Financial Tips for Growing Families
How to maintain your family’s finances now & well into the future.
Presented by Member One Federal Credit Union
Whether you have a new baby on the way or already have children in your household, being financially stable should be a top priority. As vacation season winds down and the school routine ramps up, it’s a perfect time to reexamine your family’s financial situation to ensure you’re on track. We’re here to offer tips for setting your family up for success now and into the years ahead.
Ensure your household finances are stable. While it can be tough to determine what to make a financial priority, there are a few things that should always remain at the top of your list. These include meeting your basic needs like food and electricity, paying down debts, setting aside an emergency fund, and saving for the future. Maintaining a household budget is key to ensuring that you live within your means to meet these financial goals. If you’re finding it difficult to pay your housing costs or set aside savings, take a hard look at your budget to identify areas to cut down on expenses.
Take steps to protect your children financially. There are several ways to do this, but some options include investing in life insurance and establishing a will. Life insurance serves as a financial safety net for your dependents in case something happens to you or your spouse. A will ensures that the distribution of your assets and how your children are cared for after you’re gone are followed according to your wishes. While these investments in your future won’t yield a return right away, they’ll provide peace of mind and make certain that what’s most important to you is taken care of.
Save for your child’s future. It can be a daunting task figuring out how much you should save, especially when you add children to the equation. A good starting point is to decide what you’re saving for. For children, a popular long-term savings goal is higher education or even a wedding, but you may also want to consider short-term goals such as summer camps, family trips, or educational tools. All savings goals should be worked into your family budget to help determine what you can truly afford. To reach the long-term savings goals, look into education savings accounts, 529 plans, or even a Roth IRA. It’s important to research your options as each has specific criteria for contributing and unique benefits. Since there’s no best way to save for your child’s future, you may want to consult a financial advisor. As with any savings plan, the earlier you start the better.
Making sure your household is financially solid is one of the best ways to set your family up for success. It can be a difficult adjustment—in several ways—when a little one joins your clan. But following these tips could help guide you and your expanding family on the path to financial success.
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