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Financial and Legal Checklist for New Parents

This checklist is for informational purposes only and does not constitute legal, tax, or financial advice. Please consult with an attorney, accountant, financial advisor, or other professional for guidance specific to your situation.

1. Build Your Emergency Fund

Calculate Your Target
Add up one month of essential expenses (housing, food, utilities, insurance, childcare). Multiply by 6 months for a dual-income household or 12 months for a single-income household.
Choose the Right Account
Keep funds in a high-yield savings account that’s easily accessible but separate from daily checking.
Set Up Automatic Savings
Start with small, regular transfers even if you can’t save the full amount right away.

2. Plan for Education Costs

Research Education Savings Options
Look into different education savings accounts and their features.
Set Up Regular Contributions
Consider automatic monthly transfers and invite family members to contribute for birthdays/holidays.
Plan for Pre-College Costs
Consider whether private school or other educational expenses might come before college.

3. Protect Your Family’s Lifestyle

Evaluate Life Insurance Options
Compare different types of life insurance policies (term, whole life, etc.) and coverage amounts based on your family’s long-term needs and goals.
Review Workplace Benefits
Maximize employer-provided insurance, dependent care FSAs, and parental leave benefits.

4. Create Essential Legal Documents

Draft a Will
Work with an attorney to create a will that covers both asset distribution and guardianship appointments.
Document Guardianship Plans
Choose temporary guardians nearby and long-term guardians who align with your values, and create a detailed letter outlining your parenting philosophy, routines, and wishes for your child’s upbringing.
Update Account Beneficiaries
Review all financial accounts (retirement, insurance, bank accounts) and set up beneficiary designations (including transfer/payable on death) to ensure assets transfer directly to your chosen beneficiaries while avoiding probate.

5. Set Up Your Child’s Financial Foundation

Consider Creating a Trust
A trust can help protect your children’s inheritance, provide privacy, avoid probate, and give you control over how and when assets are distributed.
Plan Asset Distribution
Set age-based milestones for inheritance (e.g., partial access at 25, full access at 30).
Add Flexibility
Include provisions for education, health, and other important needs before full distribution.

6. Organize and Protect Documents

Organize and Store Documents
Create a master file of all important legal documents and account information, and keep it in a secure location like a fireproof safe or safe deposit box.
Use a Password Manager
Consider using a password management app like Apple Passwords, 1Password, or Bitwarden to securely store and manage your digital credentials.
Create Digital Backups
Scan important documents and store securely in the cloud.

7. Build Your Professional Team

Find a Financial Advisor
Choose an advisor you trust and feel comfortable working with to help guide your family’s financial decisions.
Consult an Estate Attorney
Work with a lawyer experienced in family estate planning to create and maintain your legal documents.
Meet with a Tax Professional
Connect with a CPA who can help optimize tax benefits for education savings and childcare expenses.
Schedule Regular Check-ins
Meet with your advisory team whenever you experience major life changes (new job, move to a new state, additional children) or at least every few years to ensure your plan stays current.