Living Your Best Financial Life - Married with Kids

By Avery Mills | Aug 2, 2018 6:15:00 AM

Living Your Best Financial Life - Married with KidsAs your family begins to expand, so does your budget and needs. Here are just some of the adjustments and changes that you will need to make for your finances once you begin having a family.

KEEP BUDGETING

Now that you have a kid or two in the mix, your priorities have changed and your budget should reflect these changes. Don’t forget to include items such as leave from work when you have a baby or child care into your planning.

UPDATE INFORMATION

Once you have children, it’s important to make sure that your financial information is updated to include them. This means your adding your kids to your health insurance plan, updating your will & testament to include guardians, and adjusting the beneficiaries of your life insurance.

SAVE FOR THE FUTURE

The earlier you are able to start saving for your child’s education the better. There are several methods of which you can use to start saving. For a Certificate account, the longer of term you set, the higher your interest rate will be. With a Dream Certificate, you can open for as little as $1 and continue to contribute funds throughout the entirety of your saving’s term.

There’s also the option of starting a 529 Plan. These plans are tax-advantaged and you can open one at any time. If your child decides not to attend college, the funds will remain in your name and you can decide what you would like to do with them. However, if they are used for non-education purposes, you will need to pay taxes on them. The account can also be transferred to another beneficiary's education as long as they are a relative. If the child receives a full scholarship, there will be no penalty for using the funds for something else.

Topics: Living Your Best Financial Life, LYBFL

Author: Avery Mills