Financial Planning for Baby's Future

Financial Planning for Baby's Future

Financial planning for a new baby goes beyond saving to pay for the hospital bill, which can cost as much as $5,000 for a healthy child. The first priority? "Get all credit card debt cleaned up ASAP," says UAB economics professor Bradley Wilson, Ph.D. Planning further ahead, he advises the parent who makes the most money to get term life insurance, to help care for the family if that parent were to pass away.

To plan for a child's college education, invest in a growth mutual fund; and if private college instead of a public university is the goal, adjust the investment to reflect the cost difference between the two.

Contact Jennifer Park, Media Relations, 205-934-3888 or [email protected].

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