Does the Cost of Kids Grow as They Do?
Now that the family is on a fairly predictable path with respect to school, work and home it’s a good time to plan for the next stage. A few things to think about in Part 4 of Financial Planning for Kids:
1. Is the family budget stable? Have you got enough allocated for clothes & sports?
2. Do your kids know about the household budget and are they aware of how expenses relating to them impact the budget?
3. Do you give your kids an allowance? Do they have a job? Do they understand the value of money?
4. Do you have a financial plan for their education and your future?
It’s easy to lose sight of the big picture when the daily routine is front and center. It can also be challenging to focus on goals that seem so far in the future. And let’s not forget how tiring it is just to get through the week. A small investment of your time now can mean huge gains in the future for you and your family. Set small and manageable goals over the next month or two and before you know it you’ll have designed the plan. Include your partner as well as your children (if appropriate).
1. Gather the information you need
2. Jot down your goals and prioritize them
3. Review your current budget
4. Size your goals and determine how much you need to set aside monthly or annually to achieve them
5. Determine how you will fit this into your budget
6. Set up the savings plan(s)