The Benefits Of Creating A Family Financial Plan
May is National Family Wellness Month. Financial health is an important aspect of overall wellness, and creating a family financial plan can help you and your family achieve your individual and collective goals, prepare for the future, and enjoy the time you spend together with more financial freedom.
The benefits of creating a family financial plan include:
Tracking spending with a family budget
Creating and sticking to a family budget leads to greater savings, which can be used to invest, pay off debt, or plan for future expenses. By taking your long-term and short-term goals into account, your budget can be reviewed and adjusted to meet your family's needs as necessary.
Saving for college and retirement
By planning early for events like college and retirement, you can set up the appropriate investment accounts, learn about loans and financial aid, and review the best options for every situation. Major life changes can be stressful, but that stress will be greatly reduced by sorting out the financial details in advance.
Organizing your estate
It’s never too early to create a will, purchase life insurance, designate beneficiaries and a power of attorney, and take other steps to ensure your estate is in order. Enabling access to important accounts and discussing arrangements with your family can prevent additional difficulty in the event of an emergency.
Improving your children’s financial literacy
Involving your children in financial planning at a young age can teach them positive habits and make the financial issues they’ll face as adults seem less intimidating. Learning how to budget and plan for the future will set them on a path to financial success they can share with their own families.
Creating a family financial plan can have many benefits, including helping your family enjoy the time you spend together, both now and for years to come. Please don’t hesitate to reach out to our team with any questions about creating the right plan for you and yours.