Learning financial planning at a young age is essential to ensure you achieve your aims in life. The ability to manage money can make a radical difference regarding whether you have disposable income available to take on new challenges, or not! Family financial planning is not always a straight forward affair but it is something that every family should undertake. It is also something that should be discussed with children as they mature to ensure they have the right attitude towards money later in life. It is advisable to enlist the help of a professional firm when seeking to establish your family financial planning. Richard Brothers Financial Advisors is one firm that offers extensive knowledge, experience and an array of tools to ensure you make the right decisions for your future.
This is complicated by the fact the traditional family is no longer the norm; one mum, one dad and two children is no longer a standard mold which can be used to create a financial plan for every family. There are now single parent families, same sex parents and even complicated extended families resulting from multiple divorces.
The traditional goals of retirement and college costs are still very much in existence. However, these costs are sometimes more difficult to cover or define as the responsibility for these can be shared with several different sets of parents. Alongside this there are considerable complications that can arise from these family set-ups. Step parents and step children can be entitled to different levels of care if one person dies. This can lead to resentment; particularly if many of the upkeep and costs associated with children are borne by a step parent who has little say in their upbringing.
There is no doubt that family financial planning is essential, difficult and stressful. To make it as easy as possible you must follow these principles:
Communication
It is essential for there to be a high level of communication between all the different parts of the family. Everyone who is involved with the upbringing of the children should be aware of the costs involved and who is currently paying for them. They should also be aware of the financial commitments you already have and why it is necessary for them to contribute. The open communication channels will help everyone to know where they stand and what is expected of them. It can also help to ensure all members of the family work together to ensure common goals are met.
Budgeting
Once the lines of communication have been opened and all matters discussed it should be a relatively easy process to list all incoming and out goings; effectively creating a budget and allowing you to raise sufficient funds for your longer term goals. As well as creating this plan you will be able to record it electronically or on paper and ensure everyone involved as a copy of the plan.
Informing Others
Finally it is essential to make sure all legal documents are drawn up now, including wills. This will ensure everyone knows what will happen if someone dies and will help to alleviate any feelings of resentment.
