*As busy parents, it is so easy to get caught up in the everyday craziness. It can be challenging to think about the future, let alone prepare for it financially.
However, while you are understandably trying to get through your daily to-do list and make sure everyone is healthy and happy and fed and getting to bed at a somewhat reasonable hour, it is still important to think about your family’s finances.
Fortunately, you don’t need a ton of time to start planning for and protecting your family’s future—all of the tips below can be done over a course of weeks or even months—and you also don’t need to have the wealth of Beyoncé or LeBron James to protect your family’s money. Everyone, no matter what their jobs or financial circumstances look like, should do what they can to create a stable financial future.
Write a Will
If you want your kids to have a relatively stress-free future once you and your spouse pass away, it is imperative that you have a will in place. This can be an understandably emotional topic to consider, but it’s also very reassuring to know that when you and your spouse pass on, your family will be taken care of and any debts will be accounted for—and that the state will not take over your estate.
Make Sure You Have a Solid Insurance Plans in Place
Not to dwell on a topic that many people find to be morbid, but it is also highly important to have insurance policies that will provide enough coverage in case an accident or fire should occur. Although it is human nature to spend the least amount of your hard-earned money on things that don’t provide you with an immediate return, you don’t want to scrimp on your insurance policies just to keep the premiums low. If something were to happen to the breadwinner of your family—and it goes without saying that you hope this never happens—you want to be sure you can provide for your family should that person no longer be able to work.
The same goes for your home and its contents—if it was damaged by a flood, tornado or fire, could you replace everything and rebuild? These are all important questions to go over with a financial planner.
Work with a Financial Planner
A financial planner can offer advice on important topics like investments, savings, insurance and more. For instance, if you were taught by your folks that investments are risky and should be avoided at all costs, a financial planner can assure you which ones are the most prudent, as well as how you should plan your savings versus investments accounts, based on your age and how long you plan on working. If you plan on starting an investment account, the financial planner can also set it up for you and schedule regular financial “check-ups” to be sure you are meeting your financial goals.
Start a Savings Account
If you struggle with credit card debt because you use it to pay for emergency situations, now is the time to start paying yourself first by setting up a savings account. Ideally, you should strive to save 10 to 15 percent of your net income, but if that seems too high for now, you can start with setting aside five percent per paycheck or a set amount like $100 a month. Your goal is to try to have an emergency fund of several thousand dollars built up that will cover any unforeseen financial crises while keeping your Visa out of it.
Protect Your Good Financial Name
You work very hard for your money. The last think you need is to have your identity stolen, which can impact your credit score and wreak all types of financial havoc. To protect your family’s financial future, be sure you are also protecting your sensitive identity information. An identity theft protection plan can provide vigilant round-the-clock monitoring of all of your bank and other accounts. If the worst happens and your ID is stolen, they can nip the problem in the bud and work hard to rectify the situation.
Get Peace of Mind through Financial Planning
You already protect your family by making sure your home is safe and secure. Now it’s time to take care of your finances and protect their financial future as well. While some of these topics can be unnerving to think about, you will feel so much more at ease knowing that your finances are in good shape and that your kids will be taken care of in the future.