Family planning covers a wide range of needs, from birth control to pregnancy care coverage to infertility treatment. Learn more about what family planning benefits your health insurance may cover as well as how to financially plan for a family.
Deciding to become a parent is one of the most exciting decisions you’ll ever make. It’s also one of the biggest financial decisions you’ll ever make. The good news is that there’s a way to create a secure financial future for your growing family.
Family financial planning helps you make smarter decisions with your finances. It’s a strategic roadmap that gives you peace of mind for the future, whether you’re having a baby, adopting, or combining families. Best of all, financial family planning is a relatively simple process. While some people may prefer to enlist the help of a financial expert, it’s by no means necessary. Once you understand the concepts of financial planning—and we’ve got you covered there— you can create your own plan yourself.
Ready to lay the groundwork of a solid financial foundation for your family? Here’s everything you need to know about how family financial planning works.
Even after you’ve created a budget, cut expenses, eliminated debt, and begun saving for retirement, there’s still one more step in your family’s financial plan—obtaining insurance.
Accidents and disasters are a natural part of life, and if you lack adequate insurance, the results could be financially devastating. Having a solid life insurance plan can provide reassurance and financial protection, should anything happen to you or your spouse/partner. Not sure which kind of life insurance you need?
Term life insurance covers you for a set period, while permanent insurance covers you for life, (with some policies offering the benefit of cash value accumulation). There is, however, an important distinction between the two. Permanent life insurance can be more expensive than term life insurance.
Because every family budget is different, it’s important to consider which one will best suit your family’s needs and goals. Regardless of which one you choose, when it comes to ensuring solid financial footing for your family, insurance is one of the most important aspects to consider.
Choosing health coverage can be complicated—but we’re here to make that process as quick and simple as possible. We offer the best possible coverage rates to help your family stay safe and healthy—while also saving money for your future. Get an immediate online insurance quote and enjoy the peace of mind that your health care coverage is affordable and comprehensive.
A family financial plan gives you a comprehensive picture of your current finances, your financial goals and the steps you’ll need to achieve those goals. It starts with the basics—setting up a budget, paying off debt, and setting aside money for college—but it can also include things like investing for retirement and understanding your insurance options for becoming a parent. By helping you determine your money-related goals and creating a plan to meet each one, this long-term strategy helps put your family on a path to financial confidence.
The cost of raising a child isn’t exactly cheap—and that number only multiplies each time you add to your family. That’s why it’s never too early to get a head start. The first step in family financial planning is to think about what goals you want to achieve with your money (both long-term and short-term). For example:
Long term goals:
Short- or mid-term goals:
When you’re setting your family’s financial goals, it’s important to keep them specific and realistic. Create a deadline for achieving each goal, as well as the smaller steps you’ll need to take to reach each one on time.
A budget is the most basic building block of any family financial plan, because it gives you a clear picture of exactly where your money is going each month.
Once you’ve established rules for how to spend and save your money, you can avoid overspending and use what you’ve saved to pay off debt, create college and emergency funds, or save toward retirement or other financial goals. By tracking your spending, you’ll know exactly how your money is performing each month. This makes budgeting the best way to ensure you can save enough to meet your goals. Here’s how to get started on creating your own budget:
Revisit your monthly budget each month to see if you can make adjustments as needed. You’ll also want to do an annual review of your budget to see how your spending and saving has changed each year. This will serve as a helpful guide for creating your next year’s budget.
Whether it’s for credit cards, loans, or a mortgage, eliminating your debt becomes even more difficult when you’re facing high interest rates. That’s why you need a plan and a timeline for repaying those debts as soon as possible. Otherwise, the interest you pay on this could eliminate any interest gained from your savings (or growth from your investments).
One of the most important steps of relieving your debt is to pay more than the minimum amount due each month. Why? With interest and finance charges, even credit cards with the lowest credit line can take years to pay off if you only pay the minimum balance. And those extraneous fees could rack up thousands of dollars that could be better used towards savings.
To speed up the timeline toward becoming debt-free, consider some of the ways that will help you accelerate the payoff. Some examples include:
Retirement may feel like light years away, but saving for it is a critical step in your family’s financial plan. Failing to contribute to your retirement fund can cost you in the long run, since it means missing out on the power of compound interest.
Thankfully, the IRS offers tax-advantaged accounts such as employer 401(k) plans, individual retirement accounts (IRAs), and special retirement accounts for the self-employed. These types of accounts making saving easier by allowing for tax reductions, credits, and even tax-free earnings on some retirement savings.