Are you a new parent who sometimes stresses out over the big-ticket expenses in your future? If so, then you are not alone. It’s normal for moms and dads to worry whether they’ll be able to deal with huge financial obligations associated with a child’s college education, a wedding, a first home purchase, exotic vacations, retirement savings accounts, and more. All those things are among the priciest items in a working person’s life, so it’s no wonder parents lose a bit of sleep from time to time.
On the bright side, it’s a fact that nearly every mother and father figure out a way to tackle those costs without having to take on two full-time jobs or lose their minds in the process. The secret, if there is one, is utilizing financial tips for growing families and practicing financial discipline, usually in the form of making a detailed budget and sticking to it through the years. But, there’s more to the equation than that. The following details explain how to finance the most important events your family will ever face.
College Education
Families rely on a wide range of resources to help cover the cost of their children’s education. Getting a four-year degree is a major academic challenge for young adults, but paying the bill is another matter altogether. Fortunately, there are thousands of different scholarships available for applicants who are persistent and know how to work the system. The goal for moms and dads is to use scholarship search services to help secure as much money as possible via a platform from which kids can find and apply for scholarship money at the same time. Note that the most common scenario is one in which a future student obtains several fund distributions that collectively pay for either their entire schooling expense or a portion of it.
Weddings
Contrary to the tradition in which the woman’s family pays for the wedding, modern couples tend to share the costs. Even so, with the average cost of a typical celebration reaching tens of thousands of dollars, it’s common for parents to borrow at least a portion of the total in order to help cover the total costs. A common method nowadays is for couples and both sets of parents to chip in about one-third each to pay for all wedding-related costs.
Houses
The largest lifetime expense for the majority of adults, a home can take 30 years or more to pay for. Most families use mortgage loans, special obligations that use the house as collateral, to pay for their first or second home.
Major Vacations
While some couples borrow to go on big vacations, it’s becoming more common for people to set up special savings accounts for a specific purpose. Ten-year plans are one of the smartest ways to cover the bills associated with a unique, once-in-a-lifetime trip to a distant location, faraway island paradise, or exotic locale.
Retirement Funds
There are dozens of ways to fund retirement accounts. The most frequently used method is for families to make annual deposits into IRAs (individual retirement arrangements) or 401(k) accounts. There are limits on how much you can add to these accounts each year, so it’s best to aim for the maximum in order to build a substantial reserve.
