Financial planning for young families requires a healthy approach to money. While there’s nothing wrong with financial success, it’s important to regard money as a tool for living rather than something to idolize.
Hebrews 13:5 tells us, “Keep your lives free from the love of money and be content with what you have, because God has said, ‘Never will I leave you; never will I forsake you.’” God tells us not to shun money, but to use the resource wisely. For young families, this means forming a sensible plan for lifelong stability.
Here are a few crucial steps in financial planning for young families that can put them on the right track.
Establish a Budget and Track Expenses
A well-structured budget is key to knowing where your money is being spent and how much you need to cover future needs. Calculate your income alongside monthly expenses. Make essentials like groceries, utilities, and housing the bedrock of your budget. Put money toward your needs first; then set an amount for savings and occasional indulgences. Your family’s life changes over the years, so prepare to adjust the budget from time to time.
Build an Emergency Fund
Financial professionals strongly recommend keeping three to six months’ worth of expenses on hand in case of job loss, medical needs, or other emergencies. The emergency fund should be held in a liquid, accessible form like a savings or brokerage account. Don’t worry about making a big splash first—it’s fine to start the fund with just a small amount. Regular and consistent deposits are more important.
Manage Debt Wisely
High-interest debts like credit card accounts and personal loans complicate financial planning for young families. Avoid these methods whenever possible; use only when they align with your long-term goals. Have a plan for paying back high-interest debts if you’re already saddled with them.
Two approaches to repaying debts are the “snowball” and “avalanche” methods. In the snowball method, you pay back the smallest debt balance first and move on to the next highest. The avalanche method is the opposite—work on paying back the biggest debt now to save more money over time.
Save for the Future
Saving must be a central aim of financial planning for young families. The earlier you start investing, the more you can take advantage of compound growth through interest. Whatever stage your family occupies now, consider tax-advantaged investment accounts like 401(k)s, IRAs, and 529 college savings plans. Consistent contributions are key to investing. Check your balances from time to time and raise contributions as your income grows.
Safeguard Your Family With Insurance
Health, life, and disability insurance can shield your budget in unexpected emergencies. Review the policies once a year to keep them in sync with your family’s needs. You might also consider renters or homeowners insurance to shield your belongings.
Plan for Major Goals
Milestones define family legacies. Saving for education, travel, or homeownership are ambitious but attainable goals. Break them down into workable steps you can accomplish in sensible timelines. These goals can change over time.
Get Educated and Seek Professional Guidance
Commit yourself to financial literacy—something you’ll always be learning about. This way, you can stay on top of news and developments that can shape your family’s finances. Work with a professional financial advisor who can build a strong strategy that’s adaptable as your family grows.
Faith-Based Financial Planning for Young Families
God gives provisions like money for families to survive and thrive. All of us are stewards of His gifts. Financial planning for young families is part of that responsibility.
EagleFlight Wealth Management helps our clients attain solid financial standing based on Christian guidelines and unique needs. Families contact us for principled advice that aligns with their spiritual values.
To get in touch to schedule an introductory meeting, call (765) 288-1927 or email barry.hickey@cfdinvestments.com.
About Barry
Barry Hickey is the founder, managing partner, and financial advisor at EagleFlight Wealth Management, a financial services firm based in Muncie, Indiana, helping people live and retire with dignity and financial peace by planning their financial future with a biblical worldview. Barry has been in the financial services field since the mid-1980s. In 2006, inspired by Isaiah 40:31 (“They that wait upon the Lord shall renew their strength; they shall mount up with wings as eagles; they shall run, and not be weary.”), Barry became an independent financial advisor and founded EagleFlight with the mission to help people plan for their financial future and find financial peace, and to fulfill the mission God gave him.
Born and raised in Muncie, Barry graduated from Muncie Southside and served in the Marine Corps during the Vietnam War. He holds a Series 6, 7, 63, and 66 securities licenses and the Indiana Life and Health Insurance License. He also holds the Accredited Asset Management Specialist℠, Chartered Retirement Planning Counselor℠, Certified Kingdom Advisor®, and Retirement Income Certified Professional® designations.
Outside of work, Barry enjoys reading, watching football and baseball, and spending time with his wife (Carla), children (Kristin, Ryan, and Lauren), and grandchildren (Emmi, Cate, Ben, Maddie, Sophia, Bella, and Brady). His favorite Scripture is Matthew 6:33, “But seek first his kingdom and his righteousness, and all these things will be given to you as well.” To learn more about Barry, connect with him on LinkedIn.
Advisory Services offered through Creative Financial Designs, Inc., a Registered Investment Adviser. Securities offered through CFD Investments, Inc., a Registered Broker/Dealer, Member FINRA & SIPC, 2704 S. Goyer Rd., Kokomo, IN 46902. 765-453-9600. EagleFlight Wealth Management is not an affiliate of Creative Financial Designs, Inc. or CFD Investments, Inc.