Child’s Age
Birth
- Start/Update Life Insurance.
- Get/Update Will or Living Trust.
- Open 529 plan.
- start funding monthly.
One Year Old
- Add child to a credit card that you pay fully every month. This will build their credit rating.
17 Years Old
Get the following, three Powers of Attorney.
- Young Adult Power of Attorney. website >
- Once your child turns 18, you no longer have automatic rights to:
- Talk to their doctors
- Access medical updates
- View school records
- Help with banking or legal decisions
- Handle insurance or emergencies for them
- Once your child turns 18, you no longer have automatic rights to:
- Healthcare Power of Attorney: Allows you to speak to doctors and make decisions if they can’t.
- Durable Power of Attorney: Allows you to help with:
- Banking issues
- Financial aid forms
- Apartment leases
- Insurance paperwork
- Traveling emergencies
- HIPAA Release: Allows medical staff to legally share health information with you.
18 Years Old
- Get Credit Card
- If parent has already built your credit rating you should be able to get a regular credit card.
- If no credit has been built, get a Secured Credit card.
- Get a copy of your credit report from all three credit agencies.
19 Years Old
- Close Secured Credit Card, and get a regular credit card, since you now have a credit rating.
By Life Event
Rent Apartment / House
- Get renters insurance
Marriage
- Update beneficiaries on all financial documents.
- Get a Will or Living Trust.
- Start Life Insurance.
Child First Job
- Open Roth IRA
- You can only add as much as the child makes per year.
- Fund by either childs income, or parent contribution.
- If getting paid cash, keep a record of earnings.
Child Drivers License
- Add child to car insurance.
Child College
- Get renters insurance for dorm room or off campus housing.
Child Graduate School
- Remove as dependent on tax returns
- Allows them to qualify for the Lifetime Learning Credit: $2,000 a year.
- May qualify for the Student Loan Interest Deduction: $2,500