- Save For College
If you don’t already have a 529 plan open, now is a great time to get one open before year end. A 529 plan is an investment account for college expenses. At Bloom Wealth Advisors, we believe this is the best way to save for college. The sooner you start investing for your kid’s future college, the longer you will have for it to grow.
Before the year is over, we challenge you to save a little bit more towards your kid’s future education. Believe it or not, a little can go a long way. Are you expecting a year-end bonus that you can put towards this goal? Can you cut back on holiday gifts this year so you have extra to invest in their future education? Or consider asking relatives to skip the holiday gifts this year and use the money for their college instead.
Want more guidance saving for your kid’s college education? Check out our webinar: College Savings Tactics For The Savvy Investor
- Get Your Estate Plan In Place
If you are a young parent, it is so important to have your estate plan in place in case (god forbid) something happened to you. This is a grim topic and something most people don’t want to think about, but it is one of the most important plans you can have in place. If you don’t have an estate plan in place or don’t have term life insurance, commit to protecting your family and get it in place before the new year. If you are a client of ours, we have a potential solution for you to get an estate plan in place quickly and easily. Reach out to Katie Hafner, Client Relationship Manager, [email protected] and she can get you set up with our estate planning program. You’ll have an estate plan in less than an hour. And if you’re a young parent without term life insurance, now is the time to get that in place.
- Spend your FSA:
If you have a Flexible Spending Account (FSA), make sure you spend it before year-end. FSA’s are use-it-or-lose-it accounts, and you don’t want to leave money on the table. This goes for Dependable Care FSAs as well. Make sure any money that is in your account is spent by the year end for qualified expense. Please note, some FSA’s do have a grace period where they don’t have to be spent by year end, so make sure you understand your specific plan. Also note, this does not include Health Savings Accounts (HSA’s). HSA’s are NOT use-it-or-lose-it, so don’t feel like you have to spend these by year end.
- Plan for rising costs of childcare
As a young parent myself, I get how frustrating it is to have the cost of childcare go up every single year. Most childcare centers increase the costs every January, so now is the time to reach out to your school and see if there are any additional costs you need to plan for in 2025. Once you’re aware of the costs for next year, consider your cash flow and any tweaks you may need to make to accommodate the change. Ask yourself, do I need to cut back in any way? Where can I cut back? Do we have any other options?
Remember, this phase of life does not last forever. If you’re struggling as a working parent to pay for day care costs, you are not alone. Be patient with yourself and your family as you navigate this expensive time of life.
- Take any unused paid time off (PTO)
Being a working parent is hard and burnout is real. More than half of Americans (55%) are not using all of their PTO (1). We as parents are overworked and spread thinner than ever. Make sure you are taking some time for yourself and if you have extra PTO, take it! Plan a day for yourself before year-end or take an extra day or two off around the holidays. I’m sure you deserve it! With a few months left in the year, now is a good time to look at your remaining PTO and plan a day just for you.
We at Bloom Wealth Advisors want to support you through the many twists and turns of your life. We are parents too. We get how hard it is to balance and prioritize your future while also caring for your children. We hope you found this blog helpful and feel motivated to tackle the rest of the year. If you want more guidance on tips for parents, go watch our webinar, 6 Habits of Financially Savvy Parents Here.
