Young Families

Young family representing planned ahead financial planning clients swinging child in air for fall pictures

Financial planning focused on family.

Between the cost of daycare, potential loss of one income, insurance, and saving for future education – kids can be both your greatest joy and largest expense. This is why it is important to have a financial plan in place. By having a plan and regular check-ins with your advisor, you can focus more on your family (or catching up on much needed sleep) and less on any financial “what ifs.”

We help young families:

Create a financial plan, including a budget and savings plan
Determine if a stay-at-home parent is possible or beneficial to your financial situation
Financially-plan for future children
Determine how to merge finances (if this is desired)
Understand what steps to take to protect your family’s financial well-being (estate planning, life insurance, term insurance, etc.)
Analyze your employee benefits and if you are getting the greatest benefit out of what is available for you and your family
Invest wisely for your retirement and your children’s future (529 college savings plans, custodial accounts, Roth IRAs for kids, etc.)
Determine what is feasible when it comes to a new home or vehicle purchase
Fit short-term goals, like a family vacation or new playground, into their savings strategy
Identify a financial roadmap to achieve your long-term goals

Questions Often Asked by Young Parents or Families

Where should I invest for my child's college education?

There are multiple investment options for your child’s future education, each with their own benefits and drawbacks. 529 college savings plans are probably the most popular way to save. 529 plans are tax-advantaged accounts – but, only when the expenses are used for qualified education expenses. This means that if your child does not end up using the the money for qualified education expenses, they can be penalized (taxed) as the funds are withdrawn. Depending on the situation, we typically recommend a multi-faceted approach that takes advantage of multiple types of accounts to ensure non-qualified education expenses are also covered. This also helps reduce the associated tax penalty if your child were to choose a non-qualified education path.

Do I need life insurance?

Yes! The loss of one parent’s income can devastate a family financially. It is heartbreaking to think about leaving your family earlier than anticipated, but it is important to have a plan in place in the event the unexpected were to happen. Life insurance can help the surviving spouse continue to financially provide for a family, cover a mortgage that was intended to be covered by dual income, and cover any expenses associated with the loss. Unfortunately, what is offered through many employers is much lower than the amount necessary to maintain financial security in the event of the loss of a parent. This often leads to the recommendation of supplemental life insurance. Your advisor can help you calculate exactly how much supplemental insurance you may want to consider purchasing.

How do I know if we can afford to have another kid?

There is no question that kids are a blessing, but they also come with additional costs that can be beneficial to factor into your financial plan. When considering how a kid would impact your financial situation, you have to consider the obvious associated costs as well as the impact on your ability to save for retirement. Your plan can help you evaluate your current expenses, income, and what amount you could budget to cover child-related expenses (childcare, diapers, health insurance, etc.). In addition, it is important to consider long-term planning, and how it would impact your ability to save for your own retirement, fund expenses related to any of your other kids’ education, and if another kid would require you to move (altering your monthly payments). If you are hoping to grow your family, your advisor can work with you on an updated budget and savings plan to help you understand the financial impact and keep you on track to achieving your goals.