{"id":2672,"date":"2025-11-18T08:36:00","date_gmt":"2025-11-18T14:36:00","guid":{"rendered":"https:\/\/www.discover.com\/online-banking\/banking-topics\/?p=2672"},"modified":"2026-02-02T12:00:52","modified_gmt":"2026-02-02T18:00:52","slug":"3-life-events-family-financial-planning","status":"publish","type":"post","link":"https:\/\/www.discover.com\/online-banking\/banking-topics\/3-life-events-family-financial-planning\/","title":{"rendered":"Family financial planning: 3 major life events"},"content":{"rendered":"\n

When you finally get to put your feet up and close your eyes after a whirlwind wedding weekend, or during the exhausted, exuberant days after a baby is born, you (understandably) probably aren’t thinking about family financial planning. But you probably should be.<\/p>\n\n\n\n

While there are many changes that could impact your finances at any time, such as a raise at work<\/a>, moving, or unexpected vet bills, there are some that can require a significant shift in your family financial planning. Getting married<\/a>, having a baby, and sending a child off to college are three of these major life events that often require you to review, revise or revamp your finances. Although it may feel overwhelming, family financial planning can ease money worries, help you take advantage of tax strategies, and prepare you for the future.<\/p>\n\n\n\n

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Whether you’re tying the knot, welcoming home a new baby, or sending one of your own off to college<\/a>, here are a few tips to help you complete financial planning for the family:<\/p>\n\n\n\n

Getting married<\/h2>\n\n\n\n

When you’re single, your focus is on your own expenses, debts, and priorities. As you enter a serious relationship and begin to combine your life with another person (who has his or her own expenses, debts, and priorities), it can get a bit complicated.<\/p>\n\n\n\n

\u201cThe biggest challenge by far is figuring out how to manage money together<\/a>. Who is paying the bills? What are you saving for? What is a reasonable amount of discretionary spending? Where is your money held?” say Matt Becker, CFP\u00ae<\/sup>, founder of a financial planning practice focused on working with new parents. \u201cNo matter how close you are, you will absolutely have different opinions about these things and you’ll have to work hard to listen to each other and create a system that works for both of you.”<\/p>\n\n\n\n

Reconciling different value systems around money can be challenging for many couples. This is often when couples call in a professional with expertise in financial planning for young families as a resource. Figuring out how much money you’ll need to fund your financial goals<\/a> (and deciding what those are specifically\u2014buying a house? International travel? Early retirement?), reviewing retirement accounts and maximizing your company benefits as a couple are all ways to merge your finances and plan for your future. These are some of the key elements to include when doing family financial planning.<\/p>\n\n\n\n

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But to meet your goals and realize savings, talking is key.<\/p>\n\n\n\n

\u201cLack of communication is the biggest obstacle I see to financial success,” Becker says. \u201cYou really need to be talking regularly to each other about both your short- and long-term goals to make sure that you’re on the same page and that everyone’s needs are being met.”<\/p>\n\n\n\n

Having a baby<\/h2>\n\n\n\n

According to TrustedCare.com<\/a>, the cost for full-time childcare for a toddler is between $550 to $1,100 per month in the U.S. That\u2019s why having a baby can dramatically change financial planning for young families.<\/p>\n\n\n\n

“Everyone knows that childcare is expensive, but it’s hard to understand just how big the cost is until you’re faced with paying the bill every single month,” Becker says. “It’s a real struggle for a lot of parents.”<\/p>\n\n\n\n

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If you plan to have children one day, setting aside savings<\/a> as early as possible for some of the bigger expenses<\/a>, like transportation and housing, can help. Healthcare, for both mother and child, and baby gear can also eat into your household budget and should be factors when financial planning for young families. And there are essential recurring expenses that parents need to prepare for as well, such as larger grocery bills, diapers, clothing, toys, and, eventually, education.<\/p>\n\n\n\n

When financial planning for young families, it’s more important than ever to prepare for difficult times, too. Insurance can protect your family if you or your spouse are injured and can’t work, for example. Have a plan in place in case a spouse dies unexpectedly. It’s not easy to talk about, but it will bring your family peace of mind.<\/p>\n\n\n\n

\u201cLife insurance, disability insurance, and basic estate planning are all crucial for young families, and they’re not always cheap,” Becker says.<\/p>\n\n\n\n

Sending a child to college<\/h2>\n\n\n\n

College costs have risen over the last decade, according to Bankrate<\/a>. While you might be looking forward to your years as an empty nester, college expenses can lead to some considerable changes in your family financial planning. Consider the following:<\/p>\n\n\n\n

1. Your budget<\/h3>\n\n\n\n

More of your disposable income might go toward tuition\u2014the major college expense\u2014but there are other college-related costs to consider when financial planning for the family, says Laura A. Seymour, CFP\u00ae<\/sup>, investment advisor. Those additional costs could include college visits, fees for standardized tests and applications, dorm room decorations, study abroad, and holiday travel home. Making sure your budget accounts for these new costs is essential.<\/p>\n\n\n<\/div>\n\n\n

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Part of financial planning for the family\u2014college edition\u2014might include finding ways to free up cash from your monthly budget while your child is still in high school (those years can fly by) so it’s available to cover college expenses. You may also want to sit down and talk with your child about whether they will make financial contributions to their education.<\/p>\n\n\n\n

“As the child starts college, the family will want to discuss if the child is expected to work and earn any income during college,” Seymour says, “or will the child have an ‘allowance’ or money to spend from the family.”<\/p>\n\n\n\n

2. College savings plans and financial aid options<\/h3>\n\n\n\n

Seymour suggests setting up a 529 college savings plan<\/a> early. As in, after you’ve had a child. These accounts allow you to save for college and later withdraw the funds tax-free for qualified college expenses.<\/p>\n\n\n\n

In addition, when thinking about financial planning for young families, there are some other ways to save for higher education costs.* Those include:<\/p>\n\n\n\n