Financial stability is a top priority for most families, but it doesn’t happen accidentally. Parents today face more pressures, whether they are just starting to grow their family or have adult children living back at home. Financial timelines are shifting, and making a solid financial plan for your household is key to keeping your family on track.
Here are seven steps for creating a stable financial plan for your household:
1. Build an Emergency Fund
You never know when an emergency will happen, whether a flat tire or a broken A/C unit. A common rule of thumb is to save at least three months of your monthly income and a little extra for accidents. When you need emergency cash, breaking the piggy bank will be one less worry.
2. Pay Down Your Mortgage
Chances are, you don’t want to be paying off your mortgage in your twilight years. Set a realistic timeframe for paying off your mortgage so you can enjoy retirement without the lingering debt of a mortgage payment. Many of our mortgage options include features to help you pay your balance quickly and efficiently, such as:
- Prepay up to 20% of the original mortgage balance on the anniversary date
- Increase your payment amount by up to 20% each year on the anniversary date
- Double up the regularly scheduled payment amount
3. Invest in Education
Save for your child’s post-secondary education with an RESP from WFCU Credit Union and its divisions. An RESP is a government-approved investment vehicle in which income earned under the plan is not taxed until it’s withdrawn. Beneficiaries may also be eligible for related government benefits.
4. Establish a Fun Budget
What about that Caribbean vacation or new outdoor patio set? Make it work! Setting a financial goal for mood-lifting purposes is a great way to avoid impulse buying or overspending.
5. Plan for Retirement
It’s never too early to plan for retirement, even in the early stages of your working life. Retirement planning can ensure your comfort later in life, easing stress for you and your caretakers, who might be family members. Our team of skilled representatives are here to help you maximize your RRSP contributions regardless of where you are on your financial journey.
6. Check In Often
As life situations arise, it is recommended that you review your household’s changing needs and financial plan, allowing you to adjust your financial plan as required. Healthy financial conversations as a family can provide learning opportunities and help introduce positive patterns with the ones you love.
7. Start at Home
Becoming more comfortable with conversations involving finances at home is a key contributing factor to long–term financial success. Starting early, setting goals, and celebrating successes help pave the road for lifelong financial freedom.
Our experts at WFCU Credit Union and its divisions are here to help you overcome the barriers to your family’s financial freedom – it’s never too early or too late to start! Contact us if you’re looking to improve your financial literacy and experience what freedom truly looks like.
Chris Cooper
Member Consultant,
Tecumseh Branch
Nicole Ferguson
Personal Account Manager
Kingston Branch
