The Parent Checklist: Don’t pause your future while you build theirs

If you’re a parent or caregiver with kids at home, you’re in the thick of it. At some point, you realize that your own well-being has been on the back burner for years, and you think, “I’m planning everyone’s future except my own.” Parenting is a long-term project, and you want to be along for the entire ride. So, the most powerful planning happens before you feel “old enough” to need it. That’s exactly why a checklist can help.

A readiness plan for your future

Let’s start with a pat on the back. Barely a third (29%) of working Americans rate their financial health as very good or excellent. But those with kids fare better! Maybe it’s the sense of responsibility that comes the moment you realize someone is totally dependent on you, but 39% of parents say their financial health is very good or excellent. So, with that in mind, you already have a head start on your planning. Let’s start where you are, pick a few action items to do this month, and go from there.

1. Give an upgrade to your mind, body, and wallet®

Only 38% of parents rate their emotional health as very good or excellent. If that were a stat about kids, you would do everything in your power to rectify it, so why doesn’t the same apply to yourself? One way to improve your mental wellness is by building positive stress-management habits or strengthening your social connections. Don’t forget that a good therapist can provide you with simple coping tools to help improve your mental health every day. Of course you’re taking your kids to their dental visits. Are you going to yours? Develop good health practices now (like regular doctor and dentist visits, exercise, and sleep hygiene) so your health and longevity are ensured. Age 60 is not the time to start taking care of your body! Are finances a big source of worry? Recognize that your wallet is a stressor that you can outsource. Use a financial advisor to help you figure out how to build your emergency savings, diversify savings across tax-advantaged options, protect your income, and create (or update) your estate and legacy plans.

Your financial wellness is a vitally important pillar to your overall well-being, deeply affecting your mental and physical wellness. So, read on for action items to help improve it.

2. Build the foundation for retirement (even if cash is stretched)

The key to saving for retirement is building momentum. Don’t aim for perfection — aim for consistency. Enroll in your organization’s retirement plan, ideally at whatever percentage of your salary they’ll match. Then, set an annual “auto-escalation” rule, which will increase in percentage with each raise or bonus.

Do you have a bunch of 401(k)s from other jobs floating around? Consolidate them to get a better grasp of how much money you truly have. This will help you get a clearer idea of how close you are to your retirement “number” — how much money you would like to have at retirement and the age at which you plan to retire.

3. Get your “shock absorbers” in place: Don’t wait until 60

Parents often get hit with life events that deplete hard-earned savings: surprise expenses, layoffs, caregiving, home repairs, and accidents. Being able to depend on an insurance check in an emergency — such as life insurance to pay a benefit to your family if you pass away — can give you confidence to weather a financial storm. These products only get more expensive — and more elusive — as you age. While you’re in this mindset, it’s a good time to think about housing. Only a third of working parents (29%) have a plan for where they’ll live as they get older.¹ Are you going to age in place, downsize, or live with your children (if so, they would definitely like to know that in advance)? As with any real estate move, have a “Plan B” housing list of two to three viable options if your first choice doesn’t work.

4. Have some big conversations about longevity and finances with both your parents and your children

Less than half (44%) of parents are comfortable discussing money with their families. This doesn’t have to be you! A lack of communication can cause major stress. Your conversations don’t have to be perfect, they just have to be started. So when your loved ones — and you — get older, you can more easily discuss things like your will and how you eventually want to be cared for.

5. The legalities, or “who steps in if I can’t?”

Get your will and guardianship in order. Guardian’s Workplace Benefits Study shows that only a quarter (25%) of parents own a living will. If something should happen to you, who do you want caring for your kids and managing their money? This person will make decisions about their first car purchase, or whether they can afford to study abroad while at college, so choose someone you think will uphold your values. Next, designate a medical power of attorney who can make decisions if you’re incapacitated. Think about who you’d like to make decisions for you when you aren’t able, like while you’re giving birth, or in case of a car crash. Create a digital access plan. Include your usernames and logins for key banking, insurance, mortgage, and health care accounts (and make sure you update this every year, as passwords change frequently). Remember — your plan doesn’t need to be perfect right out of the gate. You just need to start. You’ve done a good job planning for your children’s future — do the same for your own.