Update your financial plan as your family evolves
(NC) -- The “typical” family in Canada may be evolving, but one thing remains the same: Every family needs a financial plan to help manage its money and achieve its goals. But establishing a plan is just the first step. Reviewing it regularly is essential, especially if it needs to be adjusted to take changes within the family into account.
“Today's families are more complex and diverse than ever before, as the traditional idea of two parents and their children living together under the same roof has increasingly given way to single-parent or blended families, same-sex couples and multiple generations sharing a home,” says Lee Bennett, the senior vice president at TD Wealth Financial Planning. “Each family situation is unique, which is why there's no one-size-fits-all financial plan to meet its needs.”
Bennett says it's important that, whatever financial plan a family develops, they keep it up-to-date so that important life events such as the birth of children, buying a home, changing a job, or starting a business are accounted for. Bennett notes that those people entering a new relationship or blending their families, who may already have a financial plan, should ensure their plans are aligned with each other to reflect the new family arrangement.
“A financial planner can help families develop a plan that will suit their unique circumstances and continue to help them achieve their financial goals,” says Bennett. “A financial planner can also help them plan for some of life's events that are likely to happen in the years to come, such as post-secondary education and retirement.”
Bennett notes that having an up-to-date financial plan can also help to reduce potential friction within families by providing everyone with an agreed blueprint for important saving and spending decisions and a foundation for adapting the plan as family dynamics change over time.