As a father, you have a lot of demands on your time. You work, help out around the house, take an active role in your children’s lives, and aim to be a supportive spouse. Another big part of leading a family is practicing wise financial management. You earn a living and want to make the best choices when it comes to how to spend, invest, and save your income.
The good news is a sound financial strategy is a lot like parenting — it involves anticipating needs and preparing for what the future may bring. If you want to make sure you’re doing right by your kids, read on as we break down how to make sound financial moves for your family.
Start an Emergency Fund
No one, especially a dad responsible for the well-being of his family, likes to feel underprepared.
But that’s precisely how 4 in 10 Americans would feel if they were faced with an emergency expense such as a $1,000 medical or car repair bill. Borrowing money in the form of a personal loan or high-interest credit card can often mean families are forced to turn to “high-cost” solutions to cover these sudden expenses.
And adding debt to your family’s financial picture is something you obviously want to avoid.
So, the better financial decision is to start saving now for a rainy-day fund. Begin with a small, achievable goal such as saving $1,000, so you don’t become a statistic. Then, once you reach your initial savings goal, set your sights on socking away at least three to six months’ worth of expenses as a safety net for your family.
Save for Your Kids’ Education Expenses
Get this — according to the most recently released data, a family will spend close to $13,000 a year to raise a child. And keep in mind, these figures do not include the cost of a college education.
So, one of the best long-term financial decisions you can make is to start saving for your children’s future education today.
Even if money is tight, given the gift of compound interest, you can make a significant impact by saving as little as 10 bucks a week to start with. Other options include opening a 529 college savings account and asking grandparents or aunts and uncles to contribute to that in lieu of birthday or holiday gifts each year.
These plans come with tax benefits and can be used for K-12 tuition as well as college.
Weigh Your Options for Insurance Coverage
When it comes to the overall health of your family’s finances, it can be the everyday savings on things like health or auto insurance that add up in a big way over time.
Consider making the switch to USAA auto insurance to start saving sooner. The company’s policies take families like yours into account with money-saving discounts given for good students, safe drivers, length of membership, and multi-vehicle usage.
Plus, USAA makes it easy to pay your bill each month with its flexible payment plans. Finding the best auto insurance coverage can help you keep your family safe while saving you some serious cash.
Become Their Financial Superhero
As a father, you want your kids to see you always have their best interests at heart.
Implementing a sound financial game plan for your family is one of the best ways you can make your loved ones feel secure and provided for. Take the time to not only teach your kids why saving money is important but show them how it can be done.