Financial Planning for Families

Author’s Bio: Val Anne is an in-house writer from Franklin Debt Relief, a company specializing in programs for people with high credit card debt.

It is no secret that families require a different financial plan than single individuals.  However, many people seem to keep their old savings methods after getting married and having kids.  While these methods are still semi-effective, adjusting your financial plan to fit the needs of your family will allow you to save more money and budget more wisely in the long run.

The first thing you should do after getting married or having a child is to re-evaluate your tax status.  This includes the amount of deductions you allow on your W-2, as well as your actually filing status as a single or
married individual.  If you are married, look at the advantages and disadvantages of filing jointly.  Similarly, after having a child, you may wish to change your deduction status on your W-2 to reflect that you now have a dependent to provide for.

Second, purchase quality life and disability insurance for you and your spouse, if married.  During you single years, life insurance was of little priority, however as you grow older and start a family, you have more
people who depend on you, your well-being and your income.

Third, begin working on a family savings plan and a retirement plan. Always remember, that you aren’t getting younger.  Saving for your retirement should become a priority as soon as you begin making an income, but if you have waited until your married years, you should look into more aggressive retirement savings
plans to get you started.  In regards to a family savings plan, consider opening up a savings account or high yield interest bearing account for your family and making deposits into the account on a bi-weekly or monthly basis, depending on how you get paid.  This savings account is best used for family emergencies or unexpected events in your life, but you can also put extra money in it for things like vacation.

Finally, in addition to working on a retirement savings plan and a family emergency fund, you may also want to start thinking about your child’s education fund. A college education is a very large expense in a child’s life and you may wish to help him or her with this investment by putting money away in a savings account or setting up an investing plan such as a 529 to help out.

While these may seem like very basic financial plans for the family, their importance cannot be over stated.  If you are just starting a family or have been recently married, try initiating only one or two financial changes at once.  After you have gotten use to the new financial system, try adding a few more changes if they seem like something that may benefit you.

 


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