Creating a Family Financial Plan

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Having a sound financial plan is an important part of life, especially when you have a family to provide for. Starting out in creating your financial plan can be difficult. Continue reading below for some tips in kicking off your family’s financial plan.

Consider Factors Specific to Your Family

When sitting down and crafting your family’s specific financial plan, keep factors specific to your family in mind. If you have a child, or multiple children, it may be worth looking into opening a 529 plan, a trust, or a children’s savings account.

A 529 plan is an account designed to save for your child’s future education costs. 529 plans come in two varieties. In the first type, you prepay tuition at today’s rate at select private colleges and universities, but this money will only go towards tuition. Alternatively, you may pay into the account and save for tuition AND room and board, textbooks, and other qualified college expenses. However, you will be paying tuition at the rate it is when your child attends the school, not today’s rate.[1]

Meanwhile, a trust fund is a legal arrangement in which funds or assets are held by a third party for the benefit of a beneficiary. Assets that may go into a trust include but are not limited to bonds and stock certificates, real estate, cash, money market accounts, jewelry and other personal belongings, and vehicles.[2] For further advice, consult with an attorney or financial advisor.

Finally, a children’s savings account is a savings account designed for your child. It teaches financial responsibility, and oftentimes parents co-own these accounts with their child. Consider interest rates when deciding upon a savings account for your child.

After determining which account(s) you’ll be investing in, look at your finances further to determine how much you can afford to put in each month.

Save as Much as Your Budget Allows

During your peak earning years, your financial advisor may advise you to max out contribution limits to retirement accounts and invest in a brokerage account as much as possible. If you’re not quite there yet, however, just try and save as much as you can each month. Some experts may recommend the 50-30-20 rule, which suggests putting 50% of your monthly income towards needs, 30% towards wants, and the remaining 20% into savings.[3] If your current budget doesn’t allow this, consider taking a look at where your money goes each month and cutting out unnecessary spending.

Keep Retirement and the Future in Mind

Another factor to keep in mind when creating your family’s financial plan is future plans and how close you are to retirement. If you’d like to try and create generational wealth for your children, you should try and save as much as possible. If you’re young and have just entered the workforce, your savings plan will look different from that of someone nearing retirement.

For the best advice and help in creating and carrying out your family financial plan, consider consulting with a professional financial advisor.


All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.

Before investing, the investor should consider whether the investor’s or beneficiary’s home state offers any state tax or other benefits available only from that state’s 529 Plan.

The use of trusts involve a complex web of tax rules and regulations. You should consider the counsel of an experienced estate planning professional before implementing such strategies.

The opinions are of those the writer, and not the recommendations or responsibility of Cetera Advisor Networks LLC or its representatives, and not a recommendation or solicitation to buy or sell investment products. This information is from sources believed to be reliable, but Cetera Advisor Networks LLC cannot guarantee or represent that it is accurate or complete.

[1] “Saving for Your Child’s Future: College Funds, Trusts, and Investments.” Valorem Financial, Jan 23, 2024. Accessed Apr 24, 2024.

[2] Ganti, Akhilesh. “What Is a Trust Fund and How Does It Work?” Investopedia, Feb 26, 2024. Accessed Apr 24, 2024.

[3] “Budgeting basics: the 50-30-20 rule.” UNFCU, n.d. Accessed Apr 24, 2024.

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