Life as a parent can be a juggling act. You juggle schedules, chores, meals – and money. From the cost of piano lessons to health insurance and everything in between, managing your household’s finances may not be easy.
In fact, family budgets are the top stressor for moms who say their daily stress level hovers around 8.5 out of 10, according to a survey from Today.com.[1] However, managing money doesn’t have to be stressful. With the right tips, it could be easier to navigate your finances and plan for a brighter future.
To help, consider this list of common financial challenges families may face, along with tips to help manage each one.
Credit card debt
Credit cards can give parents the ability to buy things for themselves or their children exactly when they want, and many offer great perks like cash back or travel rewards. However, some families accrue debt quickly without a plan to pay it off. The average consumer has $15,482 in credit card debt.[2]
Tips to help overcome:
· Aim to keep your balance less than 30% of your overall line of credit
· Make payments on time without fail, and try to pay more than the minimum
· Borrow with a clear purpose and have a plan to pay back what you owe.
School loans
The cost of a college education continues to climb for many Americans, making it the second highest debt Americans carry, behind a mortgage.[3] The average person has $46,950 in school loans. For many, a college education is worth the burden of loans; it can help lead to a good job and financial stability. But, a common challenge is keeping up with repayment plans while managing other family costs.
Tips to help overcome:
· In addition to family bank accounts, have a dedicated savings account to help pay loans
· Consider refinancing to shorten loan terms or reduce interest rates
Medical care
The cost of health insurance to help people manage the prices of doctor visits, prescriptions, and medical procedures continues to affect Americans’ wallets. By 2023, it’s expected that a person will spend an average of $14,944 a year on healthcare.[4]
While medical costs for your family can add up, they’re rarely optional and are often quite pricey.
Tips to help overcome:
· Know what your insurance plan does and doesn’t cover to minimize surprises
· Use in-network providers to help keep costs low
· Ask providers about payment plans if expenses are too high
Money and stress don’t have to go hand in hand. By understanding these financial challenges and asking a trusted professional for financial assistance when you need it, you may be able to better control your habits and work toward a life with less stress for you and your family.
