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Savings, Youth Accounts, Money Management, Article

Life Events that Require New Financial Plans

As life changes, so does your financial situation and relationship with money. Here are some common major life events that require some financial planning, which can include adjusting your budget, increasing your savings, taking out loans, or receiving assistance from financial advisors.

First or New Car

When shopping for a vehicle, you’ll want to consider whether or not you’ll need an auto loan, what monthly payments you can afford, and how much your auto insurance will cost. Deciding between a new or a used vehicle can also impact your budget.

Higher Education

Financial plans for higher education expenses can start when you need student loans to pay for your own enrollment, or when you start a savings fund for your children’s future college expenses.

Something you’ll want to consider when paying for higher education is federal versus private loans and all their differences. Plus, private loans terms and agreements differ by lender and type of loan, so it’s important to compare provider options if that’s the route you decide.

New Job or Pay Raise

When starting a new job that provides benefits, such as the option of a 401(k) (possibly with an employer contribution) or health insurance, it’s good to start thinking about investing in your future and saving for retirement. You should also consider how paying for health insurance will affect your finances, and you’ll need to adjust your monthly budget.

If you get a pay raise at your current job, and if your budget is at a surplus each month, think about how you can invest that money or build your savings.

First or New Home

There are so many expenses to consider with buying your first or new home. Most people will need to finance their purchase with a home loan. But the monthly cost of homeownership goes beyond just the mortgage payments to also include property tax, home insurance, utilities, and possibly HOA dues.


Once you choose to intertwine your life with someone else’s, you’ll need to start doing your financial planning together. As a married couple, you generally share income and expenses. It’s essential to get a picture of your financial situations so you can both properly allocate money to expenses. That way, you can determine how each of you will be responsible for making payments.


Growing your family will introduce new expenses to your life. You must consider the initial or one-time expenses of preparing to bring a baby home, as well as monthly expenses of caring for a baby. And while caring for a newborn, you may be reduced to a single income, either temporarily or longer, depending on the needs of your situation.

A bigger household means more groceries, more home supplies, and most likely childcare costs until they’re old enough to be home alone.


Transitioning from the workforce into retirement is a huge change that impacts your way of living. Social Security Income alone is not likely to cover your cost of living, which is why it’s important to start saving for retirement as soon as possible. Your new budget should consider your expenses against your new streams of income. There’s a chance you may have to make lifestyle changes if your budget has a deficit. However, nowadays, many folks in “retirement” find ways to supplement their income with part-time or freelance work and small jobs.

Estate Planning

An estate plan is more than just a will, and can provide you with more tools to control what happens with your estate or assets after you’re gone. Estate planning and establishing a will, trust, and powers of attorney can offer privacy protection and avoiding probate. This allows for a smoother transition of ownership to your heirs. Estate planning can be a lengthy and complex process so it’s best to meet with a financial advisor to assist you.

At Orange County’s Credit Union, we have the resources and financial experts to help you create and manage your budget, or plan and achieve your goals. Whatever stage of life that you’re in, we’re here to guide and assist because we’re with you all the way. For budgeting assistance or financial coaching, learn more on our Financial Wellness page.

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