Finance

How to build a family financial plan

Published

2 years ago

June 3, 2024

Press Room

Key takeaways

Americans most commonly say they’d need to be living comfortably (56 percent), financially prepared for the future (44 percent), never worrying about money (41 percent) and living debt-free (41 percent) to consider themselves financially successful, according to a May 2024 Bankrate survey.
Most adults who have an idea of what financial success looks like for them say they haven’t yet achieved it (89 percent), according to the survey.
About two-thirds of adults with a vision for financial success (62 percent) think they’ll achieve it one day.
Nearly 30 percent of working women and 20 percent of working men don’t know how much they need to retire comfortably, according to a March 2024 Bankrate survey.

A family financial plan can steer your family toward financial success, helping you achieve your life goals and minimizing the sacrifices you need to make to reach them. But developing a financial plan can be complex, since you have so many factors to consider. On top of that, you’ll need to revise your plan over time, as your family’s needs and your life circumstances change.

“Building a family financial plan is an important step towards achieving your financial goals and ensuring the well-being of your family’s finances,” says Jordan Mangaliman, CEO of Goldline Financial Services in Fullerton, California.

Here’s how to create a family financial plan and what to watch out for.

How to build a family financial plan

A good financial plan helps your family effectively use its sources of income and balance those against current needs while anticipating future needs. The plan should help your family reach its short-term goals while preparing you to achieve your long-term goals as well.

1. Start with your family’s goals

The family financial plan begins with your goals, so you’ll want to understand what those are:

Do you want to retire early and only take on projects that you find compelling?
Do you want to simply build wealth for the future?
Do you want to fund a good life for your spouse and children?
Do you want to buy a dream house?

Whatever your goal, you need to identify it before you can start working toward it. Your financial plan is then structured around your goal and when you want to achieve it.

We all perceive financial success a little differently, and this can impact the goals you set for yourself. A recent Bankrate survey asked Americans to define what financial success looks like to them.

Most people valued comfort above all else at 56 percent, followed by being financially prepared for the future at 44 percent. Never worrying about money and living debt-free tied at 41 percent.

Others define success as having enough money to quit working, becoming a millionaire or owning a business. However you picture your “I’ve finally made it” moment, you’ll need a strong financial plan to make your vision a reality.

2. Build a budget to reach those goals

The “meat and potatoes” of a family financial plan is knowing your sources of income and your expenses. Among Americans who don’t consider themselves financially successful, 26 percent say they need to stick to a budget in order to achieve their goals, according to a recent Bankrate survey.

A good monthly budget will help you balance your near-term spending priorities and ensure that you’re saving some cash for the future, too. A budget is the base from which good financial decisions are made.

An effective budget helps you prioritize spending, so you’re not caught off-guard by upcoming expenses. It ensures that your wants don’t eclipse your needs and that you have money available when you do need it. A budget also helps you to avoid going into debt – at least unplanned debt – which can make your financial goals even more difficult to achieve.

The budget factors in your regular income and spending. That can help you prioritize which areas to focus on. You can track your spending to see what your typical spending patterns are and where your money goes each month. Then you can cut back on spending in certain areas in order to hit your financial goals.

As new priorities emerge – retirement savings, funding a child’s education, buying a home – you’ll need to adjust your budget to factor them in, or risk racking up high-cost debt. The budget becomes the place where you financially reconcile these competing priorities into a plan.

Here’s how to make a monthly budget and some resources for organizing it. You could also try a zero-based budget model to ensure every dollar has a purpose and is put toward saving, investing or essentials.

3. Build that emergency fund

It can be easy to overlook an emergency fund, especially if it’s tough to balance your income and spending. But the emergency fund is a great way to protect yourself and keep moving toward your long-term goals, because it can help you avoid having to take drastic measures.

“Establishing an emergency fund helps your family pay for unexpected expenses like a medical emergency or car repair,” says Mangaliman. “Aim to save at least six months’ worth of living expenses in a liquid and easily accessible account.”

