Financial Wisdom for a Healthy Family
Financial stress can be a major source of stress in any family. With medical expenses, groceries, school supplies, and general household bills, paying for everything can become an overwhelming burden. However, if families make smart choices with their spending, saving, and insurance, they can provide a secure life for their family’s present and future. Here are some easy ways families can save money, spend wisely, and get the most out of their insurance agency.
Nurture Your Nest Egg
One of the first steps any family should take is to acquire a nest egg. According to a recent survey by Bankrate, 40% of Americans have not even started a nest egg. While this number is surprising, you do not have to be part of it. Some simple ways to set up your own nest egg include creating an automatic deposit from your checking to savings each month as well as allocating your tax return money to your savings account. You can also put away 10 to 15% of your income, before taxes, at the end of each year.
You may also find it helpful to have several different accounts, especially if you have children. If you and your spouse want to save for retirement, consider creating a joint account for you to pool your savings into. If your children need money for their future education, let each child have their own account that you can deposit money in. The key with your children’s bank account is to not let them have access until they need it for college tuition or class books.
Another must for any family looking to secure their financial situation is to purchase insurance. When looking for the best insurance agency for your family, take your time and do not jump at the first advertisement you see. By researching agencies, making a list of what you need protection from and setting a limit as to how much you want to spend on premiums, your family will be well protected from any unforeseen accidents that may occur.
When shopping for insurance, some of the best policies to buy include:
Life insurance is especially important as it can be used to pay for the remaining balance of a mortgage or used for end of life expenses such as cremation and a funeral service. These payments are very helpful if someone in your family dies unexpectedly. It can also be used to replace an income if a spouse passes away or suddenly loses a job.
Be Smart When Spending
As a mother or father, you know how easily the expenses for your child add up. From their diapers to clothes to birthday gifts and schooling, it is a lot to manage. However, if you and your family can set a budget and stick to it, you will be on your way to secure finances and less stress over money. One of the most important tasks you can do is pay off credit cards. Once this debt is gone, you can put more money into savings or begin paying off another debt. Other tricks to healthy family finances include:
- Creating a monthly expense list
- Paying with cash
- Use reusable items like washcloths and aluminum water bottles
If you are ready to get your family into a secure financial situation, you can start today. Begin your search for the best insurance agency, set up an extra savings account and start looking for small ways to stretch your dollar. A financially set family is a great way to keep your family safe and healthy.
Heather Hollands says
Good advice! I have a daughter starting college this month, and believe me it is important to use some financial wisdom.
Diana So says
Great tips! I already put a percentage of my checks into my savings account. It’s always nice to read for advice and tips. I definitely don’t want to be in debt forever.
Superb advice. It’s so hard to get into new habits though.
I haven’t thought much about insurance as part of saving money; but now as a parent, it does seem more important to make sure if anything happens, the little one is taken care of. This article is a good reminder of that.
And agreed about using reusables to save money. Its also way better for the environment!
Sue M. says
Great ideas; I make sure I had a a good renter’s insurance policy when I purchased it; it really is worth it.
Lisa Ward says
Great Advice, renters insurance is a must.. insurance advice great to know..
Diana Turrieta says
Superb advice. It’s so hard to get into new habits though.
Kristin K says
Great tips! I wish I had the discipline and financial resources to start a nest egg! I currently live on a fixed income, and need every dime to just survive! At least I only have myself to take care of.
These are great financial tips for a healthy family. I like the idea of having more than one account. Thank you for sharing this post, very helpful.
Deborah Caudill says
Thanks for your article on finances for a healthy family. I had a 401K but was laid off of work and then had to go on disability. My 401K and savings were wiped out by the time I was 60,and now I have to live on Social Security. It is very difficult to make mortgage payments and pay other bills with just disability payments. Everyone should be frugal when they are young and save for their retirement years. They might just be able to travel and do the things they have always wanted to do when they get to retire earlier than most.
Jerry Marquardt says
I appreciate the really nice tips and pointers that you give us to help out in keeping us on track. Your advice is most appreciated by your followers.
Heather Strand says
Thank you for the great advice. I think I’ll try paying with cash for a change :).
Kristin K says
Instead of paying into an insurance policy, I’d rather put that money aside, to have for my nest egg!!
john hutchens says
These are all great tips. I was surprised how much I truly saved when I purchased things with cash. It was an eye opener.
Doug W says
Couponing is our big thing. Not extreme couponing, but reasonable. Regardless of what store you shop at, there’s a blogger out there who matches up the weekly sale with available coupons.
Sandy Weinstein says
i was always a saver even when i was young, my parents used to make fun of me b/c i put everything in my savings act, of course i was able to pay for 1/2 of my first car when i was 20, it was a new car. my older siblings never saved, but then again, my dad had money then and they were spoiled rotten and never had to work until they got out of college, which he paid for as well.
