Between school pickups, meal prep and work emails, financial planning doesn’t always make the daily to-do list. But letting it sit on the back burner can come at a steep cost, especially for families managing tight schedules and budgets.
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The good news is that it doesn’t need to be complicated or time-consuming to create a solid plan that protects both today’s needs and tomorrow’s goals. Here are five money moves that can help busy parents build wealth — without adding more stress to their lives.
Many parents fall into what Kerry Meath-Sinkin, CFP®, AIF®, calls “ostriching” — ignoring finances because it feels overwhelming.
“Busy parents often see financial planning as a daunting, confusing task — so they naturally put it off,” she said.
But avoiding action only creates more stress down the line. Even a few small steps can reduce anxiety and build momentum. Begin with a basic review of monthly income and expenses, then set up automatic savings where possible.
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Life insurance isn’t exciting. It’s also essential. Too many parents assume employer coverage is enough, when in reality it rarely stretches far. If income disappears, families still face mortgage payments, childcare costs, future tuition and more.
Term life insurance offers affordable peace of mind, especially for parents in their 30s and 40s. Rates stay locked in for the duration of the policy, and coverage can be tailored to family size and income. A common rule of thumb recommended by experts is to aim for coverage that replaces 10 to 15 times your annual income — but if that’s not feasible right away, starting somewhere is better than waiting.
Saving for the future while managing today’s expenses is no easy task. If your employer offers a 401(k) match, most experts recommend making that your first priority. It’s essentially free money — a 100% return on your contributions — and one of the most effective moves you can make to build long-term wealth.
After capturing the match, focus on building a three- to six-month emergency fund. “This cushion prevents you from relying on high-cost credit if unexpected expenses arise,” said Meath-Sinkin. Once your emergency fund is in place, turn your attention to paying down any high-interest debt. Letting this kind of debt linger can quietly drain your budget and slow financial progress.
Next, revisit retirement contributions beyond the match. Consider Roth vs. traditional 401(k) options depending on your tax bracket and long-term goals. Saving for college, a down payment or a big home project? Assign a portion of the budget to these goals, and if the timeline is more than five years out, look into moderate investment accounts. Don’t sacrifice retirement for short-term goals — your future security depends on steady, consistent growth.
Meath-Sinkin advises parents not to delay estate planning, no matter how busy life gets.
“I always find estate planning sneaks to the bottom of a busy parent’s to-do list — even though it’s arguably the most crucial task,” she said.
According to Caring.com, 35% of Americans without a will say it’s because they don’t believe they have enough assets to pass on, even among those with children under 18. But without a legal plan, courts — not parents — get to decide who gets guardianship.
If legal benefits are available through your employer, use them. If not, start by asking for a referral from a CPA or advisor. Parents should also review beneficiary designations on old accounts like 401(k)s, IRAs and life insurance policies — especially after major life changes like marriage, divorce or new children.
Even a basic financial plan needs a regular check-in. Once a year is plenty, according to Meath-Sinkin, unless there’s a significant life change. These reviews should focus on the essentials: cash flow, debt, retirement contributions, insurance coverage and estate documents.
Many families also benefit from a subscription audit. Small monthly charges can add up fast. Cancel unused services and redirect those dollars toward savings or debt repayment.
Use tax season and open enrollment as natural checkpoints for reviewing benefits, withholdings and investment options.
Financial security doesn’t require spreadsheets or a finance degree. The trick is to stop waiting for a perfect moment and start with whatever time and energy you have now. Keep it simple. Stay consistent. And most importantly, don’t bury your head in the sand.
Looking to build a legacy? Check out our Life to Legacy guide for expert advice and smart moves you can make today.
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This article originally appeared on GOBankingRates.com: 5 Money Moves Busy Parents Can Make To Build Wealth — Without the Stress
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