The emergency fund should be a line item in your budget at least until you have that money saved up. This money is protection for you and your family’s financial goals, helping to ensure that some short short-term issue doesn’t derail your long-term plans.

Now is a great time to set up a high-yield savings account for your emergency fund.

4. Invest for the future

It can be easy to let your near-term expenses crowd out investing for the future, but you’ll want to be sure that you’re building for your financial future, too:

Retirement accounts: It can be easy to overlook these accounts, especially when you’re young, but don’t do it. Time is your biggest ally in retirement saving, so even starting small is important. Many employers offer a retirement plan such as a 401(k) or 403(b) that has various tax advantages, and many will offer you matching money if you contribute to it. In addition, everyone with earned income has access to an IRA, which allows you to invest on a tax-advantaged basis, too.
529 accounts: If you have children or plan on having them, then you’ll want to consider how to pay for their college education, and a 529 plan can help you do that. It lets you invest on a tax-advantaged basis to pay for education expenses and even student loans.
Taxable accounts: Beyond just specialized accounts, you can also put money away in general taxable accounts such as a brokerage account. The best brokerage accounts let you invest in potential high-return assets such as stocks and stock funds, and many also offer an attractive return on your cash, too.

Factor your investments in the future into your budget, so the money will be there when you need it. Investing for the future is one of the most difficult parts of the financial planning process, so it’s a great time to call in an expert to help you build this part of your plan.

5. Protect yourself with insurance

Life insurance is another element that can help your family keep moving toward its financial goals even in the event of a family member’s passing. Like the emergency fund, life insurance helps you avoid having to take drastic measures such as assuming high-cost debt.

Life insurance “is an important requirement when there are dependents, including children or a spouse,” says Stuart Boxenbaum, CFP, president, Statewide Financial Group in Jupiter, Florida.

But many families may slip up when it comes to getting enough coverage.

“The simple rule is to have the breadwinner’s total income multiplied by a minimum five years, or up to 10, for the death benefit,” says Boxenbaum. “If earnings are $100,000 a year, the minimum death benefit should be $500,000, [or it] could be up to $1 million.”

6. Revise your plan

It can be easy to make a plan and then not follow up as your life changes. And it will change. You’ll achieve some of your goals, children will be born and other people will pass out of your life. And those changes mean that you need to adjust your family’s financial plan in response.

“When you accomplish your goals on time or even ahead of time like paying off debt, you can repurpose that cash flow towards your next financial objective,” says Mangaliman. “Parents may also need to downsize their living situation when their kids are no longer living in their home, thus updating the family’s financial plan.”

“However, unforeseen circumstances like critical health events or a decrease in pay can delay reaching certain objectives, and a family financial plan should be updated accordingly,” he says.

“Conducting an annual or semi-annual review is important,” says Boxenbaum.

Even if the result of that regular review is just “no changes,” the review will keep you thinking about your financial plan and how it might need to be adjusted over time.

Where family financial plans go wrong

Crafting a family financial plan is not easy because you have so many different variables to consider. Here are some common places where you could trip up:

Lack of flexibility: Your financial plan should have some flexibility built in, especially around the budget. So build in room for expenses that could exceed the norm, such as winter heating bills or the unexpected repair. Saving too much never ends up being a problem, and it’s better to err in this direction than spending too much.
Not reviewing the plan regularly: Reviewing your plan regularly ensures that you’re working with the most up-to-date numbers, both for your income and expenses. It also allows you to adjust your budget to changes such as a new child and that child’s future education expenses, for example.
Not calling in an expert when needed: Building an adequate financial plan can be complex. “The best place to start is by calling in a financial advisor that works with families and individuals to help you do calculations,” says Boxenbaum. “A professional advisor likely does these types of cases frequently.”
Maintaining high-cost debt: High-cost debt can really crimp your lifestyle, and it can get worse over time if you don’t handle it. “Keeping credit card balances and other debts can feel like the norm, but it doesn’t have to be,” says Mangaliman. “Being intentional about paying off high-interest debt accelerates your family’s financial success.”
Not reviewing insurance: Your insurance needs can change over time, as your life changes. Review your coverage to be sure that you have what you need as well as that you’re not paying for coverage that you don’t need.
Listening to unqualified advisors: Social media is full of unqualified people offering advice. Be very careful who you take advice from, and understand the best practices.