Good advice. I’ve been thinking about this and looks like I should do it.
molli vandehey says
this is some great advice. never too late!
Charlotte Raynor says
I try to save and put money back every month, but it is really difficult. I”m on a fixed income anyway, and the money I get for disability doesn’t go very far. Thanks for your tips!
Sue M. says
These are all excellent suggestions; I’m big on using coupons and taking advantage of grocery store rewards programs. I also will only buy items I’ll actually use, not just because I have a coupon for it or because it’s on sale. Thanks for posting!
Ann S says
Great tips. I’m an impulse shopper so carrying cash would definitely help with that.
Kristin K says
All of this is great advice on how to build a nest egg! I know my sister and her husband have a nest egg for their two children, as well as RESP’s for both! I, myself, do not have a family to support, but could still use a nest egg!!
Yes… I must do this. I always feel like I’m playing catch-up financially.. I need to get ahead!
Tina Truex says
Great advice thank you for sharing. I like the idea of having more than one account.
Tina Eiser says
Great advice, I have been building a nest egg for years now and getting much better at living without things that I do not need and only want! I use coupons whenever possible and I have lowered my expenses in the past few years.
sharon shafran says
with financial planning you have to always be on top of things never let it go by too long
Wonderful advise, as an almost graduate from college this will be incredibly helpful for me
Deanne Patterson says
Very good advice. I knew a lot of these but it’s always an eye opener when you get a refresher with these tips.
Sonya Cocherell says
When Michael and I married, we decided to put away a good part of our paychecks each month beyond our retirements, iRA, etc.
Viet Nguyen says
good tips! thanks
Susan Highland says
I wish I had this advice when young. Luckily my second husband did all of the above and we are sitting pretty. I wish all young people had access to this!
I think the first step in looking at spending and trying to create a budget is a hard but really helpful step. Sometimes just becoming aware of spending habits is helpful.
Ronald Gagnon says
Excellent advice. It’s not so hard to get into new habits though, because we come from the old school and do them all
Brigid OHara Koshko says
Great information! We threw out our credit cards a few years ago and pay cash for everything. A huge help each month not having to pay those bills and it shows our kids the importance of saving and earning what you want. Thanks!
saegan anderson says
thanks for all the tips. this really helps bc i am living on a budget
saegan anderson says
i’m 24 and i just started saving for retirement last year…i hope i can retire before age 70 but in this economy we’ll see
Dorothy Boucher says
We try to put away as much as we can, but its so hard when you have eight grandchildren , Someone is always
in need of something. I know we have a little saved, hopefully that will be enough but what will ever be enough,
we don’t know how in ten or twenty years going to look, all we can do is hope.
Amber Ludwig says
Awesome tips!! Now if only I could convince my hubby to do them!! I think he’s so used to spending frivolously and now we are really struggling to save for a house!! It turns into arguments and fights all the time!!
Holden Humphreys says
Nothing extraordinary here, just the same good advice your grandparents would give. Unfortunately those that need to read it probably won’t.
Edith Reardon says
Not sure they are including your home as a financial investment for your next egg. Term life insurance is the best way to go for younger families. The payments are smaller and gradually increase with age. You can use the money you don’t spend on it to invest in other sources. I urge you to invest in a home as part of your nest egg as shelter (rent, etc) is always going up. Cheaper to live in your own home when you are a senior than going into an old age home. Do you really need that new car? Buy a car that is 2 or more years older the savings are just unbelieveable. After housing and transportation is your food bill. Put in as many gardening plants for extra savings even on a balcony. A little more work but you save $$. After food comes clothing. Don’t sew take a couple of courses at your local college. We are very good with our credit cards and they are paid off every month. We got a card that gives us several bonuses, almost free air travel, rental car insurance, doubles the manufacturer’s warranties without buying extra warranty plans. Costs us $80 a year but saves us hundreds every year. We are finally able to afford to fly places and car rentals are cheap.
KATE SARSFIELD says
I’m on a disability allowance from the Irish Government following an accident. It amounts to 188 euro a week. I’ve just got back from buying petrol, catfood, toilet roll and some food (human) for the weekend. The bill? 94 euro, and that’s without putting anything towards utilities, my car insurance (due next week) etc.
Very good advice! I wish I would have taken life insurance more seriously when my kids were little. I am 47and at 41 was diagnosed with a congenital heart defect resulting in an open heart surgery and now heart failure, because diagnosed so late in my life. I am now ineligible for life insurance. If you can get it I think it is a really good thing to have before it is too late.
Teni SinLa says
Thanks for the benefit tips,…. Althoug im not married yet but i agreed with your idea. It would be my reference for my future,… once again thank you!
Christina Moore says
Thank you for all the good advice,