The first list is the more important of the two. It lists six important documents you need to have.

Document #1 – HIPAA release form

As you probably know, when your child turns 18, you, as a parent, lose access to their medical records.

With a universal HIPAA form, parents can do something as simple as obtain a copy of U.S. lab work results for a child on an overseas program. It can also be important for situations when parents are far away and need information on their child’s care. A universal HIPAA isn’t limited to a single provider; it’s not the same form your young adult may have signed at an individual doctor’s office.

The article recommends checking out the American Bar Association’s sample form.

Document #2 – Healthcare proxy

This is the document that lets a parent make medical decisions on behalf of an incapacitated adult child. The article cites the example of a parent whose son was admitted to the ER and ended up needing a spinal tap . She promptly got the healthcare proxy afterward. The article says these can be found online or obtained from an attorney. AARP maintains free, state-specific healthcare directives on its site here.

Document #3 – Living will

Next the article goes to a topic we’d all like to avoid, but which we can’t. Your child needs a living will to dictate what level of life-sustaining care they will be given, such as ventilator, feeding tube, etc . Sadly, you need to know what to do in a life-or-death situation–and you need to honor your child’s [last] wishes. Again, AARP to the rescue (same website as above.)

Document #4 – Durable power of attorney for finances

If your child is hospitalized, someone needs to continue to pay his or her bills, like rent and car loans. While you might be able to do this if you have passwords to your child’s financial accounts. The article says that that might even violate “a provider’s terms of service.”

Having a durable power of attorney can be a way to step in and help without having to seek judicial permission to act on the child’s behalf. There are different kinds of financial powers of attorney, and laws vary by state, so families should consult an attorney about what works best for their situation. And there are varying schools of thought about how much authority a young adult should give to a parent. Some durable powers of attorney take effect only in cases where the child is considered disabled due to reasons such as mental illness, physical illness or chronic drug use. Others take effect immediately upon signing.

Document #5 – Health insurance

While young adults typically can stay on their parent’s health-insurance plan until they are 26 years old, some families, for cost or other reasons, may choose to purchase a school’s insurance plan instead. In these cases, parents might want to consider having access to the plan if they want information on billing and coverage.

Document #6 – FERPA waiver

Even if you’re paying your child’s tuition, you have no access to their academic records, including disciplinary records. For all of that, you’ll need a FERPA waiver. Check with the school for its version of the form.

For a more interesting list but one that might not be as critical, continue reading. This is the list of college survival gear.

Item #1 – Laptop sleeve

Get one to protect your child’s laptop, which you probably bought for them. The article recommends the Nillkin Laptop Sleeve, which it says, “will repel water and shield a computer from an accidental knock off the table.” This model also doubles as a laptop stand. Visit Nillkin.com.

Item #2 – Shower tote

I think it’s super nasty to be standing barefoot on the same concrete floor 100 other people just stood on. That’s just gross, so a pair of flipflops might be handy. The WSJ suggests a tote to haul all the stuff down the hall way to the nasty shower area. They recommend the Room Essentials Mesh Caddy from Target.com.

Item #3 – Your mother

Actually, not your mother – that would be great…or maybe not. Instead of your mom saying, “now, just retrace your steps. Where did you set it down,” you can just buy Apple Airtags so later you can find where you left your keys or other vital items. Go to Apple.com to buy a set.

Item #4 – A computer dongle

While Apple gear is clearly superior to Windows gear, not everyone agrees, and you may be forced to use something more primitive than USB-C. For that, you need a USB adapter, such as the Anker 55 USB-C Hub, which is available at Anker.com. I can’t vouch for this particular one, but I have an Anker hub connected to my MacBook Pro now.

Item #5 – An online organizer

The article suggests using Notion, which is recommended by a current college senior. It’s one of many apps that can help organize your life. These apps blur the lines of spreadsheet/database/Trapper Keeper (remember those?)/ etc. I try to stick to one thing because I know I’m subject to shiny object syndrome, where I want to try the latest tech stack. I stick with Todoist and a short list of other tools. Both Notion and Todoist offer free versions.

Item #6 – Mattress topper

I attended college while living at home where I had a very nice mattress–and an excellent laundry service–but a bad mattress is miserable. The article recommends the Sleepyhead Copper Mattress Topper from Sleepyheadusa.com. The tagline of its website is “Mattress toppers for dorm comfort,” so they might know what they’re talking about.