Creating a financial plan can be overwhelming, but you can call in pros to help you get it done.

“Financial planners can give you support and personalized guidance on how to most efficiently reach your family’s financial goals,” says Mangaliman. “It’s important to seek a financial professional who can help you with a custom overall strategy instead of pitching a single product or service.”

Bankrate’s financial advisor matching tool can help you identify advisors who can help you build a financial plan for your family.

Bottom line

Building a financial plan can be a lot of work, but it can help you and your family reach your financial goals. But start with your family’s budget and work outward from there, calling in experts where you need them to help you make smart decisions and stay on track.

Finance

How Applied Materials Is Driving Transformation of the Finance Function with SAP Taulia

Published

15 hours ago

June 4, 2026

Press Room

How Applied Materials Is Driving Transformation of the Finance Function with SAP Taulia

Within the global manufacturing industry, maintaining a competitive edge requires a delicate balance between driving internal efficiency and fostering strong external relationships. For Applied Materials, a leader in materials engineering solutions for the semiconductor industry, this challenge became the foundation for a strategic finance transformation program, with an SAP Taulia solution emerging as a key enabler.

The journey began in early 2019 with the launch of Agile Finance, an end-to-end transformation initiative designed to support the company’s aggressive growth trajectory, which included a goal to double in size. The initiative was built around three strategic pillars: enhancing the efficiency and effectiveness of the finance organization, promoting career fulfillment, and establishing a robust digital operating model. The impact was significant, with the finance function achieving approximately 35% productivity gains in its labor force.

The third pillar—the move to a digital operating model—is where the partnership with SAP Taulia began.

“The SAP Taulia Dynamic Discounting solution was introduced not merely as a cost-cutting measure, but as a strategic tool to transform and digitize the interaction with Applied’s extensive, global supplier base,” Junaid Ahmed, corporate VP, Finance at Applied Materials, says. “We understood that to reap the benefits of digitization, we had to ensure the suppliers were on board. It needed to be a win-win outcome.”

Unprecedented flexibility for suppliers

The program empowers suppliers—thousands of them worldwide—to self-select which approved invoices they wish to discount for early payment. This is not a continuous, all-or-nothing commitment but rather a decision made on an invoice-by-invoice basis. This flexibility allows suppliers to manage their working capital needs with greater precision, taking advantage of early payment during their own critical periods, such as quarter-end or year-end, to help meet their own financial targets.

The system also drastically improves transactional efficiency. Suppliers no longer have to call Applied to track invoice status, approval, or payment date. All this information is available 24/7 in the SAP Taulia solution, reducing resource allocation on both sides and ensuring both reap the benefits of moving to an integrated, digital system.

Strategic benefits for Applied Materials

For Applied, the program is a testament to its focus on balancing efficiency with strong supplier relationships. The philosophy is a “win-win” built on a crucial spread: Applied Materials, as a Fortune 500 company with strong cash flow, has a significantly lower cost of capital than many of its suppliers. By funding the discounts, Applied captures a return—the discount income—while offering its suppliers funding at a rate close to their cost of capital, but with greater convenience.

This relationship-focused approach is critical. Applied’s supplier account managers actively support the program because they recognize its mutual benefit, not viewing it as a finance mandate to push costs onto the supply base.

Furthermore, the “dynamic” nature of the discount rates is a powerful risk mitigation tool. Unlike fixed contractual discounts, the rates can be adjusted in response to global economic changes, such as shifts in interest rates. When interest rates rose after the pandemic, Applied was able to adjust the discount rates accordingly with minimal pushback, as the core proposition remains the valuable spread between the parties’ cost of capital.

