By Daniel Staiger, CFP®, CRPC®
There are few events in life that are as life-altering as becoming a parent. Ask any dad you know, and they’ll tell you how dramatically different their life looks now versus when they lived as a bachelor.
When the reality that I would become a father began to settle in over six years ago, I immediately began to think new thoughts. I started to consider the future and how I could best protect the family I was growing. Up until this point, I had focused my energy on my own personal joy and that of my wife. Now it was time to think about my child and my child’s future. I wanted to be a committed father who contributed to my children’s well-being, and part of that commitment involved changing my financial decisions.
If you are a parent, or are thinking of becoming one, read on to think through how your life and financial picture may shift.
Once a baby enters the picture, you begin to see his or her needs above your own. You don’t just spend money like you used to, you start saving to provide a comfortable life for your child.
Now that we had more to think about beyond our personal interests, my wife and I made the decision to cut back on travel and entertainment expenses and reallocate that money to new expenses and goals. Fatherhood made me more conscious of our budget as I scouted for new items: diapers, wipes, baby clothes. We also had to consider the change in my wife’s pay as she reduced her hours to part time in order to stay home with the children. Not to mention the additional cost of classes for dance, art, and sports, and day trips to children’s museums, aquariums, and zoos.
Not only did we change the way our expenses were handled, but we also needed to start thinking about our children’s future and how we wanted to set them up for success. This involved starting 529 accounts to plan for their future college education costs and making sure our medical coverage was appropriate given the healthcare needs of our children.
In addition to these changes, we had to consider updated insurance needs. Was our life insurance coverage appropriate now that we were adding people to the picture beyond just my wife and myself? We also looked into disability insurance in order to protect our family in the instance that I should become unable to work due to a disability.
As I’m sure you’re aware, kids can cost quite a bit of money! It’s true that starting and growing a family forced me to take on new and different responsibilities that centered around my child’s welfare. However, even though the transition to parenting has required less focus on myself and more on my family, I can say that the shift has been completely worth it. The drive, focus, and intentionality that being a dad has brought into my daily habits has all been centered on how I can pursue the best future for my family.
Before having my kids, I didn’t think much further than what I had planned for the following weekend. But now, as I think ahead and plan for the rest of my life, I have my wife and kids to thank for changing my perspective and leading us down the path to financial freedom together. I can say with confidence that it brings me great pleasure to know that as a father, I am leaving a legacy to my kids with the financial decisions and knowledge I’ve gained over the years—one that goes beyond just money.
If you’re thinking of becoming a parent or already are one, we at Matarazzo Staiger Wealth Management are here to support you and help guide your evolving financial decisions—so you can experience a smoother transition to parenthood with clarity and lasting stability. We want to help take financial matters off your already full plate and set your growing family up for success by providing personalized attention and care to your expanding needs.
To get started, contact me by scheduling a no-obligation introductory meeting by emailing me at daniel.staiger@raymondjames.com or calling (631) 319-6777.
Daniel Staiger is a partner at Matarazzo Staiger Wealth Management and Financial Advisor with Raymond James Financial Services. Matarazzo Staiger Wealth Management is an Independent Practice and our team is committed to helping families, pre-retirees, and union employees build a sense of security and confidence around their financial future. With more than 10 years of experience, Daniel is dedicated to providing trusted advice and tailored solutions that help his clients realize their financial potential. He is known for building relationships with his clients so he can better understand their values and the goals they want to pursue. As a CERTIFIED FINANCIAL PLANNER™ and Chartered Retirement Planning Counselor℠ professional, Daniel specializes in serving union employees, such as tradespeople and teachers, with well-thought-out guidance and a personal touch. When he’s not working, Daniel spends his time pursuing interests such as guitar, volleyball, golf, and cooking. He is also an active member of his church. To learn more about Daniel, connect with him on LinkedIn.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.
Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation.
Any opinions are those of Daniel Staiger and not necessarily those of Raymond James.
