Big life events are very exciting, but they also require some careful planning to make sure your bases are covered. The financial considerations of starting your life with someone new, buying a home or welcoming a new baby into your life can be a little overwhelming.
That’s where we can help point you in the right direction. We’ve put together the quick guides below with some key financial moves you can make as you enter these life stages. We hope this information helps you take your next steps with confidence.
Which big life events are you planning for now or have you recently experienced?
4 Financial Moves to Make When You’re Getting Married
Starting a new life with your partner is exciting, but don’t forget your finances amid the celebration. Consider these four financial moves when it’s time to walk down the aisle.
1. Develop a joint budget
Whether or not you combine bank accounts is up to you — but developing a joint budget
will help you determine how each part of your life together will be funded. From rent to groceries to emergency savings, spend time comparing notes on your expectations and determine what you can spend on each, then save money in a place you can both access and reference regularly. If you use budgeting software, look into your options for joint accounts or multiple log-ins.
2. Purchase life insurance
Whenever you have a big life event, it’s a good idea to consider the life insurance implications. So whether you already have some life insurance — through your school district or otherwise — or have never had a policy, take time to sit down with your new spouse and discuss what either of you would need if the other were no longer around.
Consider the benefit amount either of you might need, remember to name one another as beneficiaries and don’t forget to look into member-exclusive life insurance options
available to NEA members. It’s likely not the first thing you’re excited to do as a married couple, but squaring this away might bring you some added peace of mind.
3. Lay out your financial goals
You’ve taken one big step together — what’s next? Maybe it’s a new home, a honeymoon or vacation, going back to school or retirement plans. Whatever your dream is, you’ll need to set some financial goals to get there. Consider what you’ll need to save and earn, set your timeline and figure out how each goal fits into your overall joint budget.
You can use the NEA Retirement Income Calculator
to determine what you might need to save to have the retirement you want. And don’t forget that members like you have access to tools to help you get there sooner, like the NEA Smart Money Account
4. Adjust your tax strategy
You likely know that marriage comes with some potential changes to your tax filing status. Take a close look at what this means for your finances — you generally have the option to file together or separately, but the pros and cons should be considered. For example, filing jointly may eliminate a credit for any student loans, but depending on your situation, this choice may save you money overall. A tax specialist may be able to point you in the best direction for your unique situation.
Marriage isn’t the only time you should reassess your financial needs — watch this video to learn more about protecting what matters most
4 Financial Moves to Make When You’re Buying a Home
Buying a house is a big financial move. Here are a few things to consider when you’ve chosen a new place.
1. Set aside money for repairs and renovations
Whether or not your home was pristine during your inspection, you’ll eventually need to make repairs of some kind. And there’s a good chance you’ll want to paint a few walls or install some new carpet. Adjust your budget
or financial goals accordingly — and don’t forget that members like you have access to the NEA Smart Money Account
, which can help you earn more interest on your savings.
2. Find the right homeowners insurance
You’ll need homeowners insurance, of course — but the options can be overwhelming. Consider our affordable member-exclusive option
from California Casualty. Make sure to ask about possible premium discounts
for things like having a security system, bundling with other policies or even factors like credit score and marriage status.
3. Reassess your life insurance needs
Your new home is a big asset, and your mortgage is a significant financial responsibility. Take time to consider how this may impact your life insurance beneficiaries and how your coverage amounts may need to change to help protect them from financial burden when you die. Unsure if you have enough life insurance? Take a look at NEA’s member-exclusive options
4. Review your budget and retirement plan
This exciting new purchase will bring with it some new financial needs. Add necessary items like utilities, trash and monthly upkeep to your budget
, and adjust as you settle in. Consider how these financial needs may impact your retirement plans
and make changes to your financial goals as needed.
The purchase of a new home isn’t the only time you should reassess your financial needs — watch this video to learn more about protecting what matters most
4 Financial Moves to Make When You’re Having a Baby
Congratulations on your new addition! As you adjust to new routines, don’t forget to consider these financial moves.
1. Add your child to your health insurance plan
Your child was covered by your insurance plan immediately following their birth, but don’t forget to adjust your health insurance plan to officially include them — depending on your plan, this will usually need to be done within a month or two of their birth. The rules vary slightly by plan and in circumstances such as adoption, so review your policy for specifics.
2. Adjust your monthly budget, and consider college savings
Take a look at your monthly budget
and determine what will need to change — factor in diapers, new grocery needs, childcare and more. While you’re at it, think about whether you’d like to start a college savings account for your child. Starting this early can save you money in the long run, so now’s a great time to begin contributing.
3. Reassess your life and disability insurance needs
Whether or not you had life or disability insurance before, there’s no better time to consider it than with a new baby. These insurance protections can help provide for your growing family in case of your untimely death or help you cover their expenses if you’re unable to work for an extended period of time. As an NEA member, you have access to exclusive insurance rates — so look into your life insurance options
, name your spouse as a beneficiary and take a look at the NEA® Income Protection (Disability) Insurance Plan
4. Create a will
You’re now responsible for a new life — and what would happen to them if you were no longer around. While that may be a bit frightening, creating a will can help ensure your wishes are carried out after your death. Name caretakers for your child, declare where your assets should go and give yourself some added peace of mind.
The birth of a child isn’t the only time you should reassess your financial needs — watch this video to learn more about protecting what matters most
This material may contain marketing language, on products issued by The Prudential Insurance Company of America,
that has not yet been approved in all states.
NEA Group Term Life Insurance, NEA Level Premium Group Term Life Insurance, and NEA Guaranteed Issue Life Insurance Plan all are issued by The Prudential Insurance Company of America, Newark, NJ. The Booklet-Certificate contains all details including any policy exclusions, limitations and restrictions that may apply. CA COA #1179, NAIC #68241. Contract Series 83500, 31300.