Your Life is Changing – So Should Your Financial Goals
A lot is changing in your life: having kids, advancing in your career, possibly even relocating. With each personal change comes a shift in your financial goals and expectations as well. Here are 3 common situations you may encounter, along with some helpful tips for how to handle them.
1. A Growing Family
Whether preparing for your first child or planning for more, having children will heavily influence your financial goals. In fact, a 2015 Care.com survey found that 28% of parents spend more than $20,000 on child care alone per year. 1 It’s important to have flexible financial goals that can accommodate a growing family.
2. College Funds
Paying for college is often a parent’s biggest financial concern – but a head start can make all the difference. NerdWallet suggests setting aside $50 each month after your child is born, which (with a 7% return) would net you $21,000 by the time they turn 18. 2 A 529 savings plan may also be a wise option, as it can offer tax benefits that help you save even more for your child’s future education.
3. A Second Home
We all dream of owning a second home, whether for vacation stays or just to be closer to our family. Of course, it’s a big financial commitment – you’ll have a second mortgage, along with all of the regular expenses associated with being a homeowner. Our “What will it take to become a millionaire?” calculator 3 can help you see how long it will take to build up a solid nest egg that can help offset these costs. Take a look and see what kind of shape you’re in to reach your future goals.
This article is not an endorsement of any particular product, service or organization; nor is it intended to provide financial, tax or legal advice. It is intended to promote awareness and is for educational purposes only.
1 Source: Care.com. Parents Willing to Pay More for Quality Child Care Despite Already High Costs. July 29, 2015.
2 Source: NerdWallet. When Should You Start Saving for College? Anisha Sekar. January 9, 2014.
3 Source: John Hancock Investments. What Will it Take to Become a Millionaire? Calculator