When you have a growing family, personal finances can become more complicated.
You may have only a spouse or children. It can be difficult to balance everything and ensure your family finances are in order.
Who has time to do everything?
Money management is a sensitive subject that can impact your marriage and family relationships. Yikes!
It doesn’t need to be difficult or time-consuming.
Table of Contents
What are family finances?
Consider Life Insurance
Budget like a Family
Start Saving for Your Children’s Education
Improve Your 401k
Start Talking
Final Thoughts
What are family finances?
The family finances are all income, expenses, spending patterns, and accounts that relate to maintaining a comfortable and successful household.
To improve your family’s financial situation, you should have a plan and specific goals in place to help create a stable financial environment for both your spouse and your children.
Here are some easy ways to improve the finances of your family, whether you’re just starting out or need to make changes.
Consider Life Insurance
It’s crucial to be prepared financially, whether you are a couple with a growing child or if you are currently married.
What happens if you lose your income due to an unexpected event, such as a sudden death? What would happen to your family’s financial future and finances if something unexpected happened?
We don’t like to think about it, but we should be prepared to ensure that our families are financially secure in the event of an emergency.
As your family grows, and as financial obligations increase, it could be the right time to purchase a policy.
When you hear the word “life insurance”, you probably think of a few things, such as:
I don’t have the time to do that”
I’ve heard that life insurance is a fraud
“I cannot afford it at this time”
Bestow has changed the life insurance industry.
You can cancel Bestow at any time. It’s easy, cost-effective, and you don’t have to worry about it.
You can choose to begin with a policy of term life insurance with a shorter-term product, or you can jump straight into a longer-term plan. Plans can be as low as $5 per month.
It’s worth it to have peace of mind knowing that your family won’t be financially burdened if you were to die.
You can get started today with Bestow by requesting a free quote.
Budget like a Family
Budgeting is either something you love or loathe. There isn’t much in between when it comes to your feelings about your income, expenses, and major debts.
Personal, I don’t like budgets. However, I have created a simple one. This is more of a budget to track my expenses and ensure that my finances are in order.
To improve the financial health of a family, it is important to create a budget.
Keep your expenses low and understand your spending every week, monthly and annually.
If you have a good plan and are in control of your finances, there is nothing wrong with spending and enjoying money.
A budget can help you and your family make better financial decisions.
Budgeting may also seem like it will take a long time. But, in reality, it doesn’t. If you are able to dedicate one hour per week at the beginning, you will be in an excellent position.
Spreadsheets can help you get organized. This is how I began my personal budgeting, and it will be the same when my partner and I get married next year.
If you need guidance or assistance, there is another option.
You Need A Budget will help you create a budget, and organize your finances. The first month is free, but the cost per year is $84!
Try YNAB for Free Here
Start Saving for Your Children’s Education
In the United States, it’s not a secret that we have a problem with student debt.
Not only are recent graduates in debt, they also have trouble finding decent-paying jobs within their field.
You can see that there are many more factors, but that’s the main point.
A 529 plan can be a great way to start improving your family’s finances. It can be a great way to keep them out of debt in the event they decide to go back to school.
What is a 529 Plan? This is a college saving plan that provides tax and financial assistance benefits. It can also be used to invest and save for K-12 education costs in addition to college expenses.
There are currently two types of 529 Plans: College Savings Plans and Prepaid Tuition Plans.
The SEC is the best place to find out more about these plans and how they operate, as well as any regulations.
It’s easy to set up a 529 Plan. Vanguard is my personal recommendation. You can set it up in a matter of minutes.
Why I love Vanguard
No transfer or enrollment fees.
Investments starting at $3,000
Minimum additional investment is only $50
The maximum contribution is $500,000.
Vanguard is here to help you get started.
This plan will help you be more financially prepared in the future. It can also reduce the amount of student loan debt your child has to pay.
By taking advantage of 529 plans, you can allow your money to compound and grow for years.
Improve Your 401k
You should also start to think about your retirement as you advance in your career. You should invest consistently in a 401k plan sponsored by your employer.
No, not just consistently. You should also make sure you are investing in the best funds, minimize fees and capture as much compounding interest as possible.
As you and your partner prepare for retirement, it is important to have a nest-egg.
Some people are not able to invest well or take the time necessary to do so. You may be one of them. There is a solution that will ensure your 401k works at its best.
Blooom is a platform that analyzes your 401ks, 401as, 403bs, 457s, IRAs, TSPs and identifies hidden fees. It also provides fund suggestions and offers insights on how to grow your retirement funds.
Blooom offers 2 packages:
Free 401k Analysis
Pay Package
The paid version allows you to access financial assistance, adjust your portfolio regularly, receive security alerts and more.
You can choose either option to help you make better decisions about your finances and improve the financial situation of your family when you retire.
Blooom offers a free 401k analyzer to spouses who have a plan sponsored by their employer.
Start Talking
Communication is key to success in almost everything. Your relationships, your financial goals and your family’s finances are all included.
Money, bills and other financial issues can make people laugh. In your family dynamics (spouse, children) you should be discussing money.
Teach Your Children
Include your children in the financial discussions if you have them or plan to. In the early years, it’s best to keep things simple. However, you should get your children involved in finance discussions so that they can start learning as soon as possible.
You’ll help your children to learn the importance of saving and money. They’ll hopefully adopt these values as they grow up.
You Should Talk to Your Spouse
You and your partner will be more open to each other if you talk about money. It is important to be on the same page and work together as a couple.
You may both have different views about certain things, such as the cost of raising children. But it is important to find a balance that allows you to work together.
Communication is one of the most difficult things to do initially. I understand that the title of this article includes the word “easy.”
Once you start, it is easier to do and will have an immediate impact on your finances. This helps to reduce financial surprises, costs, overspending etc.
Discussing money with your partner can be a difficult topic. Here are some tips to help you.
Final Thoughts
Finances are still a big part of your life as you transition from being independent to having a family. It’s even more important as you work together with your partner and children to secure and protect your livelihood.
The above five options can help you get started, whether you want to make your family thrive on a budget or improve the finances of your family.
These options can help you to secure a more stable financial future for your family and to feel more at ease.
