A financial planning checklist for parents with young children

1. Know what it costs to keep the household running

List essential spending: housing, food, childcare, transport, debt repayments and insurance. Include annual costs as well as monthly ones. Discuss what would change if one parent stopped working or needed time off.

MoneySense’s general starting point is three to six months of expenses in an emergency fund. Your family may need a different reserve depending on job stability, dependants and access to other resources.

2. Review protection for both parents

Consider what the family would need if either parent died, became disabled or developed a serious illness. Include income replacement, debt, childcare and the value of unpaid care.

Review the duration of cover as well as the amount. Ask whether the family could sustain the premiums if income fell. A needs-based discussion is more useful than choosing a sum because someone else bought it.

3. Understand the family’s healthcare arrangements

Keep a list of each family member’s health coverage and employer benefits. Agree on hospital preferences and check the likely out-of-pocket costs under the relevant contracts.

Think about the practical side too: who would handle claims, find policy documents and look after the children during treatment? Keep sensitive records somewhere secure that the appropriate person can access.

4. Give education and retirement their own plans

Write down the goal, time horizon and amount you can regularly set aside for each. Money needed soon has a different risk capacity from money intended for a distant goal.

Discuss how much of your child’s future education you intend to fund. Keep the plan flexible and revisit it as costs, income and preferences change. Include your own retirement needs in the same budget.

5. Organise care and estate decisions

Review your Will, LPA, CPF nomination and relevant insurance nominations. Discuss intended guardianship and how money for children should be managed with a qualified lawyer.

Create a concise document locator: where the policies and legal documents are held, who to contact, and who has the appropriate access. Avoid placing passwords or identification details in a public or unsecured file.

Start with the biggest unfinished item

You do not need to complete every decision at once. Choose the issue that would create the greatest strain on your family, gather the relevant information and set a date to address it. Revisit the checklist after a new child, home move or job change.