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And baby makes three
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December 14, 2001: 5:18 p.m. ET
If you're going to have a baby, make sure your financial life is in order.
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NEW YORK (CNN/Money) - Got a new family member on the way? Before Junior arrives, you may want to take a look at your insurance and budget to make sure that you're all set for the arrival of the wee one. Babies may be tiny bundles of sweetness, but they'll cost you dearly in formula, diapers and supplies -- and that's even before they head to nursery school.
But you can make it a little easier on your wallet by preparing in advance. You'll have to ensure you have enough to cover day-to-day supplies and that you can fit longer-term savings goals -- like college -- in your budget. These suggestions will help you shore up your finances so your child can have everything money can buy.
If you're going to have a baby
1) Set aside an emergency fund. Put three to six months' of expenses in a savings or money market account.
2) Review insurance coverage. Boost life insurance coverage to 5 to 10 times combined spouses' salaries.
3) Review medical coverage. Make sure you follow the proper procedures for getting the new person on your medical policy.
4) Review work medical leave policies. Make sure you follow workplace leave policies.
5) Check retirement allocations. Make sure you have your retirement assets balanced.
6) Open a section 529 account. Upon birth, get that college-funding plan in action.
7) Modify your budget. Reduce optional spending, lower expensive debt, allocate funds for baby equipment, food and clothes.
8) Review your estate plans. Update your will, living-will healthcare proxy and power-of-attorney documents. 
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