Major life events like getting married, starting a family, and preparing for college expenses often bring both excitement and complexity. These milestones mark important chapters, but they also come with financial implications that benefit from thoughtful preparation.
At Concerto Financial, we understand that navigating these transitions takes more than generic advice. Our team helps individuals and families explore personalized financial pathways that reflect their current stage in life and anticipated needs. In this post, we’ll walk through the key planning considerations for three foundational milestones: marriage, having children, and funding college education. We will also offer strategies that may support your broader financial outlook.
Marriage: Building a Financial Foundation Together
Marriage is more than a commitment between two people. It is also the joining of financial lives. Whether you’re blending incomes, deciding how to manage debt, or planning for shared goals, communication and preparation are essential.
Start with a Financial Conversation
Open conversations around finances help create alignment early in the marriage. Topics may include:
- Current income and spending habits
- Existing savings, investments, and liabilities
- Personal money values and priorities
- Short- and long-term financial goals
Putting everything on the table helps foster mutual understanding and can reduce friction as you begin planning together.
Evaluate Account Structure
Couples often wonder whether to combine accounts, keep things separate, or find a hybrid approach. There is no one-size-fits-all structure. Some couples prefer shared checking accounts and joint savings, while others maintain individual autonomy with separate accounts but align on joint goals.
What matters most is creating a system that is transparent, agreed upon, and works for both parties.
Update Legal and Financial Documents
After marriage, it’s a good idea to review and update key documents:
- Beneficiary designations on retirement accounts and insurance
- Wills, powers of attorney, and health care proxies
- Title and ownership of property
- Emergency contact information
These updates can help ensure your plans reflect your new relationship and provide clarity in case of unexpected events.
Establish Shared Financial Goals
Together, consider what you’d like to work toward: buying a home, traveling, building an emergency reserve, or starting a business. Setting joint priorities can guide how you allocate resources, while also giving you shared motivation and direction.
Growing Your Family: Planning for Children
Expanding your family introduces new financial responsibilities, from medical costs and childcare to future education expenses. Preparing ahead of time can help reduce the impact on your household budget.
Understand the True Costs of Parenthood
While every family is different, common expenses in the early years of parenting may include:
- Hospital or birthing center fees
- Diapers, formula, and baby gear
- Childcare or reduced work hours
- Health insurance premiums and co-pays
Ongoing costs such as food, clothing, activities, and medical care continue to evolve as your child grows. Having a general understanding of these costs can help you create a more informed household budget.
Health Insurance and Life Insurance Considerations
With a new child, it’s important to revisit your health coverage. Adding a dependent typically needs to happen within a set window after birth or adoption.
In addition, many new parents consider term life insurance to help provide financial support in case one parent is no longer able to contribute. Coverage amounts often reflect future needs such as household expenses, caregiving, and education.
Start Saving Early
Even small amounts saved consistently can add up over time. Many families choose to open a dedicated savings account or college savings vehicle once a child is born. While we’ll go deeper into college planning later, starting early provides more flexibility and time for growth.
Build a Household Budget That Reflects New Realities
New parents often experience shifts in income and expenses. One parent may take unpaid leave, or both may need to adjust schedules to balance care duties. A flexible, responsive budget can help you adapt while maintaining focus on your financial priorities.
College Costs: Preparing for One of Life’s Largest Expenses
College can be one of the most significant investments a family makes. With the average cost of attendance continuing to rise, early preparation is often key to managing future costs and reducing student debt.
Understand the Range of Expenses
College costs include more than tuition. You’ll also need to account for:
- Room and board
- Books and supplies
- Transportation
- Personal expenses
- Fees for labs, technology, or student services
Public in-state schools, private universities, and out-of-state institutions all have different cost structures. Families benefit from understanding the full picture early on.
Explore Education Savings Options
Several savings vehicles can be used to set aside funds for college. Each comes with its own set of features and considerations.
529 Plans
A 529 plan is a tax-advantaged savings vehicle designed specifically for education. While contributions are made with after-tax dollars, earnings may grow tax-free and can be withdrawn tax-free when used for qualified education expenses.
Benefits include:
- High contribution limits
- Flexibility to transfer funds between family members
- Potential state tax benefits (depending on your state)
Prior to investing in a 529 Plan investors should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.
