In the 2020s, hardworking fathers and mothers juggle dozens of financial responsibilities. Under that kind of pressure, even one additional expense can blow up an otherwise well-constructed budget. Ask any mom or dad about their top money related concerns, and they’re bound to mention things like saving for a first home, paying veterinary bills, keeping family healthcare premiums up to date, and funding current and future education.
Fortunately, with a little foresight, a bit of professional advice, and a large dose of dedication, any couple can save the money they need to take care of life’s most important concerns and stay on solid ground. Here are pertinent details about how to finance veterinary care, pay for education, get into that first house, and stay ahead of healthcare costs.
Purchasing a First Home
The two essential elements of acquiring a first home are creating a family focused strategy and writing a detailed plan. Step one is tracking every monthly expense meticulously. That includes large and small amounts for childcare, eating out, entertainment, groceries, etc. Step two is identifying any non-essential spending and making the appropriate cuts.
Ironically, one of the simplest but most overlooked steps is to create a first home savings account into which you transfer a specified portion of every paycheck, bonus, cash gift, and tax refund. It all adds up as you aim for accumulating between 10% and 20% of the estimated purchase price as a down payment. Doing so means getting much more favorable mortgage rates and not having to pay PMI (private mortgage insurance).
Do your due diligence via utilizing online research into FHA loans, grants that help with down payments, VA options, and first-time homebuyer deals. Be attentive to your DTI (debt-to-income) ratio; ideally, it should be under 43%. A quick way to knock DTI down is to pay down any high-interest plastic. Search for homes near good schools and factor in commuting expenses and needed nursery space.
Paying for Long-Term Pet Care
For millions of busy dads and moms, long-term pet care is part of the annual budget. This is particularly true among those who truly value animals, like cats and dogs, as beloved companions for everyone in the household. Wise parents view pets as more than temporary sources of fun for youngsters. Instead, they look at all house friendly animals as members of the family, companions who love every one of their caretakers unconditionally.
Kids learn plenty of lessons by taking care of their non-human friends, like accountability, empathy, and financial responsibility. Grooming, exercising, and feeding a dog or cat is an essential part of growing up for children of all ages. However, expenses can add up fast. Besides food costs, there are bills for dental cleaning, medical emergencies, preventive treatment, and routine veterinary visits.
Fortunately, there are several reputable financing providers, like Cherry, CareCredit, and Wells Fargo Health Advantage, that help families help parents manage all their pet-related expenses. The better third-party financing companies feature 0% APR on qualifying treatments, budget friendly payment plans, and immediate treatment for necessary conditions. There’s no reason to deplete the family savings account to get great pet care in the 2020s.
Nowadays, parents are discovering the many benefits of veterinary financing, particularly the ability to pay for procedures in monthly installments for as long as 5 years. For everything from regular checkups to complex surgery, pet owners leverage the power of financing to keep expenses under control. Clinic owners also like the arrangement. The flexible options bring in more customers, boost approval rates, and build client loyalty.
Financing Healthcare
Smart ways to pay for healthcare include employer funded plans, if available. Next, working adults can contribute to Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs), both of which let savers use the money to cover prescriptions and copays. While the Affordable Care Act plans are not always that affordable, look for high-deductible options and subsidies during open enrollment for marketplace plans. Take advantage of preventive screenings and telehealth visits whenever possible due to their low relative cost.
Funding Education
Paying for a family’s education expenses can be tricky, but it’s a winnable battle for diligent, disciplined couples. To cover both long-term and short-term costs for a child’s schooling, there are 529 plans that operate like IRAs but are for college. Likewise, UTMA (Uniform Transfers to Minors Act) custodial accounts let families build tax advantaged savings for up to 18 years to cover a son’s or daughter’s college bills. For short-term school-related bills, the best options are state grants, scholarships, Coverdell ESAs (Education Savings Account), and high-yield savings accounts.
Stay current on available work study options, merit-based scholarships, and private grants. Complete the federal aid universal application form, FAFSA (Free Application for Federal Student Aid), to see how much money you qualify for. For working adults who choose to return to school, explore any employer sponsored tuition reimbursement programs first, as they can cover all the costs of obtaining additional training or degrees. Keep in mind that federal student loans and private loans can usually cover any shortfalls.
Marissa is a Pediatric Occupational Therapist turned stay-at-home mom who loves sharing her tips, tricks, and ideas for navigating motherhood. Her days are filled starting tickle wars and dance parties with three energetic toddlers and wondering how long she can leave the house a mess until her husband notices. When she doesn’t have her hands full of children, she enjoys a glass (or 3) of wine, reality tv, and country music. In addition to blogging about all things motherhood, she sells printables on Etsy and has another website, teachinglittles.com, for kid’s activity ideas.
