3 Moves To Help You Plan For The Financial Future Of Your Family

With a rising number of parents becoming stay-at-home parents, and more focus on family in general, many families will be thinking about financial security. While financial security as a family, today, tomorrow and in the future is the greatest concern, and many parents explore income streams at home to improve their family’s financial situation, parents should also be planning for their children’s future after they’re gone. While it is difficult to imagine and plan for a time when you will not be there for your children, being proactive now and taking steps to ensure they are protected when the time comes can drastically reduce the transition for them, and any other family members affected. Whether you are making plans for your estate’s future or your child’s educational future, here are three smart moves every parent can make to invest in the future of their family.

1. Draft A Will

Every parent should have a documented plan of their estate and end-of-life wishes. Sadly, only 30 percent of parents have a will, and many families do not openly discuss their estate planning. However, creating a will is now easier and more accessible than ever with online estate planning platforms and DIY planning options, if you want to minimize the costs. Parents should be careful, however, to avoid common DIY planning mistakes like the omission of specific legal requirements or invalidated witnessing, and should think carefully before taking the DIY route.

Without the presence of a will, the law stipulates a few different outcomes according to the relationship between heirs and the deceased. For instance, your spouse will inherit 50 percent of any real estate and 100 percent of any non-real estate. Children of the deceased are then given the remaining 50 percent of real estate but 0 percent of any non-real estate, including pensions, bank accounts, or motor vehicles.

2. Secure Yourself A Great Insurance Policy

Most people think the point of getting an insurance policy is to replace the income lost if you get critically ill or pass away. For many, it is a way of ensuring financial security for their children after they are gone. However, not many stay-at-home parents think it is worthwhile securing life insurance for themselves if they are not earning parents. Yet losing a parent can wreak havoc on a child’s life – both financially and emotionally.

When deciding on insurance coverage for yourself, think of your family’s income and dynamics. How many children do you have? More children mean more financial consideration must be given to their needs – more money for schools, childcare, and general costs of raising a child. Ideally, you want to ensure that your partner can focus on your children instead of grappling with finances. If you want to ensure that your child benefits directly from your life insurance policy, you can consider putting your life insurance in a trust for them to inherit.

3. Invest In Teaching Your Children Key Life Lessons

Preparing your children for a future – with or without you – does not only center around financial preparations. As a parent, it is also important that you teach your children critical life lessons that will set them up to live an independent life. Regardless of their age, every child should learn life skills such as problem-solving, basic financial planning/money management, and basic household chores. The key to this is to incorporate these lessons into everyday activities to make them enjoyable for both you and your child. For instance, shopping for ingredients and baking a cake together can be a great activity to help your child learn about budgeting and cooking skills.

Planning for the future of your family is always a good idea. As mothers, we spend hours planning for our family’s weekly meals, after-school activities, or finding fun crafting activities to occupy the kids during school holidays. So why not plan for when you are no longer around too? Difficult as it may be, taking small steps now can help you avoid many issues further down the road.