August 8th is this year's National Dollar Day and the perfect time for parents to start focusing on where their dollars are going. The history of this holiday is unknown, but it is an ideal time to set some financial goals.1 Since finances often play a significant role in parents' lives, below are just a few simple ways for parents to celebrate National Dollar Day.
1. Start Saving for College
The earlier you start saving for your child's education, the more time for your savings to potentially grow. This may help you to stay on top of increasing tuition costs. Even if your children are older, putting some money aside for their future may help to alleviate some financial stress. At any age, this may be helpful. Look for state-sponsored educational savings accounts, or inquire with a financial professional about which investments might suit your needs.2
2. Jumpstart Your Retirement Planning
While focusing on your children's future is essential to many, so is focusing on your own. If you don't have a retirement plan in place, it may be time to get started. If you already have one, National Dollar Day is a great time to review your current plan to see if you are on track for your retirement goals. As parents, planning your retirement is crucial so that the financial burden of your future care is less likely to pass to your children. It may also help you to enjoy your retirement the way you anticipated.
3. Start an Emergency Fund
If you do not have one already, start an emergency fund. Since the unexpected may occur, it is often beneficial to have some money set aside to address these issues. By having a well-established emergency fund, you may not have to dip into savings or money budgeted for bills to take care of unexpected expenses.
4. Consider New Investments
National Dollar Day is a good time for parents to look at their current investment portfolio and see if there are new investments they may want to consider. Perhaps your portfolio needs more diversification. Maybe you need to adjust the risk level of your portfolio to fit your changing needs.2
5. Make a Plan to Tackle Debt
For many parents, debt leads to added stress. Take the time to develop a plan that helps you pay down your debt faster to enjoy a better financial position in the future. You may consider consolidating debt if you qualify for a low-interest loan. Another plan would be to pay down debt with the highest interest rate. You also could try the snowball option, where you pay off the smallest debt first, rolling those payments into the next one as each debt is paid off.
No matter what stage you are in your life, National Dollar Day is a good time to address some financial issues you may have put on the back burner.
1National Dollar Day, Holidays Calendar, https://www.holidayscalendar.com/event/national-dollar-day/
23 Ways To Celebrate National Dollar Day While Preparing For Your Golden Years, Indexed Annuity Leadership Council, https://fiainsights.org/three-ways-to-celebrate-national-dollar-day-while-preparing-for-your-golden-years/
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.
Investing involves risks including possible loss of principal.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by WriterAccess.
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