The SAP Taulia Dynamic Discounting solution has been rolled out globally, giving all suppliers the opportunity to use it. This has been critical over the last 12 months as many businesses around the globe have been subject to new and often unexpected tariff costs impacting their margin and their liquidity.

“The flexibility of the solution means suppliers can access funds when they need them, which helps them navigate some of the economic uncertainty that many businesses are facing,” Dirk Holoubek, managing director, Finance Shared Services, explains. “2025 saw a 23% increase in usage of the discounts, reflecting the pressures that suppliers are feeling right now on their cash flow.”

The solution’s capability to drive sophisticated analytics is also a major strategic asset. It helps provide insights into the different costs of capital between Applied and its supplier base. This data allows for targeted outreach and communication, ensuring that the offer of capital support is proactively extended to the suppliers that need it most.

The strategic value of the solution is further cemented by its ownership. The acquisition of Taulia by SAP brings several advantages.

“Trust is really important to both us and our suppliers,” Ahmed says. “For our suppliers to adopt a new solution, they need to know its technology they can rely on in the long term. Being part of SAP creates that assurance in the long-term future of the program.”

Looking forward, Applied Materials is already focused on the next stage of the transformation project: Agile Finance 3.0, which is focused on enabling the organization to become AI-first. The company is deploying a global, organization-wide AI assistant to drive personal productivity, but the strategic application of AI in the supplier management space is even more profound.

AI is expected to transform decision-making enablement by analyzing critical information and communicating effective options. In the future, AI will be able to proactively assess the specific needs and attributes of the supplier base, enabling Applied to address issues more quickly and resolve them earlier. The benefits are already tangible in e-invoicing: AI has made the solution more flexible and “human-like,” capable of reading minor changes in invoice format that would have previously caused electronic errors. This reduced rigidity and increased flexibility are directly contributing to the overall efficiency of the digital operating model.

By leveraging the SAP Taulia Dynamic Discounting solution, Applied Materials has not only digitized a process but also strategically transformed its financial operations, creating a system that is agile, resilient, and focused on maintaining mutually beneficial relationships with its global supplier ecosystem.

Cedric Bru is CEO of SAP Taulia.

Finance

Houston budget amendment would give financial assistance to help those impacted by a trash fee

Published

1 day ago

June 3, 2026

Press Room

Houston budget amendment would give financial assistance to help those impacted by a trash fee

HOUSTON, Texas (KTRK) — Houston City Council could soon consider whether to offer financial assistance to help those who may struggle to afford a proposed trash fee.

This month, council will approve a budget. In it, Mayor John Whitmire doesn’t increase taxes.

However, he does want to charge a $5 monthly fee to cover trash services. A plan to help close the city’s nearly $200 million deficit that doesn’t add up to some.

Speaking in front of council on Wednesday, Super Neighborhood 64 president Lindsay Williams brought more than concerns, she had numbers surrounding the mayor’s proposed $5 monthly trash fee.

A plan his team says could climb to $25 a month by 2032. If it does, Williams told council that $300 annual cost would be just .15% of a $200,000 income.

For someone making $15,000, it’s two percent. “More than 13 times the burden for the same trash, same truck and same fee, but not the same pay,” Williams explained.

However, Controller Chris Hollins said the mayor’s not being truthful about the real cost.

“Houstonians are not stupid,” Hollins said. “We should not treat Houstonians like they’re stupid.”

Hollins said the cost may need to be $40 a month. Whitmire didn’t respond to Hollins during the meeting when he asked if he plans to increase the fee.

No matter the cost, some council members want to offer financial relief. Right now, there are no exceptions.

However, an amendment council will consider from Council Member Alejandra Salinas next week would change that.

“If they for whatever reason met the threshold and need an additional need because of the administrative fee, our amendment would allow them to apply for funds through the water fund,” Salinas said.

