6 Must-Follow Financial Planning Tips for Parents

If you’re a parent, you know the love for your child is like nothing else in the entire world. You take all the essential measures to keep your kids safe, clothed, fed, and happy. But are you dropping the ball when it comes to the financial side of being a parent?

Join us for today’s episode as we share the six financial planning items you should definitely address to help ensure your child’s financial security.

Here is what we cover in today’s episode:

• The six financial planning opportunities for parents:
  1. Draft a will and plan for guardianship: This is absolutely the first thing you have to do even if it’s uncomfortable.
  2. Button down your insurance coverage:
     • life insurance (10x your current income, plus your remaining mortgage balance and education funding goals)
     • disability insurance (60% of your current income)
     • umbrella insurance (roughly equal to your net worth)
     • health insurance (make sure your deductibles make sense)
  3. Prioritize building your financial independence first: You need to make sure you’re on a solid financial footing so that you can help your kids do the same.
  4. Teach the value of a dollar: You want to encourage a good work ethic, defer a portion of their earnings for their future, and how to be generous
  5. Help fund education goals: This depends on what you feel is your obligation to fund your child’s education
  6. Bring your kids into the discussion about your finances: The biggest mistake we see parents make is when you don’t talk to your adult children about your finances and wishes as you age

If you observe these six major financial planning items, you can help your children establish a strong financial foundation that only matures as they grow.

Resources Mentioned in this Episode & Related Episodes

• Financial Order of Operations: How to Prioritize Your Financial Goals (Money Guy Show)

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