Financially what to do when you have a child

This happy occasion is a smart time to strategically review and adjust your plans to reflect new goals and a secure future for your newest family member.

The experienced Wealth Services professionals at Synovus can help you identify and plan for your financial goals and prepare a solid foundation for your growing family.

Update your will and estate plan

The birth of a child is a good reason to revisit your will and estate plan. A will is not just about distributing assets. It’s a vital document that can appoint guardians for your child in the event you become incapacitated or pass away while your child is a minor.

Depending on the laws of your state, the state may decide who cares for your child in the absence of a will, and the state’s decision may or may not align with your wishes.

Estate planning extends beyond wills. It can include trusts to manage assets for your child’s benefit, ensuring those assets are used as you see fit.

Consider life insurance

If you haven’t already considered life insurance, now is the time. It’s not just about covering funeral expenses, but also providing financial stability for your family in your absence.

You generally have two options for life insurance: term or whole life insurance.

Term life insurance is typically more affordable but expires after a set number of years and has no cash value. Whole life insurance tends to be more expensive, but it builds cash value over time and doesn’t expire. Your Synovus advisor can help recommend the right type of policy and coverage limits for your situation.

Establish a college fund

Young people today need education to compete in the labor market, and college education costs more than ever.

According to a study by Georgetown University, between 1980 and 2020, the average price of an undergraduate degree increased by 169%, while earnings for young workers only increased by 19% over the same period.1

Opening a 529 college savings plan early can leverage the power of compounding earnings, significantly easing the financial burden or paying for college down the line. These plans also offer tax advantages and flexibility to be used across a range of educational expenses.

Review and adjust beneficiaries

The addition of a child means it’s time to review and update beneficiaries on all financial accounts, including life insurance policies, retirement accounts and any investment accounts.

This doesn’t necessarily mean naming your minor child as a beneficiary. While you’re technically allowed to name a minor as a primary or contingent beneficiary, companies cannot pay proceeds to anyone under the age of majority, usually 18 to 21.2

To ensure life insurance proceeds are available to support your children, name your spouse, another adult custodian, or a trust as the beneficiary. This step ensures that your assets are distributed according to your wishes and that your child’s financial future is protected.

Financial advice and services tailored for you

Synovus wealth professionals have broad experience in private banking, investment strategy and planning, asset management and estate planning.

Our team delivers knowledgeable insights to help you achieve your financial goals.

Synovus can help

To learn more, talk with a Synovus financial professional by calling 888-SYNOVUS (796-6887) or visiting your local branch. Additional information is available at synovus.com/wealth.