5 Pieces of Money Advice Parents Wished They’d Gotten Earlier, According to Money Expert Farnoosh Torabi

Farnoosh Torabi is a personal finance expert who often uses her platform to advise parents. She’s authored books and has appeared on TV shows like Oprah and Good Morning America.

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In a recent Instagram reel , Torabi shared five important money lessons the parents she works with wish they had known sooner. Take a look and see if her advice might work for you or a parent you know .

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Consider Local School Options When Buying Your Home

Research shows school quality has a direct impact on students’ academic achievement. That’s why Torabi said parents should consider school options when buying a home. You’ll set your children up for lifelong success by choosing a community with strong K-12 public school options and, if possible, free preschool.

Parents who live in areas with poor public schools have to make a tough decision. They can send their children to those schools and try to make up for the lack of resources with tutoring. Or pay for private school tuition.

The average cost of private school tuition in the United States is $12,350 annually. That’s about $1,000 extra in monthly expenses you’ll have just because you don’t live in an area with good schools.

You May Need To Sacrifice Financial Goals in the Early Years

Next, Torabi said parents should recognize they may need to sacrifice financial goals in the short-term for their child’s best interest: “In the early years, it’s survival. It’s OK to sacrifice one or two goals to pay for childcare.”

The average yearly cost of childcare in the U.S. has reached $11,582 per child. With an expense like that, saving for vacations or preparing for large purchases can be tough.

Torabi advised not to fight against it, and instead she recommended accepting that you may need to put some goals on hold for a while for the sake of your family.

That doesn’t mean you should stop saving entirely. It’s smart to keep yourself in the habit of saving, even if you have less money for now. You can even use a personal finance app to keep yourself on track and watch your progress over time.

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Prioritize Retirement Over College Funds

Everybody wants the best for their children, which sometimes means sending them to college. However, Torabi said you should prioritize retirement savings first, which is in line with what most experts say.

The key reason for that is people are largely on their own when it comes to funding their retirements. But colleges and associated groups offer many kinds of financial aid and scholarships, ranging from athletic deals to Pell grants. Plus, 70% of bachelor’s degree graduates have education debt.

So nobody else will step in to fund your retirement, but students have many ways to pay for their educations. That’s why it’s not worth sacrificing your retirement savings plan for a college fund.

Practice Meal Planning Before It’s Too Late

On a lighter note, Torabi also suggested that parents start practicing meal planning now. Otherwise, they’ll be broke when their children become teens!

That might be a bit of an exaggeration, but at least one survey shows that the preferences and eating behaviors of teens account for 30% of a family’s weekly grocery bills. That’s likely more than what parents spend on food for younger children.

Meal planning is one way to deal with those increased costs, and some families have saved thousands by doing it. But it can take time to figure out a system that works for you and yours. The earlier you start, the sooner you may find more room in your budget .

Save Some Money for Yourself

Torabi’s final piece of advice is to set some money aside for yourself. She said, “Make sure to reserve some money to support YOU during this time. Don’t let it all go to the baby.”

If the idea of spending more money on yourself doesn’t sound like smart financial advice, hang on. Psychologists say emotional spending leads to financial problems, debt and even decreased mental health.

When you leave very little for yourself, you don’t get to enjoy the things you love that cost money. That can cause stress and other negative emotions to build up, which may eventually erupt into a personal shopping spree anyway.

It’s a better idea to give yourself a small luxury every so often. Doing so can help you avoid major disruptions to your budgeting strategy even if you’re not making quite as much progress toward your goals.

Other Tips for Optimizing Your Budget as a Parent

Torabi’s advice is great, but it still only scratches the surface of what life is like financially for parents. There are other strategies you’ll want to use, too.

For example, try to avoid unnecessary debt. This is a key tenant of Dave Ramsey’s money management philosophy. Using debt to live beyond your means can only get parents into trouble.

You should also think about insurance while creating a money strategy. These policies let you pass the major financial risks in your life off to another party. Ramsey says there are eight kinds of insurance most people need at some point in their lives:

• Auto
• Health
• Life
• Homeowners or renters
• Long-term disability
• Identity theft protection
• Long-term care
• Umbrella policy

You can start with any of these policies that fit your needs. For example, auto, health and life can be very important for any family. But you may not need a long-term care policy until you’re older.

Finally, look for ways to lower your spending or increase income to transform your family’s budget. That could mean cutting back on luxury purchases for a few months or picking up a side hustle like driving for a rideshare company.

Ultimately, life will still throw unexpected financial challenges at you. But when you’re following best practices recommended by industry experts, those challenges become much easier to deal with in stride.

This article originally appeared on GOBankingRates.com : 5 Pieces of Money Advice Parents Wished They’d Gotten Earlier, According to Money Expert Farnoosh Torabi