Likewise, you should have disability insurance that will replace your income in the event that illness or accident prevents you from working. Check your health insurance. Find out if you can add the baby to your or your spouse’s health insurance policy. Know exactly what it will cover (such as prenatal care, labor and delivery) and plan for the expenses that will not be covered.Check your benefits at work. Find out about your and your spouse’s family leave policy. Ask about any other benefits for parents, such as education assistance or on-site day care.

Start saving for college. College seems like a million miles away at this point, but this is actually the best time to start saving for it. Why? Because compounding will pack a powerful punch when you get started so soon. Just a hundred bucks a month and an average annual growth rate of 9 percent works out to nearly $50,000 by the time your child turns 18–plenty to tackle those tuition costs. Take advantage of the tax breaks available, starting with the one I consider to be the best–a 529 plan.Resolve any financial conflicts.

If you haven’t already, take the time needed to firmly agree on your spending priorities and long-term financial goals. A family budget could be just the thing for keeping you both on track.THE BOTTOM LINE: When a baby’s on the way, decorating the nursery should actually be the least of your worries. Get your financial ducks in a row so that you can really enjoy that newest (and cutest) member of the family.THE ARMCHAIR MILLIONAIRE WEEKLY SURVEY: High-powered jobs pay high-powered salaries–but is the money worth the sacrifices? Log on to www.armchairmillionaire.com and let us know.

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