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A financial guide for parents

Allen Wastler

Posted on April 11, 2022

Allen Wastler is a former financial journalist with over 30-years of experience, including time at CNBC, CNN, and Knight-Ridder Newspapers.
parents and kids

Once you are a parent, it’s a lifelong endeavor. And the financial needs that accompany it will last — and change — throughout your life too.

After all, as your child grows, so will your obligations to help them with their financial needs. At the same time, you have to be cognizant of your own money demands — especially because your financial security is vital to theirs.

Here is a guide to the financial situations and challenges parents are likely to encounter.

Becoming a parent

Even before the new arrival arrives, there are ways to prepare.

Then, once your child is present, you’ll need to implement changes to your family finances.

Most important, you need to think about protection for your new loved one, especially if something happens to you.

More likely than not, you’ll want college to be an option for your child. The earlier you start planning, the better off you will likely be when the time for college comes.

But being a new parent doesn’t erase your own financial needs. You need to take steps for your own financial security as well.

As your child grows

As your child grows, different needs may develop. Indeed, you may have more than one child or certain circumstances to think about. So, financial planning needs for your family will change.

Protection needs may also get more complex.

There will also be questions about finances when it comes to education and activities.

You will also need to think about ways for your children to develop their own money skills.

And, as any parent knows, there will be issues beyond finances that children may need help with.

As college age approaches, a new level of financial considerations will kick in.

Your child becomes an adult

Many people breathe a sigh of relief at this stage. Still, there are situations and considerations that may need to be addressed.

It’s also the time to start thinking about how your estate will be passed on to your children.

Discover more from MassMutual …

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The information provided is not written or intended as specific tax or legal advice. MassMutual, its employees and representatives are not authorized to give tax or legal advice. You are encouraged to seek advice from your own tax or legal counsel. Opinions expressed by those interviewed are their own and do not necessarily represent the views of Massachusetts Mutual Life Insurance Company.