Being financially smart is the key for building generational wealth! Check out these 6 Easy Financial Basics For New Parents!
There is something about being an “older” mom that makes you really start to think about how to properly manage your financial future for you and your family. When your kids are young, you want them to learn the value of proper preparation, and you also want to make sure that they are taken care of for the future. IT’S A LOT OF PRESSURE!
But don’t worry, I’ve got some really good tips today from Northwestern Mutual, and they helped ME feel more prepared and at ease. I hope they do the same for you! I asked Northwestern Mutual wealth management advisor Francis Clement about the most important things I can do to make my myself and my children financially confident. Here are some of the things I learned!
What financially smart decisions can new parents make?
1. Create a financial plan or update the one you already have to account for your growing family. Take the time to make sure you have enough life insurance, long-term disability and savings.
2. Prioritize having a retirement account.
3. Designate a secondary provision in a will as well as named caregivers. Where do you want your
children to be if you are no longer here? Speak to your spouse and make sure that you are
leaving them in the right hands. It could be a financial burden on whoever will be taking care of
4. Remember to get a will for the guardian who can be in charge of the assets you leave for them. It could be easy to leave the children with selected family members, but remember your family
members may not be the best people that can handle the money. Choose wisely.
5. Put the money in a trust so that they abide by your wishes and the account can be dispersed
annually. That can be the benefits of proper planning. For example: The caregivers could decide
to use a large share of the money to take a luxurious vacation to Disney World but not invest in
the children’s education. Planning gives you peace of mind.
6. Think about possible long-term care for yourself so your kids don’t have to worry about it. The
older you get the more expensive this becomes.
How can parents start to teach their children from a young age about financial basics?
The value of saving is the biggest lesson you can teach them; it’s one life’s biggest learning curves. With a pink piggy bank, your child can hear the money jingle inside. Setting the example is key.
One important thing to remember:
Do yourself a favor and sit down with an advisor. Let him or her help you implement goals. People do best with not only a plan but also a planner that can help them implement all of the parts of the plan–someone who checks in and is invested in your long-term financial health.Being financially smart is the key for building generational wealth! Check out these 6 Easy Financial Tips For New Parents from @NMFinancial! #ad #finance #parenting