4. Revising your spending plan

Life’s Financial Journeys

Heading Off to College
Getting Out on Your Own
Blending Two Lives
Having a Child
Emptying the Nest
Entering Retirement
Death of a Life Partner
Military Life

Revising your spending plan. “How will my income and expenses change as a new parent?”

While keeping spending under control and managing money is important prior to having a child, these tasks become much more important and complicated with the arrival of a new baby.

Your new spending plan will need to take into consideration many new expenses. Further, your future goals will be revised to include the education of your child for many years to come. Fortunately, there are a number of aspects of the income tax system that reduce the financial burden of being a parent.

The following subtasks may assist you in revising your spending plan. You will find detailed resources for these subtasks under the links in the right column of this page.

Subtask 1: Set financial goals

Subtask 2: Determine your income and expenses

Subtask 3: Develop a spending plan

Subtask 4: Understand the income tax impacts of having a child

Having a Child Tasks

1. Protecting against risk
2. Updating your estate plan
3. Arranging child care
4. Revising your spending plan
5. Saving for your child’s education

Revising your spending plan Subtasks

1. Set financial goals
2. Determine your income and expenses
3. Develop a spending plan
4. Understand the income tax impacts of having a child


NAPFA Consumer Education Foundation
8700 W. Bryn Mawr Ave., Suite 700N
Chicago, IL 60631
(847) 483–5400 ext. 106