Traditional Family Unit -
If you are a single income family with children you should consider:
1. Start saving for college - at 7% interest, your money doubles every ten years so start when the kids are young.
2. Buy term life insurance for at least twice your mortgage amount - more is better, especially if you have more than one child. Your objective is to be sure that the mortgage would be paid, that living expenses would be available for a period of transition, and there would be a down payment made on the children's education.
3. As your children get to age 14 and beyond, consider encouraging after-school employment. Not only does this build character, but they can also earn thousands of dollars without paying federal income tax.
Singles / Single Parents -
If you are on your own, or are raising a child by yourself, think about:
1. Setting aside three months take home pay for an emergency fund. If you are a single parent, you'll sant to strive for six months on hand.
2. Look for mutual funds or other alternatives for your savings to provide a higher return than money market accounts, with measured risk of course. If you are a single parent, decide when to start saving for college and talk to your banker.
3. Protect your credit rating. Perfect credit will be helpful in moving, refinancing or even obtaining a credit line or home improvement loan when needed.
4. Check you homeowner's insurance to be sure you have sufficient coverage to replace your belongings. "Replacement" cost coverage is preferable.
5. Collect child support if you're entitle to it.
Two-Income Families -
If you are fortunate enough to have two incomes, careful money management and goal setting can secure a comfortable retirement.
1. Buy a home or a second home, if appropriate. The wealth created through long-term ownership of real estate is unmatched. The tax deductible nature of your real estate payments make for another bonus.
2. Use and maximize your retirement savings options. As much as retirement seems far off in the future, it is coming. Anything you can do now can make a big difference in 20 to 30 years.
Empty Nesters -
When the kids are grown and gone, try to:
1. Maximize your savings for retirement.
2. Consider reducing your life insurance if your mortgage is paid off.
3. Triple check your long-term health care insurance options while you're still healthy.
4. Check your social security benefits by filling out the proper forms.