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Tie your budget to a relevant timeframe

For example, while an annual budget might be a good idea for a bigger picture view, it’s difficult to put into practice as no two months are alike.  I recommend starting with an annual budget based on your expected income for the year and then breaking it down to monthly or even bi-weekly budget, if that is easier to match your cash flow.  Make sure that you start with paying yourself first.  This means that you set aside a fixed percentage or dollar amount that you would like to save (I’d recommend saving 10-15% in retirement accounts) and then start including all of your expenses.  Budget categories that are often missed that I would recommend including would be car maintenance/replacement, medical expenses, property taxes, and license and registration fees.  I would also include in your 2021 budget a “Stuff I forgot to budget for” line item.

Get granular…and keep the big-picture in mind

The article’s next suggestion is to get even more granular with the budget, such as going from a pay-period-based budget to a daily budget, what the author calls a “micro budget.”  This approach, the author says, is a good approach if you find yourself asking, “where does all my money go?”  Strike a balance between little picture and big picture.  Don’t get too bogged down in the short-term nitty-gritty details, but don’t be too broad.  Daily budgets or “micro budgets” never worked for me but do what’s best for your situation.  Use automatic deductions and transfers to work toward those longer-term, bigger-picture goals, like creating an emergency fund or saving for a big purchase.

Celebrate short-term wins

Don’t only come down on yourself when you blow through a budget category but take time to celebrate those short-term budget wins.  If you’re looking for a good budgeting tool, my wife and I have used YNAB (You Need A Budget) for over a year.  It has some nice reporting features where I can review my spending and see where I over-estimated or under-estimated.  It takes time to refine your budgeting process.  Be gracious with yourself and don’t give up.  Budgeting gives you freedom and peace of mind knowing you are living within your means.

The information provided here is for general information only and should not be considered an individualized recommendation or personalized investment advice.

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Prepare your emergency fund

Are you familiar with Murphy’s Law? Murphy’s Law is an adage that is typically stated as, “Anything that can go wrong will go wrong.” Prepare for the unexpected by setting aside 3-6 months of expenses in a high-yielding savings account or an account that you will not be tempted to spend. An emergency fund is just that, for emergencies, ONLY. When the furnace goes out in the middle of December or the baby swallows a penny and you must go to the ER, you have the money set aside and can avoid going into debt.

Create post-baby budget with spouse

Some people hear the word “budget,” and a cold shiver runs down their spine. Others hear the word “budget” and think this six-letter word is only secondary to another six-letter word, heaven—having a Type-A personality, I fall in the latter category. Whether you make minimum wage, or you make six figures, a budget is the key to building wealth. Budgeting allows you to tell your money where it should go instead of wondering where your money went at the end of the month. There are many ways to keep a budget. You can be as low-tech as a piece of pencil and paper (I would never recommend using a pen as I’ve yet to have a month where I didn’t have to shift money around within my budget) or as high-tech as budgeting software that can link with your debit/credit card and automatically import and categorize every transaction making the budgeting process simple and painless.

Buy Second-Hand

Becoming a parent can be stressful. There is a lot out there that is promoted to new parents as “must-haves.” Instead of listening to the marketers, start talking with your friends and colleagues who have already taken the leap into parenthood. They will be able to steer you straight as to what you do and do not need. Buy second-hand through garage sales or thrift stores. Most baby clothes are only worn a few times before they are outgrown, so you can often find clothes in good condition at great prices. Your friends may also be an excellent source for clothes and baby items. Most people hold on to their baby stuff until they are done having kids. If you have close friends, some of them will even let you share their stuff!

Start 529 College Savings Plan

Maybe it is the nerd in me coming out but one of the first things I did when I found out we were expecting was open a 529 college savings plan. We live in Indiana, and the state offers an annual 20% tax credit up to $5,000 for saving in this type of plan ($5,000 x 20% = $1,000 tax credit). My wife and I do not plan to pay for our child’s entire college education, but we do want to have some money set aside to help pay for their further education. By starting out early, it can make a huge difference through the power of compound interest. In 18 years, using a 7% growth rate, this $5,000 could be worth $16,900! To learn more about 529s, check out this article https://www.fidelity.com/learning-center/personal-finance/college-planning/college-529-spending

Jordan Arnold
Financial Advisor and Dad-to-be

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If you feel overwhelmed by financial questions and want to make sure you don’t miss important steps, check out the document to the left for a list of topics that will clarify the process and ensure you are on the same page with your spouse-to-be.

Helpful links:

• Read our blog post on why creating a will is so important
• Check out this article on the benefits of joint financial accounts
• Are you thinking about buying a house?  Read this post.

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