As a parent, you already have a full plate of responsibilities, and juggling your finances is one of them. The good news? You don’t have to do it alone. Financial advisors are experts who are there to keep one eye on the present and one on the future, so you can get in a comfortable financial position for years to come.
So, is it worth paying for a financial advisor? The experts at Savvy say there are 5 reasons why every parent needs a financial advisor.
1. They can guide you through major financial decisions
You’ll probably have to make many financial decisions over the course of the next few years — some small, and some big. Along with locking in life insurance and managing your taxes, you might also want to plan for retirement or build, grow or diversify an investment portfolio. You might be considering buying property, or taking out a loan. It’s a lot to think about, and researching those products or opportunities on your own can take up time you may not have at this stage of your life. After all, time is money!
Enter: a financial advisor. They can do some of the legwork and help you navigate complex financial matters like paying off debt or estate planning. They can also evaluate investment strategies with you, and guide you towards the best one for your goals and budget. A good financial advisor will look at your finances from a holistic standpoint, and teach you how to save or make money in a secure way. If you’re new to financial planning, they can also help you to organise your finances and take the next step.
2. They can help you create a budget — and stick to it
It’s no secret that raising kids is expensive. Between school, sports, entertainment, extracurriculars, food, clothes, childcare and healthcare, everyday expenses add up. When you add in rent, mortgage payments, insurance, loans and any money you’re putting away for the kids, it can feel like there are endless expenses to keep track of.
Many parents hire a family financial advisor to build a household budget that balances the amount of money coming in and going out. This can not only help you to avoid overspending, but it can also put you in a better position for the future as your financial advisor will factor investments and savings into your plan. This process can also be an eye-opening one, as you’ll discover areas where you can easily cut down — such as subscriptions or grocery items.
3. They can set up financial plans for you and your children
Another aspect of financial planning is exactly that: financial plans. From bank accounts to trusts and super funds, you might want to set up a range of plans to protect you or your children. For example, it’s a good idea for parents to have an emergency savings fund, which works as a safety net in case you run into unforeseen financial circumstances — like a reduction in your work hours or receiving a major medical bill.
Nobody can predict those events, which is why it’s important to try to grow your emergency savings fund. The amount you’ll need varies by family, but most family financial advisors recommend saving enough to cover three to six months’ worth of expenses. On the same note, your advisor can also talk you through writing a will, allocating your assets or updating your life insurance beneficiaries.
As part of financial planning, your financial advisor can also help you to consolidate your money. Many of us have accounts scattered across multiple banks or platforms, which can make it hard to understand where you stand financially. Your advisor will be able to track down those assets, and help you to move or consolidate credit cards, super funds or brokerage accounts so they’re easier to manage.
4. They can compare personal loans to find the best deal
At some point, you might need an influx of cash to cover large purchases — such as uni tuition, childcare costs, renovation or relocation fees. Or you might need to pay off a debt, and don’t have the cash on hand.
As the name suggests, a personal loan can help you to pay personal expenses, and you get the money in one lump sum. Since they usually have lower interest rates than credit cards, they can help you avoid taking on other types of debt that may be harder to repay.
There are hundreds of personal loans on offer, and that can be overwhelming. That’s where Savvy comes in. They partner with 25 top lenders across Australia, including all major banks, which means they have access to the best rates for personal loans as well as loan packages. Their brokers can help you to compare your options to find the lowest personal loan rates. They can also answer any questions you have around prequalifying or how to get a personal loan with bad credit.
5. They offer you peace of mind
Money can be a stressful topic. We’re all constantly thinking about how to make it, save it and spend it, and a family financial advisor can ease some of that stress by managing your money for you. By overseeing your accounts and investments, they can also boost your sense of financial security so you can focus on the things that matter most to you: like time with your children.