Four ways to enhance your growing family’s financial futureSubmitted by Agrawal Associates on July 24th, 2018
July 24, 2018
Managing personal finances can be a challenge, but adding children to the mix creates a new level of stress and complexity. It takes careful planning to ensure all the needs of a growing family are covered. Below are four strategies to enhance your family’s financial health.
1. Revise your financial goals
Having a child is a major lifestyle change, and it’s also a great time to review your goals and update your financial strategy. If the plan was to renovate your entire home in six months, having a baby may cause you to revisit your budget. Perhaps you tackle the kitchen first, and revamp the rest of your home in a few years.
2. Think about risk
Once a child enters the picture, risks like critical illness, a long-term disability or premature death become more relevant concerns. Protect your family by reviewing your life insurance needs and then determine what’s best for you. Estate planning is important too – spend some time thinking about wills, powers of attorney, and the appointed guardian of your child.
3. Budget for your children’s future
Right now it may be diapers, strollers and car seats, but your child will require a myriad of things as they grow. They may want to enroll in extracurricular activities like swimming, skiing or music lessons, which add up very quickly. Be sure to integrate this into your family’s financial plan – your budget should be revisited frequently!
4. Save for post-secondary education
If your budget allows, it’s a good idea to start saving for your child’s post-secondary education. Contributing to an RESP (Registered Education Savings Plan) is a sensible strategy for many families because the government offers a 20% matching grant, to a maximum of $500 per year, per child.
Planning ahead will keep your finances in check, but above all, it will provide your family with a sense of security and wellbeing. And remember, it’s never too late to enlist the help of a financial advisor to optimize your money for the future.