Starting a family is an exciting time of change and growth, which is why it is important to properly plan for the new chapter ahead. Care.com claims that in 2025, U.S. households are spending around 22% of their income on childcare, with 33% claiming they tapped into their savings. Budgeting for this large life event can be stressful; that is why we curated advice by age groups to help you be proactive in your planning.
The First Five (Ages 0–5)
Budgeting for Year One
In the first year, it can be hard to anticipate the varying expenses that will come your way. Breaking up your budget by category—like the nursery, formula, pediatric visits, diapers, and childcare—can help you keep track of where your money is being spent and allow you to adjust the budget as necessary. Laying it out by tiers can help the cost feel spread out and manageable, going from birth, infancy, and preschool.
➡️ How Fairvoy Can Help:
Fairvoy helps young families create a tailored budget that aligns with both short-term realities and long-term goals. We bring structure to uncertainty and help you prioritize spending while planning ahead.
Boost Your Emergency Fund
Having an emergency fund of 3–6 months’ expenses saved up can help protect your family from sudden income loss or unexpected health emergencies. A small monthly allocation can build a buffer against major shocks. In doing this, according to U.S. News, you are already ahead of 42% of Americans. To build your emergency fund from scratch, try starting with 1–3 months of expenses, and then build up to the common recommendation of 3–6 months’ worth. Setting up an automatic monthly transfer to your emergency fund account of a specified amount can add up quickly.
➡️ How Fairvoy Can Help:
We’ll determine how much you need in reserves and develop a savings strategy that complements your income, risk tolerance, and other goals—helping you build resilience without compromising growth.
Revisit Your Insurance Coverage & Estate Planning Strategy
Having a will can protect your family’s future and ensure peace of mind from day one. As time goes on, life insurance rates will rise alongside your age. Insurance and estate planning are two things that provide security and can protect the foundation of your family. Having updated policies, a clear will, and regular reviews sets your family up for success.
➡️ How Fairvoy Can Help:
Our team connects you with trusted estate professionals and helps ensure your insurance and estate plans are updated, cost-efficient, and aligned with your family’s evolving needs.
Single-Digits to Double-Digits (Ages 5–18)
Reassess Your Household Budget
As children transition from diapers to extracurriculars, your budget shifts from basic needs such as food and diapers to clothes, after-school programs, sports, music lessons, and teen activities. Annual costs can begin to increase drastically, and having a flexible budget can help absorb these costs without stress.
➡️ How Fairvoy Can Help:
We analyze your evolving spending and recommend real-time adjustments to keep your family financially balanced while still supporting the lifestyle and experiences you value.
Prioritize Saving for Education and Retirement
Planning for retirement and college savings at the same time can seem overwhelming. However, it is important to remember to prioritize retirement first, as retirement lacks loan options. Consider maxing out your employer retirement before beginning education savings. Look into 529 plans and how they could be helpful to your education savings goal. It is important to plan accordingly to help avoid dipping into retirement savings for college costs.
➡️ How Fairvoy Can Help:
We help you weigh trade-offs and design an integrated savings plan that doesn’t sacrifice your retirement for your child’s education—or vice versa. We also help you optimize savings vehicles like 529 plans, IRAs, and HSAs.
Review Your Tax Planning Strategy
Balancing all the aforementioned costs can be smoother when a family makes the most of tax credits, deductions, and flexible accounts. Look into child tax credits, dependent-care flexible spending accounts (FSAs), and earned income tax credit (EITC). An advisor can help claim all eligible credits and offer stage-aware tax planning.
➡️ How Fairvoy Can Help:
Tax strategy is woven into every plan we create. We proactively identify ways to reduce your tax burden through credits, deductions, and income-shifting tactics—maximizing what you keep.
Young Adult to Early Career (Ages 18–30)
Make Financial Independence & Foundation Building a Priority
Financial literacy and education can significantly improve financial health and confidence. Teaching your child(ren) strong financial habits to handle their own finances can ease the stress of the parent while fostering growth and independence. These habits can begin with something simple like grocery budgeting, as well as openly discussing money and showing your child how to make bill payments and set financial goals. These micro-decisions can ultimately begin to form habits, helping them budget for their own large life events such as marriage or a career change.
➡️ How Fairvoy Can Help:
We support multi-generational planning—coaching young adults on budgeting, saving, and investing early. We also offer financial literacy tools and guidance tailored to your child’s stage in life.
In Conclusion
From the rising cost of childcare to balancing education savings, retirement planning, and day-to-day expenses, managing a family’s finances can be complex. Each stage of a child’s life brings its own set of financial considerations.
Planning ahead can make a meaningful difference. With thoughtful guidance and a clear strategy, families can approach these transitions with more confidence and less stress. Fairvoy Private Wealth is here to support families through each chapter, helping to bring clarity and stability to life’s financial decisions. Contact us today to get started.