Top 3 Tips for Young Families about Financial Planning

A new year is a great time to review your finances and your goals for the future—especially if you are a young, and growing, family. At Wealth Planning Corporation, we’re so proud to serve generations of clients from the same family who are referred to us by the people they trust the most. This Next-Gen group of financial planners is one of our core areas of new growth, and we have lots of helpful hints and getting-started advice for young families who want to create a financially sound future.

Tip #1: Establish an Emergency Fund

The first tip to creating financial stability for your family is to create an emergency fund. These “rainy day” funds should be able to cover 3-6 months of your family’s expenses to cover you in the event of a life change or income situation. The funds should be reevaluated regularly as your family grows and your income needs change. Creating an emergency fund can create a lot of peace of mind—and it can also help stave off unnecessary consumer debt by being a potential source of cash when needed.

 

Tip #2: Review and Update Your Beneficiary Designations and Legal Documents

This step in financial planning is often overlooked, but it’s one of the most important things you can do for your family’s protection. Getting the right paperwork and legal documents in place can dramatically change the outcome of your family should something happen to you and/or your partner. Do you have a guardian appointment for minor children? This ensures that your children—and any assets assigned to them—are in the caring hands of people you trust. Without this documentation, the legal system and probate takes over, which both complicates the process and provides many opportunities for outcomes other than those you prefer.

In addition, it’s important to have both primary and contingent beneficiaries established and up to date with the correct spouse and children information. In the busyness that comes with a growing family, updating documentation is often overlooked. A good financial partner like those of us at Wealth Planning Corporation will remind you to take care of these items as your family, and your financial position, grows and changes.

 

Tip #3: Assess Insurance Coverage Needs for your Home, Property, Auto, Life and Disability

With children often comes bigger homes, larger cars (yes – the minivan!), and other concerns for the future. Examining your insurance coverage needs for your home, property, auto, life, and disability is a critical part of creating a secure and reliable future for your family. Identifying potential gaps and taking the steps to close those gaps should be a process that you revisit every couple of years.

 

No matter where you are in your family’s financial planning process, our team is here to help you. From a quick phone call to our more in-depth annual reviews, we are always here to help you understand your personalized investment approach. Give us a call today to discuss your financial future or to help the next generation begin to build their own wealth planning conversation.

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