Guest post by: Sara Bailey
Are you a parent looking to organize your finances? Wondering where to start? Financial planning should be at the top of every parent’s “to-do” list, so make it a priority to get your finances straight with these helpful hints:
Organize Your Assets
One of the first steps to financial planning is organizing your assets. Gather bank statements, mortgage documents, and any other items that pertain to your finances. Figuring out the value of your home will help you get a head start in calculating your assets, so use this tool to find your home’s value. This is also a good time to review your credit report to make sure there are no inaccuracies that could impact your future. Identity theft can happen to anyone, so it’s wise to stay on top of your credit report.
Keep Multiple Savings
As a parent, you’re constantly thinking about your family’s future. One of the best ways you can prepare for what lies ahead is to start saving. You can set multiple goals for your savings accounts. There’s more to save for than just college. Start thinking about what you would like to do when the kids are grown up as well. Retirement should be a time for parents to relax and enjoy life after working so hard to raise a family. Make sure you are prepared with a retirement fund that can keep you comfortable and happy when the time comes.
Invest Wisely
Investments are a wonderful way to enhance your financial portfolio and better your family’s future. When you think of investing, you likely think of the stock market. While putting money into stocks can definitely earn you profits, there are other ways to invest your money as well. From minerals to becoming a silent partner, you can help your assets grow in a variety of ways. If you do decide to make a major leap, think about consulting with a financial advisor to make sure you’re being smart with your money.
Update Insurance Policies
Insurance is another way to invest in your family’s health and future. Health insurance will help you cover any medical costs that arise as your children grow. It’s also a good idea to look into life insurance and familiarize yourself with the different kinds of policies and protections that are out there. Having life insurance is one of the best ways you can protect your family. Coverage provides financial peace of mind if the unthinkable happens, but you can also cash out certain policies for other expenses, like retirement or higher education. Review your car insurance as well. Instead of just purchasing minimum coverage, you may prefer full coverage so that your family has full protection. You can save on auto insurance by grouping other insurance policies together, being a safe driver, and installing an anti-theft device in your car.
Consider Charitable Giving
Philanthropy is a wonderful way to instill positive values in your children and connect your family. Giving a portion of your assets to organizations in need helps build up your community as well. To make the most of your giving, sit down as a family to talk about the causes that mean the most to each of you. Make an activity of it and give each family member a certain amount to donate to the cause they care about. Be sure to check out non-profit ratings before you give to ensure your money is being put to good use.
Have a Will
Life insurance will help your family in their time of need, but a will can make managing finances easier if something should happen to you. Work with an attorney to write out a will and make sure all of your assets are included in it. Think about your burial wishes, whether you’d like to be cremated to prefer a traditional burial, and put these last wishes into writing. It’s never pleasant to think about our own demise, but doing so becomes a necessity when you’re a parent.
Financial planning is something every family should accomplish. As a parent, you want what’s best for your children and organizing your assets is a great way to give them the stability they need to grow and thrive. So sit down and get your finances in order to offer your family — and yourself — some peace of mind.