To kids, money is typically not a big concern. In comparison to ice cream, video games and sleepovers, financial matters definitely take a back seat in the mind of a child. However, parents have to think about how to support their kids, making money a top priority for them in their daily lives.
Although summer vacation is still off in the distance, parents need to start considering how they’re going to afford day camp and childcare. Some may already be feeling the crunch as their little ones sign up for afterschool activities – certain sports require money to be spent on equipment and clothing. So how can moms and dads make sure that they’re spending wisely?
Accounting for all expenses
This is an area where financial advisors can do a world of good. Often, parents don’t think about the smaller expenses that can add up, such as the cash they put toward their kids’ extracurricular activities.
When you go through your clients’ financial portfolios, make sure you take these expenses into account. Ask your clients to hold onto any documentation of expenses, as well as receipts that can be used as reference.
Planning for the future
Parents may want to put a cap on the number of extracurricular activities their kids do per year to give themselves better control of their finances. For instance, if they know that their children will only be playing two sports each throughout the school year, they can develop accurate cost estimates.
Juggling large expenses such as a mortgage with smaller ones like soccer equipment and football padding can be difficult. However, coming up with a game plan can make it easier for financial advisors and clients alike.