wisniewski, CFP®

Having a baby will change your life in significant ways, and this includes financially. Not only will you have increased costs for things like diapers and childcare, but you’ll also have new financial planning considerations, too.

In this five-part series, we’ll walk through these considerations and provide a roadmap to follow as you financially prepare to add a new bundle of joy to your family.

Today, we’ll begin by discussing one of the cornerstones of financial planning: your estate documents.


While everyone should consider what will happen to their financial assets when they’re gone, it’s particularly important for parents of children under the age of 18. Although it’s a conversation many people prefer to avoid, it’s crucial to consider who you want to raise your children if something happens to you or your partner, as well as who will make financial and health care decisions on your behalf if you are incapacitated in some way. To that end, your estate planning should include a will, an advance directive or living will, medical power of attorney and financial power of attorney.



A will is important because it indicates how your assets should be distributed, and to whom, after your passing. If you had a will in place before you added children to your family, chances are it was a so-called “sweetheart will” that left everything to your spouse or partner. When you have a minor child, however, you may want to consider a minor’s trust. This type of trust holds assets on your child’s behalf and ensures they will be used for his or her benefit. It also allows you to name a guardian. This will be particularly important in the event of a “common disaster,” which is the legal term used when both parents die unexpectedly at the same time.


This important medical document provides instructions for doctors and nurses about the measures you want taken in end-of-life scenarios. For instance, you may note whether you wish to be placed on life support, or whether you would want artificial nutrition. Not only does an advance directive or living will ensure your wishes are met, but these documents also relieve your loved ones of the burden of medical decision-making.


A medical power of attorney, also called a healthcare power of attorney, is a legal instrument that specifies someone to make healthcare decisions on your behalf if you become unable to do so on your own. Most often, a spouse is named in this document, but it could also be another trusted person in your life with whom you have previously discussed your wishes. It’s important to note that you do not have to be terminally ill for the medical power of attorney to come into effect; it will also serve you in situations of accidental injury or temporary medical impairment.


As you might have guessed, a financial power of attorney is similar to a medical power of attorney, except that it names a person to manage financial affairs on your behalf. This document makes it possible for a trusted person to file taxes on your behalf, manage your investments and pay off debts.


If you’re ready to begin drafting the above legal documents, it is best to use the services of a board-certified estate planning attorney. Establishing a relationship with an attorney in your area is valuable both in executing these documents and in the event they are used at some point in time.

Estate planning is an important step for all parents to take. It helps to ensure your children are raised in the way you would hope even if you aren’t there to raise them yourself, and it also provides you with financial peace of mind as your family grows and thrives.

Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. Information provided in this blog is for educational purposes only and is not intended to be, and you should not consider anything to be, investment, accounting, tax or legal advice. If you would like investment, accounting, tax or legal advice, you should consult with own financial advisors, accountants, or attorneys regarding your individual circumstances as needed. No advice may be rendered by Arcadia unless a client service agreement is in place. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Begin Your Discovery

Our initial discovery meeting is complimentary and  gives us the opportunity to provide information and resources about who we are and what we do, so that you can make an informed decision about who you choose to work with on the future of your wealth.

Let's Stay Connected

Follow us on social to get the latest market insights, retirement planning tips, and financial planning articles.