Lifestyle

7 Father’s Day Financial Hacks for Dads

From diapers to vacations to groceries, emergency trips to the doctor and more, planning for your financial future is some superhero-level stuff when it comes to family finances.

Like you, we love finding ways to make things easier and more efficient whenever we can. This Father’s Day, we’ve gathered our top dad-specific “financial hacks” to help you develop your budget and help improve your family’s financial future.

1. Redirect a Portion of Your Paycheck to Savings

“Little” expenses like takeout and golf outings can quickly add up, eating through cash you’ll need in the future for expected (and unexpected) expenses. Our recommendation? Have a direct-deposit into your savings account set up to be taken out of each paycheck.

2. Make it a Little Harder to Get at Your Savings

So you’ve started funneling funds from your paycheck into savings. Awesome! The next step is to make sure it’s not too easy to reach into that cookie jar. Consider using a money market account to build up your savings, as they’re a little more fortified from impulse cash-grabs.

3. Watch Out for Wants vs. Needs

A.K.A. budgeting, this makes it much harder to confuse wants and needs. For example, add a “probationary period” of at least 24 hours to anything you want to buy that you don’t absolutely need. You might want the super-deluxe detailing to get the Cheerios out from between the car seats, but you may not really need it. Which reminds us…

4. When you can DIY

If you can, vacuum and clean out your own car. Pack your own lunch instead of hitting up the cafe curbside pickup near your office. Become your house’s handyman. Choose free activities you can do with your kids. Think about all the not-so-obvious cracks your money tends to fall through and take inventory of where you can cut back.

5. Prioritize Your Retirement

If it makes sense for your financial situation, open a Roth and take full advantage of your 401(k) match when available. Educate yourself about common retirement pitfalls. We get it — there are a lot of expenses that come along with having children, from gifts to college savings. You’re doing both yourself and them a favor by planning for your retirement while they’re still young.  Which brings us to our next point…

6. Consider a 529 to help Give Your Kids a College Boost

No one wants their kids saddled with student loan debt. The good news? A 529 is a budget-efficient way to help set your young kids up for the future.

7. Teach Your Kids About Spending

When it comes to teaching your kids about money, earlier is better. Make an effort to involve your kids in family financial decisions, like planning a vacation. These provide teachable moments about instant versus delayed gratification: “We’re not going to order pizza this Friday; instead we’re going to use that money to buy your [fill in the blank].”

The Bottom Line

The good news? It’s more than possible to be the superhero your family wants (and needs) when it comes to finances. The better news? You don’t have to do it alone. A financial professional can help you right-size your spending and develop a rock-solid plan for your family’s current and future needs.

 

 

Brought to you by The Guardian Network © 2020.  The Guardian Life Insurance Company of America®, New York, NY

2020-103833 Exp 6/2022

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