Custodial Accounts (UGMA/UTMA)
These accounts allow you to save and invest in a child’s name. Once the child reaches the age of majority, they gain full control of the funds. While these accounts offer flexibility, they may also impact financial aid eligibility more significantly than other options.
Regular Investment or Savings Accounts
Some families choose to use traditional savings or brokerage accounts to maintain greater flexibility. While these don’t offer the same tax advantages as 529s, they can be used for any purpose, including education.
Balance Education with Other Priorities
While saving for education is important, it’s also essential to maintain balance across your full financial life. That may include continuing to contribute to retirement accounts, managing debt responsibly, and maintaining an emergency reserve.
Parents often ask whether they should prioritize saving for college or for retirement. A general principle is to avoid compromising your long-term financial well-being, since there are no loans for retirement.
Consider Financial Aid and Scholarships
Many families find that their actual cost of college is reduced through grants, scholarships, and financial aid. When the time comes, completing the Free Application for Federal Student Aid (FAFSA) is a key step.
Some additional considerations:
- Aid eligibility can be influenced by family income, assets, and household size
- Some merit-based scholarships are available regardless of financial need
- Financial planning decisions made years earlier can influence aid outcomes
Talk About Expectations
College planning isn’t just about finances. It is also about communication. As children get older, talking with them about school choices, costs, and family values can help them make more informed and aligned decisions.
Will you cover the full cost of college? Do you expect your child to work or contribute? Is in-state tuition part of the plan? These conversations can prevent misunderstandings later and help your child build realistic expectations.
Integrating Life Events Into a Broader Financial Approach
Each of the milestones discussed—marriage, children, and education—can affect other areas of your financial life. Rather than addressing each in isolation, it may be helpful to approach these events as part of a broader financial roadmap.
Emergency Funds and Cash Flow
Life events often come with new and sometimes unpredictable expenses. Having a well-funded emergency reserve can help you manage unexpected costs without disrupting long-term plans.
Many financial professionals suggest maintaining at least three to six months of living expenses in a liquid account. For growing families, larger reserves may be appropriate depending on employment security and household needs.
Risk Management
As your family grows, so do the potential risks. Life insurance, disability insurance, and health coverage become increasingly important.
Key questions to explore:
- If one partner could not work, how would the family maintain financial stability?
- Are there contingencies in place for medical or caregiving needs?
- Does your insurance coverage reflect your current household?
Retirement Planning
Although it may seem far away, retirement planning remains a foundational element, regardless of your life stage. The earlier and more consistently you contribute to a retirement account, the more time you allow for potential growth.
As life events unfold, consider whether it is time to revisit contribution levels or investment allocations. A new marriage, child, or change in expenses can all shift your risk tolerance and timeline.
*Asset allocation does not ensure a profit or protect against a loss.
Estate Planning
Estate planning is not just for the wealthy. Basic documents like wills, healthcare directives, and durable powers of attorney help ensure that your wishes are respected and your loved ones are supported.
Once you have children, naming a guardian is a critical step. As assets grow, you may also want to explore tools like trusts or beneficiary designations to help ensure continuity.
*LPL Financial representatives offer access to Trust Services through The Private Trust Company N.A. an affiliate of LPL Financial.
Working with a Financial Professional
While it’s possible to navigate these milestones on your own, many individuals and families find that working with a financial professional can bring clarity and support. A financial professional can help:
- Explore different scenarios and model the impact of decisions
- Prioritize competing goals
- Review account types and savings strategies
- Adjust plans as your life evolves
At Concerto Financial, we partner with clients to support thoughtful preparation at every stage. We offer a process-oriented approach designed to reflect your values and vision while remaining responsive to life’s changes.
Key Takeaways
- Marriage requires financial transparency, updated documentation, and aligned priorities
- Having children introduces new budgetary responsibilities and considerations like insurance, and education savings
- College planning benefits from early action, clear expectations, and understanding all available resources
- Life events are best addressed within the context of a broader financial strategy
- Financial professionals can support planning efforts through ongoing guidance and education
Final Thoughts
Planning for life’s major transitions doesn’t happen overnight. But with clarity, intention, and the right support, you can approach these milestones with a sense of purpose. Whether you’re entering a new marriage, expanding your family, or beginning to save for college, now is the time to consider how your choices today may shape your future. Contact us today to schedule your consultation with one of our financial professionals.
*Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
*This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.