Think of the families you associate with. Are the majority of them the traditional 1950’s model? This nuclear family model of the breadwinning dad, stay-at-home mom, and 2.5 children is changing.
In current times, we’re more likely to know families that encompass dual-income households, mom being a primary breadwinner, same-sex couples, and blended families.
Like the popular television show portrays, the modern family has out-numbered the traditional. Today only 20% of families are considered “traditional.”1 Let’s discuss the modern family and finances.
It used to be that finances were something the husband took care of and the wife had little to do with them. Today 4 out of 10 women are the primary breadwinners and 1.4 million American men are stay-at-home dads.2
These changing dynamics bring up questions today’s modern couples should ask themselves.
- How will the money in our home be earned? Will one of us be the primary breadwinner? Do we both need to generate income?
- How will we manage the money for our family? Will we make all decisions together?
- What bills do we pay jointly? Individually?
- How do we make investment decisions? Is there one person who takes the lead?
- If something happens to one of us, are we financially prepared? Do we both need life insurance?
- [For blended families] How do we handle our step-children’s expenses, inheritances, and other financial matters?
Regarding family and finances, have you and your significant other answered these questions?
It’s important that you both are on the same financial page, especially if you have or plan on having children. Money problems are a top reason why people get divorced and once children are involved it just gets more complicated.
Having a game plan ahead of time will help eliminate future disagreements. It’s important to remember that there is no right or wrong, just different perspectives so having open discussions is vital to strengthen relationships.
As your family changes and grows, review your financial plan.
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As your family and finances change and grow, review your financial plan. Do you need to add life insurance?
If you already have life insurance, do you need to update the beneficiaries of the policy?
Who in your family is insured? Anyone who contributes should have life insurance coverage, stay-at-home parents included. The job of a stay-at-home parent includes being a teacher, housekeeper, chef, event planner, accountant, and chauffeur.
Term life insurance is affordable coverage and the death benefit can help:
- Replace income – A paycheck is how a family maintains their standard of living. The death benefit helps to pay bills and keep things going.
- Afford time off work – Losing a loved one is devastating and the death benefit allows time for grieving. If you have children it allows time to dedicate to them during this tragedy as well.
- Pay the mortgage – The death benefit can help ensure your home stays your home even after losing a primary earner. This is especially crucial if you have children so they can stay in their school district and familiar surroundings.
- Carry out the dreams you set together – You and your significant other made plans. Whether it was to retire and travel or send your children to college, the death benefit can help ensure the dreams you set together can still come true.
Like most other kinds of insurance, term life insurance is something you hope to never use. While the death of a loved one can cause emotional, mental, and physical stress, life insurance can help relieve the financial stress it can bring.
Take a moment to get a term life insurance quote now. It doesn’t cost anything to see an estimate and we won’t ask for any contact information until you are ready to purchase. Don’t wait. Your family and finances are counting on you.
1 Kathleen Burns Kingsbury, How to Give Financial Advice to Couples, 2014
2 Farnoosh Torabi, When She Makes More, 2014
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