Start your family on the path to financial wellness

Organized households have more money and less stress.

They rely on simple systems to make sure their banking operations are as automated and efficient as possible, that their investments are on track, and their families are properly protected.

As you reunite with your family for the holiday season, know that you can get your family’s finances in order too with these starter steps.

Get the right types and levels of insurance

When families think about insurance, they often stop at home and in the car and it is dangerous. Do not delay in purchasing life, critical illness and disability insurance, as these are even greater risks; whether you or your spouse (if applicable) die, become ill or disabled.

The amount you need for each coverage will depend on a multitude of factors, such as your age, income, medical history, etc. It is not a unique situation. I am a huge fan of getting a referral to an insurance provider who can help you assess what you need.

It should be noted that the insurance industry is highly disrupted by technology these days. You may find yourself consulting with both a (human) insurance advisor or even one of the emerging tech companies that have removed the human advisor part of the process and are using algorithms to match you with a policy. Some of those names that have crossed my desk recently are Policyme.com and PolicyAdvisor.com.

The final insurance point to remember is that you are statistically more likely to become critically ill or disabled than to die, so don’t neglect your options for critical illness and disability insurance. I often see this mistake made with my students.

When you get your quote for the coverage, shop around and then factor the cost into your budget.

Write your will

Willful.co, a digital will writing platform, conducted a study just over two years ago and found that 65% of parents had not written their wills.

Parents, if you don’t have a will, please stop what you are doing right now and make it one of your priorities.

A will dictates how you want your property and guardianship of your children to be managed if you die. It’s not a matter of laughing. If you don’t make a plan for it, the courts will decide what will happen to you.

In your will, you will need to choose an executor (person who administers the estate) and a guardian (person who will take care of your children).

If you have an old will, it may be invalid now. Let this be your signal for a refresh. You can make your will through a lawyer (usually when your situation is a bit more complicated) or through an online platform like the one mentioned above or something similar like Legalwills.ca

Systematize your savings and invest

You are so busy that you have a hard time finding a time for yourself, right? At least that’s how I feel with two young children. Use helpful tools and systems to take the guesswork out and forgetfulness from your finances. For example, set up all of your bills to be paid by direct debit, including paying off your total credit card balance each month. Set up automatic investment contributions. Leverage the power of online meetings to complete your semi-annual recording with your financial advisor, investment advisor or planner. Allow your lenders to make an extra payment or two each month to get rid of your debt a little faster. You can also round up your regular payments by a few more dollars to automatically pay a little more.

The systems you spend time putting in place should make your financial orchestra look good on your behalf and the music sounds good.

Prepare your children for success

If you have children under the age of 18, you are probably wondering “how am I going to help them pay for their school?” ”

The good news is RESPs are a fantastic way to save for future education, which in 18 years is expected to cost over $ 100,000 for a child born today. When you contribute, you even get a helping hand from the government with the Canada Education Savings Grant (maximum grant of $ 500 per year or 20% of your contributions). So if you work this backwards calculation, you have to invest $ 2,500 per year to get that maximum grant of $ 500. If your income is lower, you may even be eligible for the Canada Learning Bond.

It might sound a bit rude, but if the money is running out, ask your family and friends not to buy more toys for your kids this holiday season (and for birthdays too) and ask them to contribute to an RESP instead.

When you invest this RESP money well, and you should, it will grow through the power of compound interest and reinvested returns as well as the grant money.

There are other things you can do for your family that will help everyone’s financial journey. Talk openly about money. Encourage saving for things rather than going into debt. Empower your kids to find a job and maybe even start investing the money they earn. And celebrate your financial success! The hardest part of getting your finances in shape as a family is getting started. Work step by step and learn as you go.