The trash fee wasn’t the only item from the mayor’s seven and a half billion dollar budget proposal that sparked debate. Hollins said a plan to divert money away from water utilities could drain a billion over the next five years from infrastructure money.

Whitmire disagrees saying there’s more than enough funds to handle the change, and continue with projects.

“We’ve all admitted the budget’s not perfect, but certainly it’s a first start that Houstonians understand and it’s a shame it’s being so politicized because it’s literally people’s lives and death,” Whitmire said.

Council will vote on amendments next week. It has to have a new budget in place by the end of the month.

Finance

How can I illustrate our financial position to a spouse who shows little interest?

Published

1 day ago

June 3, 2026

Press Room

How can I illustrate our financial position to a spouse who shows little interest?

Reader question: My spouse has little interest in our financial position. As we age, this concerns me. I try to share some basic information (income, spending, account balances, debt, and so on) each month but rarely get a response. I think graphs or charts might be of more interest to her than a bunch of numbers. What recommendations would you have for illustrating our financial position so that I am not the only person aware of how we are situated? Thanks!

Answer: Your situation is pretty common. Most couples I know develop a division of labor over time, where one person is in charge of financial matters and the other person is less involved. That’s definitely the case for my husband and me. He’s in charge of paying all the monthly bills and preparing our tax returns, but the financial planning and investment decisions are up to me. This type of arrangement might work well for a long time, but can become less sustainable with age, particularly if the “finance person” in the relationship dies or develops a major health issue.

Online tools and mind maps

Illustrating your financial situation with charts and graphs is a great idea that might help your spouse become a little more involved. Morningstar’s  Portfolio X-Ray  tool includes a variety of images that help illustrate your financial situation. Websites for most major brokerage firms also include some visual tools. Schwab, for example, offers a Portfolio Checkup and a bar graph illustrating your account’s monthly income from dividends and interest income. Vanguard has a Portfolio Watch tool and a variety of performance illustrations, tools, and calculators.

A  mind map, which we used with clients when I worked for a financial advisory firm, can be another way to picture your entire financial situation on one page. There are various  softwaretemplates  for drawing a mind map, or you can simply sketch it out with a large sheet of paper and a pencil. Start with your names at the center of the page. Then draw spokes connecting to various categories, such as names of other family members; investment accounts; real estate and other assets, insurance policies, estate plans, key goals and values, and contact information for accountants, estate planners, and other professionals. It can be helpful to go through the mind map together and make any updates needed at least once a year.

Other ways to communicate about money

A few other ideas—though not related to charts and graphs—might also be useful.

I like the idea of putting together a  net worth statement  that itemizes cash, taxable accounts, real estate, retirement accounts, and debt for each member of the couple as well as items owned jointly. It’s a good idea to update this document at least once a year and  discuss it as a couple. If you set up the document as a spreadsheet, you can include columns with additional information such as account numbers, what each account is used for, which accounts are subject to required minimum distributions, or tax issues like potential capital gains.

Many couples also put together a  binder  (sometimes humorously called a “Doomsday Book”) that contains information about where to find important paperwork, insurance policies, how bills are paid, what each account is for, steps the surviving spouse will need to take, final wishes, and any other critical information.

A well-qualified financial adviser can bridge the information gap

Finally, you could consider working with a good  financial adviser,  who can help involve your spouse in financial matters while you’re still living and step in to fully manage investments and personal finance decisions if you pass away before your spouse. Make sure the adviser holds the Certified Financial Planner designation and charges fees that are reasonable. Although a 1% fee is still the industry standard for accounts of $1 million or less, it’s possible to find advisers who charge significantly less, including a few who price their services based on hours worked instead of a percentage of assets under management.

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This article was provided to The Associated Press by Morningstar. For more personal finance content, go to https://www.morningstar.com/personal-finance.

Amy C. Arnott, CFA, is a portfolio strategist for Morningstar and co-host of The Long View podcast.