5 Long-Term Financial Planning Tips for Families
Great financial planning is the key to lifelong security, no matter the makeup of your household. For families, a plan may look a little different than it would for a single person or a couple with no children.
Whether you are in the early stages of building a family or are simply seeking some tips on improving your financial planning skills, we have some helpful advice for making sure you and your family are on track for a bright financial future.
Let’s dive into some of the key financial planning tips for families!
1. Start with “The Talk”
Before you can make the perfect financial plan for your family, make sure that you and your partner have a serious conversation about your financial goals. Whether you want to pay down debt, buy a house, go on a big trip, or do anything else under the sun, it’s important to make sure that you’re on the same page.
Establish a solid timeline for your goals, and make sure you’re both involved in the financial planning process. You’re building a life and a family together, so it’s important to make sure both of you have your goals accounted for.
2. Build Your Financial Foundation
When starting your financial journey as a couple, it’s important to set up a solid foundation for future growth. This foundation can look a little different depending on the couple, but key points to hit are establishing a solid budget and building up your savings.
If you start with a well-planned budget, the rest of the financial foundation is sure to follow. Make a monthly budget that helps you get by while still putting money aside for what matters to you most. There’s no right or wrong way to save, but ensuring that the leftover funds in your budget are targeted towards your shared financial goals is a crucial step in building a strong foundation for your future.
3. Prioritize Comprehensive Insurance Plans
Make sure that your insurance plans include yourself, your partner, and the things you care about most. Whether you’re looking at health insurance, car insurance, or any other form of personal insurance, ensure that both partners have accurate coverage with the best rates.
Establishing life insurance policies in both of your names can help get you on the right track as well. Life insurance policies provide protection and financial support for loved ones in case of unexpected loss, and by providing this sense of security for your partner, you can protect both their future and the future of the family you build together.
4. Save with Your Children in Mind
As you build your family, it’s important to adjust your budgeting priorities along the way. Kids cost a lot of money, but with the right financial plan, you can make just about anything work! All families out there know that with children, it’s always something. By keeping your kids’ ages and the corresponding needs in mind while budgeting, you can make sure that you’re ready for anything!
You should also start college savings plans when your kids are young. The longer you’re able to let your investment sit, the better the payoff will be once they’re ready to make that decision. Also consider recurring costs like sports equipment, school trips, and new clothes every year.
5. Start Your Retirement Plans ASAP
At Gretchen Rehm Financial, we are huge proponents of retirement planning at all stages of life. Whether you’ve just started your career or are a little bit down the road, it’s VERY important to have comprehensive retirement plans in place for both yourself and your partner.
With the many other components of financial planning for a family, retirement often falls to the wayside for many adults. But, by prioritizing your retirement savings, you benefit not only yourself but your children.
Having a decent retirement savings fund and even long-term care insurance can help take the burden of planning for your future off of your kids and limit the stress you may be under in your old age. Having a solid plan in place can help you stay prepared for just about anything.
Financial planning for a family is not a task for the faint of heart. It takes a ton of attention to detail and even more serious conversations with both your partner and your financial planner.
By meeting with a financial professional to establish your financial plan, you can make sure that you’re making the most informed decisions surrounding your family’s finances. Our team at Gretchen Rehm Financial can walk through the process of establishing your financial plan and help you reach financial freedom on your terms!
