6 Tips For Young Families To Build Wealth

Time moves quickly, and retirement will be here before you know it. Perhaps talking about money with your partner has felt a little taboo since the term “gold digger” was coined, but it’s healthier than playing fast and loose with your credit card while keeping your spouse in the dark. Without knowing how much your spouse makes, you can’t plan how much to invest.

1. Get On The Same Page.

It’s pretty common for couples to have different attitudes towards money. If one person is a spender and the other a saver, this can cause conflict if each is not open about their wants and needs. But for most people, a simple conversation will do, he says. Just don’t be embarrassed if you’re not used to talking about money.

2. Plan For The Future.

It can be bonding for couples to talk about short- and long-term hopes and dreams. Ask each other questions about career goals, whether you’d like to rent or own a house, how many children you’d like to have, debts that you have or are willing to take on, and when you plan to retire.

3. The Financial To-Do List.

There are the practical concerns that every newlywed and young family should address immediately. A variety of things should be updated, including emergency contacts, tax withholdings, health care benefits, wills, retirement plan beneficiaries, life insurance coverage and investment accounts.

4. Know The Perks.

There are financial benefits that favor those who are married. Some could include the right to make deductible contributions to a spousal IRA, the ability to receive disability, Medicare, or Social Security benefits for a spouse, tax benefits associated with filing jointly and some estate planning and inheritance benefits.

5. Pay Off All High-Interest Debt First.

If your investments earn less than 7 percent, and your credit card debt is accruing at 10 percent, it only makes sense to pay the card off first. “Simply put, the interest rate on any debt can be compared to the investment returns you expect to get.

6. Save 20 Percent Of Your Income.

It may seem difficult to set aside money for the future when you’re paying off student loan debt and managing other household expenses now, but it’s important to start. Consider automating deductions from your bank account so you don’t feel the sting, and always take full advantage of company retirement plans that offer free matching money.