Simplifying Financial Planning for Busy Parents
Between managing school pickups, meal preparation, and work emails, financial planning often takes a backseat for busy parents. However, neglecting it can have significant long-term consequences, especially for families with tight schedules and budgets.
The good news is that creating a solid financial plan doesn’t have to be complicated or time-consuming. Here are five straightforward money moves that can help busy parents build wealth without adding more stress to their lives.
1. Start with a Basic Plan
Many parents fall into the trap of “ostriching” — ignoring their finances because they feel overwhelmed, according to Kerry Meath-Sinkin, CFP®, AIF®. “Busy parents often see financial planning as a daunting task, so they naturally put it off,” she explained. However, even small steps can reduce anxiety and build momentum. Begin by reviewing your monthly income and expenses, then set up automatic savings where possible.
2. Don’t Delay Life Insurance
Life insurance is essential, even if it’s not exciting. Many parents mistakenly believe their employer-provided coverage is sufficient, but it often falls short. Term life insurance offers affordable peace of mind, particularly for parents in their 30s and 40s. Experts recommend aiming for coverage that replaces 10 to 15 times your annual income.
3. Balance Savings with Real Life
Saving for the future while managing today’s expenses is challenging. If your employer offers a 401(k) match, prioritize it as it’s essentially free money. Next, build a three- to six-month emergency fund to prevent relying on high-cost credit during unexpected expenses. After securing this fund, focus on paying down high-interest debt and revisit retirement contributions beyond the employer match.
4. Make Estate Planning a Priority
Meath-Sinkin advises against delaying estate planning. “I always find estate planning sneaks to the bottom of a busy parent’s to-do list — even though it’s crucial,” she said. Review beneficiary designations on old accounts and consider legal benefits available through your employer. Without a legal plan, courts may decide who gets guardianship of your children.
5. Regularly Review Your Financial Plan
Even a basic financial plan needs annual check-ins, according to Meath-Sinkin. Review your cash flow, debt, retirement contributions, insurance coverage, and estate documents. Consider conducting a subscription audit to cancel unused services and redirect funds toward savings or debt repayment.
Financial security doesn’t require complex spreadsheets or financial expertise. The key is to start with the time and energy you have, keep it simple, and remain consistent. By following these five money moves, busy parents can build wealth and secure their family’s financial future without added stress.
