Starting a family

How to plan for your family and yourself

Saving for your family can be exciting and maybe a bit daunting. These tips can help you create a plan.

1

2

3

Make a new financial plan

Recalculate your emergency fund

Consider life insurance

When planning for a new baby, consider the costs leading up to the big day. You may also want to budget for the time you may spend away from the office.

Emergency funds should cover 3 to 6 months of essential expenses. This number will grow with your children, so revisit it regularly.

Term life insurance and whole life insurance may help protect your family’s standard of living if you, your spouse or your partner passes. 

 

4

5

6

Keep funding your retirement

Get to know 529 plans

Consider Roth IRAs for your kids 

It’s important for adults to plan for their financial well-being. Keep putting money into your retirement accounts, even if you can’t hit the max. The important thing is to regularly set money aside. 

 

Education is expensive and 529 plans can be a gift. (Literally.) Family members can deposit money into these accounts, and withdrawals aren’t taxed if the money is used for qualified education expenses. States set annual contribution limits.

A child with a Social Security number is old enough to have a Roth IRA. Ok, they also need earned income (so document any income your child earns). Good to know: The annual $6,000 contribution limit applies to these accounts.

 

1

Make a new financial plan

When planning for a new baby, consider the costs leading up to the big day. You may also want to budget for the time you may spend away from the office.

2

Recalculate your emergency fund

Emergency funds should cover 3 to 6 months of essential expenses. This number will grow with your children, so revisit it regularly.

3

Consider life insurance

Term life insurance and whole life insurance may help protect your family’s standard of living if you, your spouse or your partner passes. 

 

4

Keep funding your retirement

It’s important for adults to plan for their financial well-being. Keep putting money into your retirement accounts, even if you can’t hit the max. The important thing is to regularly set money aside. 

 

5

Get to know 529 plans

Education is expensive and 529 plans can be a gift. (Literally.) Family members can deposit money into these accounts, and withdrawals aren’t taxed if the money is used for qualified education expenses. States set annual contribution limits.

6

Consider Roth IRAs for your kids 

A child with a Social Security number is old enough to have a Roth IRA. Ok, they also need earned income (so document any income your child earns). Good to know: The annual $6,000 contribution limit applies to these accounts.

 

of Americans were taught the most about personal finance by one of their parents.

The Financial Literacy 2020 Survey was conducted by Marcus by Goldman Sachs® in March 2020 among 2,516 Americans. Savings accounts defined as savings accounts, certificates of deposit (CDs) and money market accounts.

Would like to see other Money Guides by Life Stage?

This article is for informational purposes only and is not a substitute for individualized professional advice. Articles on this site were commissioned and approved by Marcus by Goldman Sachs® but may not reflect the institutional opinions of Goldman Sachs Group, Inc., Goldman Sachs Bank USA or any of their affiliates, subsidiaries or divisions.