Financial health in fatherhood
Blog Date 6/23/2021 8:38:57 PM
Whether you’re a new dad or a dad with many years on the job, we’ve gathered some of our favorite fatherly advice in honor of Father’s Day, or any day.
Every father wants to ensure his family is well-equipped for today and whatever the future brings. Whether you’re a new dad or a dad with many years on the job, we’ve gathered some of our favorite fatherly advice in honor of Father’s Day, or any day.
Q: For those dads that are just starting out on their journey into fatherhood, it can be quite the stressful and confusing time in their lives. Of all your tips, which ones would you emphasize that they start immediately?
A: It all starts with taking on a “work hard” attitude and putting in all the honest work necessary to get the job done. It takes perseverance. As a father, there’s no such thing as quitting or taking a day off, and there definitely is no place for “me first.” Your family’s well-being and future becomes paramount. And that can start with putting tomorrow’s needs before today. Create a budget and stick to it. Setting family financial goals will give you something to aim for and milestones to celebrate. When you think about unnecessarily splurging, before you reach for your wallet think about what you could be instead using that money for and choose wisely. Budgeting is not just a fancy finance word! Spend less than you earn, and start saving early and often. It’s never too early to start putting into a college fund. And what can really help is opening a separate savings account from your everyday spending funds. This can help you manage your money and limit the chances of spending dollars you might wish you didn’t later. Financial literacy should be a seed planted early and nurtured continuously.
Q: Undoubtedly, getting our children knowledgeable about financial matters is a big responsibility. This takes lots of nurturing and conscientious care. What clever ways do you have to get our keiki more involved and interested?
A: As a father who’s tried to get his kids to want to do homework, let me tell you that it can be tough. But that’s why it’s even that much more important to present the topic in a way that gets them engaged, but also lets them have fun. One such trick is to structure allowances like a bank account. Not only will this get your kids acquainted with the idea of a running balance, but it gives them experience in managing their money and rewards them for healthy saving practices. Other ideas include involving the whole family, kids included, in appropriate financial decisions. For example, if they know the family is saving to go on a family trip, it’s easier to understand why they can’t get the newest video game system right now. Some day-to-day things that could also provide great avenues for educating your kids on the importance of saving could be as simple as packing lunches together. Buying lunch every day at work can be costly and adds up quickly. Why not instead make lunch for you and your kid(s) and have them help. It provides a great opportunity to share the importance of saving, as well as a great chance for some quality time.
Q: Sometimes all the planning in the world can’t prepare you for the unforeseen. What steps should be taken to best protect our ohana?
A: Preparing for the unexpected is a great way to take some of the worry out of the future. Just as we prepare for hurricane season by putting together a home supply kit, why wouldn’t you do the same for your finances? Having an emergency fund with three to six months of living expenses for your family can be used to cover unexpected costs or repairs. And although it’s not a thought or conversation many of us want to have, we all owe it to our families to take all the necessary precautions to protect them from life’s financial hardships. A life insurance policy, as well as disability and long-term care insurance, are great ways ensure your loved ones are cared for in the aftermath of an injury, illness, or medical tragedy.
Other ways for fathers to safeguard against the unknown are by continuing to consistently put money away towards retirement. Whether it’s a 401(k) or maybe a Roth IRA, retirement funds are investments towards your and your family’s futures. Don’t take for granted your ability to work or feel you can work forever. And if your company offers a 401(k) matching plan, that’s “free” money, so make sure you enroll if the opportunity becomes available.