Raising children requires a lot of things. It requires your time, attention, love, affection, and support. However, being a parent also means possessing the ability to provide for your children as well. From making sure you can put a roof over their heads and keep clothes on their back to affording higher education and being prepared for those unforeseen circumstances and life-changing milestones, it is imperative that your finances are in order.
As most adults struggle to make ends meet, getting a new perspective on how to maximize their earnings and savings efforts can make parenthood a lot easier to cope with. Below, you’ll find a few tidbits on reasons you might turn to a financial planner and how doing so can improve the lives of your family.
Paying your taxes is a requirement and also a tedious task for families. Though there are plenty of tools that allow you to file taxes on your own, many individuals miss out on credits and tax breaks that can increase their savings and benefit their families. A financial advisor can help you with matters that include choosing the right tax status, claiming dependents, and most importantly, ensuring that you’ve taken advantage of every opportunity to increase your refund and/or reduce your tax bill.
When it comes to financially protecting your family, insurance is an ideal investment to consider. Disability, life, and health insurance, for instance, help to cover the cost of things your family may need in the event of an unforeseen circumstance. Though many are aware of this, most purchase policies that provide limited financial protections.
Have you chosen the best health insurance plan to cover medical expenses? Will your life insurance policy cover the cost of final expenses and raising your children after you’re gone? Should you lose your job due to an injury, do you have the right disability coverage to handle the bills while you recover? As there are a lot of policies out there, a financial planner can be instrumental in helping you to choose products that will ensure your family is protected at all costs.
Many of life’s emergencies are directly tied to your finances. A divorce or separation means shifting from a two income household to a single income household. An injury or loss of employment eliminates your ability to earn a living for everyday expenses. Having a cash reserve or nest egg to cover these circumstances can make some of those challenges easier to get through. Yet, the idea of stashing three to six month’s worth of living expenses in a savings account can seem nearly impossible to a family living paycheck to paycheck. A fee only financial planner, therefore, provides a third party opinion on how you can add to your rainy day fund.
Every parent’s hope is that after graduating high school, their children will want to go off to college. As most parents are ill-prepared to take on such a huge financial burden, many have to resort to high-interest student loans to cover the costs. Working with a financial advisor, on the other hand, exposes you to new opportunities to save towards your child’s educational future. From securing the right savings account with the best return of interest to finding room in the budget to increase your savings, there are many strategies a financial expert can help you employ so you limit the need to go further into debt with expensive loans.
Even in your passing, it is imperative to make sure that your children are well taken care of. More than purchasing a life insurance policy, mapping out how your finances should be allocated after you’re gone is crucial. A financial advisor will help with the dividing of assets, paying debts, and ensuring that your funds are used adequately to raise your children.
You want your children to have the best quality of life possible. Although this requires more than money, financial planning is a huge part of securing their present and future. When your finances are in order, raising your children becomes a lot easier as you’re more prepared to handle whatever life throws your way.
This is a featured post by site supporter Anne Davis
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