The Wall Street Journal. Financial Guidebook for New Parents

by Stacey L. Bradford

A practical approach to affording your kids from cradle to college.

Bringing home your bouncing baby boy or girl should be an exciting time of celebration–not cause for worry about how you’re going to pay for feeding, clothing, and caring for your new bundle of expenses. The average family will spend between $11,000 and $16,000 during a new baby’s first year, and more than $200,000 before a kid’s eighteenth birthday. Unfortunately, a second child only doubles your costs, with little economy of scale for each additional baby.

Before you start using these statistics as birth control, take a deep breath and know that you can have a family and make a comfortable future for your children while saving for your own important goals. The Wall Street Journal Financial Guidebook for New Parents shows you the way, with information on how

• Safeguard your child’s well-being with wills, trusts, and life insurance
• Best weigh your child-care options and decide whether to go back to work
• Save on taxes with child-friendly tax credits and deductions plus tax-advantaged benefits at work
• Manage your family’s health-care costs
• Save for long-term costs by setting up a college fund
• Spend smart and save money at every stage of your child’s development
• Continue to contribute to your own retirement savings

From maternity (and paternity) leave to flexible spending accounts to 529 college plans, The Wall Street Journal Financial Guidebook for New Parents provides all the information you need to meet your child’s expenses while also protecting your family’s financial security.

Genres: Nonfiction, Parenting

208 pages, Paperback

First published June 2, 2009

Reviews

[Rosy · Rating 3 out of 5]

The Wall Street Journal Financial Guidebook for New Parents is a very quick, simple read covering all the basics in terms of financial preparation for the expectant family. At times, it's a little too basic, and if you are already financially savvy, live within your means, and know how to budget, this is likely not going to help you too much.

However, I do think that it should be required reading for all new parents-to-be, right along with whichever pregnancy book you pick up, simply because I know that many people don't have their financial lives in order. Even if your finances are in order, there are sections in the book that I didn't think about (read: doesn't apply to those with no dependents) such as wills, trusts, and college savings. It completely didn't cross my mind that I should get life insurance, though it makes perfect sense.

What I particularly liked about this book is the section covering staying at home and going back to work after parental leave. It was honest and non-judgmental, and I think that many people who are considering one or the other don't take into account all the points that this book makes regarding this difficult decision.

[Jimmy Dexter · Rating 4 out of 5]

Read this when we had our first child and it's really helpful with lots of great points about getting your finances in order when you have kids!

[Kara · Rating 3 out of 5]

I was most interested in college savings plans, wills, trusts, and life insurance. The book also covers maternity & paternity leave, deciding where to live, tax benefits, health insurance, and child care.

I learned enough to feel more confident making decisions about and purchasing/implementing life insurance and wills, but I still feel pretty uncertain about college savings plans and trusts (although I did learn a lot more about why we should have a trust in the chapter titled "Trusts: They aren't just for the wealthy"). Overall, it's a great starting point for these important decisions at this time in our life.

[Steve · Rating 3 out of 5]

This a a good high-level guide for new parents. There were many chapters in which I would have like to see more details or references. Much of the information was so high-level that it was common-sense.

[Kate · Rating 3 out of 5]

Easy to read, clear, but I feel like it only scratches the surface. A good book to read to give you an idea of the types of financial decisions you'll be making as a parent, what to think and ask about, and where to gain more information. It's a good start!

[Carol · Rating 3 out of 5]

Lots of basic info that I already knew but I did find the chapters on setting up wills and trusts to be very informative and will be utilizing that information soon.

[Jessica Lange · Rating 3 out of 5]

A lot of the information and tips in this book were just a review for us, but we did get some good information on spousal IRAs and insurance. A must read for those not already finacially savvy.

[Andrew · Rating 4 out of 5]

Not really a four-star book, but better than a three-star book. Some great ideas here, and a helpful list of things to consider.

[Kristin · Rating 4 out of 5]

Very useful, although we also ended up getting some of the same advice from other sources.

[Eric · Rating 3 out of 5]

This book has some useful financial advice for new parents. Though I am not a parent myself, I found the book helpful in thinking about the financial aspects of starting a family.

[Caroline Horton · Rating 5 out of 5]

Helpful books for new parents.

Would recommend this books to anyone who is also questioning how to juggle new financial responsibilities like childcare while also planning for retirement.