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The Maternity Project: Part 4

What Is Family Financial Planning?

Quick Jump

  1. Why do I Need Financial Planning?
  2. The Four Key Aspects Of Family Financial Planning You Need To Know
  3. MoneyGrowth Partnership x Free Family Financial Planning Consultation

1. Why Do I Need Family Financial Planning?

You are no longer alone. In your journey from a single carefree adult to a family person, you will experience many changes. But perhaps, the biggest change of all is having a child. With a new-born son or daughter, you have a new set of responsibilities and you must now plan your life journey with another in mind.

There are so many aspects to consider when it comes to family finances and it can get overwhelming. When done right, family financial planning can ease and smoothen your transition from being single to a family person. It is also crucial for people who already have a family and want to secure their future.

2. The Four Key Aspects Of Family Financial Planning You Need To Know

i) Adequate Insurance Coverage

Getting adequate and suitable insurance cover is an integral part of financial planning. Insurance policies provide the required security net to you and your family and help you to deal with unfortunate events. You should have adequate insurance that cover your life, assets, and health.
If you do not have adequate insurance coverage, you and your loved ones could be denied the required healthcare when the need arises, or worst still, you could be forced into debt.
If your company provides you with health insurance, check and assess if the cover is adequate. If not, ensure that you have additional health insurance coverage.

II) Retirement

Having a child means having to support them till they are old enough to start working and earning money for themselves. In Singapore, we usually estimate that to be around 25 years old. So if you are 35 and just had your newborn, you can estimate your retirement age to be 60 years old since you have to provide for your newborn for the next 25 years.
The earlier you start planning for retirement, the better you can take advantage of compound interest to build your wealth and your retirement fund. The longer your money is invested, the more time it has to grow and when it comes to compounding returns, time is your advantage.
You can start by exploring the various financial and insurance instruments while taking into account the risks involved. With careful planning, you could possibly retire at an earlier age.

III) Your Child's Education

The bulk of the costs required to raise your child occur in the later years, in the form of children’s tertiary education expenses.
Since it is 18 years away (assuming your child is a newborn), we need to account for inflation when calculating your estimated education expenses.
Various factors also come into play here such as private or public institution, field of study, length of study and country etc.

For example, if you would like to provide your child the option of pursuing further education in a private institution in a foreign country, it will be inherently more expensive than studying locally in a public institution.

Likewise, to plan for this fund, since it is 18 years away, you should take advantage of compound interest and invest early.

The longer your money is invested, the more time it has to grow. When it comes to compounding returns, time is your advantage.

IV) Estate Planning

Inevitably, we will pass on one day and when that day comes, you will want your money and your assets (your estate) that you have worked so hard for, to be distributed to the people and causes that you care about and to receive what you want to give them.
But without having a proper estate plan in place, your estate will be distributed according to intestacy laws and there could be delay in settlement (higher legal costs), uncertainty in guardianship and other unintended consequences such as unhappiness and disputes over your estate. In other words, without proper estate planning, your intended beneficiaries may actually benefit last instead of first.
All this can be avoided if you incorporated estate planning as part of your family financial planning.

The Maternity Project

MoneyGrowth Partnership

Free Family Financial Planning Consultation

Financial planning can help you to plan for retirement, buy your home, ensure your kids’ education through the right combination of savings and investment and prepare for unfortunate circumstances with appropriate insurance cover.

Here at Moneygrowth.sg, we believe that everyone should have access to good financial planning advice.

By planning your finances in a disciplined manner, you can better manage your money to achieve your financial goals.

We have identified and partnered with family financial planning experts that are able to assist you in planning for your family’s future.

This is what you can expect when you meet up with one of our community family financial planning experts:

1.

Learn what family financial planning entails and how to avoid the common and potentially costly mistakes people make when they plan their family finances.

2.

Learn about the different types of insurance plans and which ones are most applicable to you.

3.

Learn how to apply for and maximize your government schemes, subsidies and gifts that you are entitled to.

4.

Learn about estate planning, how it affects the planning of your family finances and what you need to do.

Schedule A Consultation

Click on the button below to find out more and arrange a non-obligatory consultation with one of our family financial planning experts.

Continue Reading: The Maternity Project

Part 1

Are You Mentally & Financially Prepared For Parenthood?

Part 2

Do you know what subsidies/Grants/Aids you are eligible for? 

Part 3

Are You Ready To Deal With The Unexpected?