As a young married couple is starting a family, the present can be a remarkably busy time. Thus, couples in this situation might be tempted to leave planning for the future as something to handle at a later date.
However, the actions a young family takes just as it is starting out when it comes to matters like finances can actually have very big implications for the future. It could impact what sorts of funds a couple is ultimately able to build up to help with things like:
- Handing future expenses for the kids (including college expenses).
- Achieving their goals, financial and otherwise, for the future.
- Their future retirement.
So, planning for the future, including taking steps to help build up wealth to put toward their goals, can be a critical step for a young family to take. Examples of wealth-building steps young married couples can take include:
- Thinking carefully about what financial steps will need to be taken to achieve their goals.
- Communicating with each other about finances.
- Coordinating their overall financial strategy.
- Prioritizing saving.
- Prioritizing paying off high-interest debt.
- Exercising care when it comes to big expenses.
- Learning what financial benefits and options being married gives them access to.
- Learning what devices for saving for the kids’ future college expenses are available.
In addition to making preparations aimed at helping with their goals for the future, another thing it can be very important for a young family to make plans for is if the future doesn’t go the way they expect. For one, it can be important for a young married person who is just starting a family to think about what they would want to have happen with their family and the wealth they build up in the future if they end up with an unexpected incapacitating medical condition or their life gets cut short by a tragic accident or medical event.
So, among the things a person may want to do as they are starting a family are talk with an estate planning attorney about their goals and work with such an attorney to form a will and other estate planning mechanisms aimed at carrying out their wishes and helping protect their family in the event of the unexpected.
Source: U.S. News & World Report, “10 Tips for Couples and Young Families to Build Wealth,” Christine Giordano, July 25, 2016